HMO (House in Multiple Occupation)
Property rented to 3+ unrelated tenants sharing facilities
Full Definition
An HMO is a property occupied by three or more tenants from two or more households who share facilities like bathrooms or kitchens. Larger HMOs (5+ tenants, 3+ storeys) require mandatory licensing. HMOs typically generate 20-30% higher yields than single lets but require more management and must meet additional safety regulations including fire doors, smoke alarms, and adequate facilities.
Related Terms
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