How HMO Landlords Can Stay Ahead Of Legislative & Compliance Changes
A leading property expert has outlined how landlords specialising in houses in multiple occupation (HMOs) can best prepare for legislative and compliance changes.
Mish Liyanage, the CEO of Manchester-based The Mistoria Group, specialises in HMOs and says stricter enforcement of HMO licensing requirements, fire safety standards, and tenancy laws is placing greater responsibilities on landlords in this sector.
“In the north west From Manchester, Salford to Bolton and Liverpool, landlords must navigate a complex web of legal requirements, including legislative changes such as the Renters Reform Bill,” he said.
“These regulatory changes are increasing pressure on HMO landlords. With councils tightening enforcement and new legislative proposals on the horizon, staying compliant has never been more critical. I have faced numerous challenges over the last 18 months on HMO compliance, tenant complaints and would like to share my experience, so that other HMO landlords can avoid these mistakes.
Property expert Mr Liyanage pointed out that failure to comply isn’t just a bureaucratic inconvenience—it carries severe financial consequences. Fines for non-compliance can reach up to £30,000 per offence, significantly impacting landlords’ profitability and liquidity. Ignorance of the law is not a defence. Landlords must take responsibility for their properties and implement robust compliance strategies to protect their investments.”
Here Mr Liyanage outlines the key challenges landlords need to address in this area and how to best stay compliant.
Fire and Safety Regulations
“Local councils such as Salford council are enforcing stricter fire safety regulations, requiring landlords to meet higher standards. These include properly fitted fire doors with self-closers, smoke alarms in all communal areas and monthly inspections to ensure compliance. Regular inspections and expert fire risk assessments are critical for landlords to avoid fines and protect their tenants.” Staying ahead of these regulations is not just a legal requirement, it is essential for tenant safety and operational success.”
Conflicting Regulations Across Cities
“Different councils impose varying licensing rules, requiring landlords to stay informed. Some regions require additional HMO licensing for 3 bed and 4 bed HMOs, while others impose selective licensing in high-risk areas or mandate specific space and amenity standards. Each city has its own compliance landscape. Landlords must stay informed about local regulations to avoid unexpected fines and legal issues.”
Renters Reform Bill and Its Impact
“With the proposed abolition of Section 21 ‘no-fault’ evictions, removing problematic tenants in HMOs will become increasingly difficult. This is particularly challenging due to high tenant turnover. A well-structured tenancy agreement and clear dispute resolution processes will be essential in maintaining smooth operations.”
Bedsit HMOs and House Share HMOs
“BedSit HMOs require stricter fire safety measures due to higher fire risks from individual, lockable rooms, often with separate cooking and living spaces.and reduced tenant interaction due to individual tenancies. House Share HMOs have lower risk levels, as residents often know each other and all tenants are in one joint and several liability tenancy, but fire doors, fire alarms, and escape route protection still remain. remain essential.”
How To Stay Compliant
Mr Liyanage advises:
- Proactive Compliance
“Rather than waiting for enforcement action, landlords should ensure all HMOs are fully licensed and meet local council requirements. Conducting regular fire risk assessments and maintaining fire doors and alarms are critical safety measures that help prevent property damage and tenant harm. Additionally, keeping detailed maintenance and inspection records serves as crucial evidence in case of audits or disputes.”
- Stay Informed on Local Licensing Rules
“HMO regulations differ across the UK, making it essential for landlords to stay updated. Some councils, like Salford, adopt a zero tolerance policy in relation to compliance failures and enforcement action of 3 and 4 bed HMOs , while others, such as Liverpool, require compliance with Article 4 directives before property conversion. In certain areas, stringent space and amenity standards must be met for HMO approval. Staying up to date with these regional variations is vital to avoiding enforcement actions and financial penalties.”
- Legal Protection and Risk Management
“A strong tenancy agreement is essential for mitigating rent arrears and disputes, especially with the Renters Reform Bill affecting eviction processes. Landlords should prepare for these changes by outlining alternative grounds for possession to protect their rights. Consulting legal experts can help ensure all documentation is watertight, reducing exposure to legal challenges.”
- Training and Accreditation
“Regulations continue to evolve, and landlords and agents who fail to stay informed risk falling behind. Joining organisations such as Propertymark or the National Residential Landlords Association (NRLA) provides direct access to legislative updates and compliance best practices. Attending training sessions and industry-led workshops equips landlords with the necessary knowledge to adapt to new regulations efficiently.”
- Investing in High-Quality Property Management
“Engaging a professional property management service helps landlords handle compliance-related responsibilities, from tenant relations to fire safety checks. Hiring an experienced and thorough HMO manager ensures regulatory requirements are met, while appointing a Fire Risk Consultant provides added assurance in meeting fire safety obligations. Additionally, smart technology, such as fire alarms and electronic door locks, enhances tenant security and simplifies compliance tracking. Focus on proactive compliance, continuous education, and strategic management.”
Summarising the issue, Mr Liyanage concluded: “as a landlord for almost 20 years The HMO market still remains profitable with high rental yields and demand , but increasing compliance risks, high enforcement fines, and licensing requirements mean landlords must be more diligent than ever. Mish Liyanage stresses that taking a reactive approach is no longer viable as it will end up in a huge financial cost. Instead, all HMO landlords. Landlords should not wait for a compliance breach before taking action. This is something I have learned the hard way. Seeking expert guidance and staying engaged with trade bodies will help safeguard their properties and tenants while maximising returns.”
Image source: Unsplash
