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Houses in Multiple Occupation (HMO)
The Housing Act 2004 , which was introduced
in April 2006 in England and Wales was created with
the intention of providing a fairer and better housing
market for those renting properties. The main elements
of it include ;
a) Licensing of houses in multiple occupation
A house with three of more stories, occupied by 5 or
more people who form 2 or more households (a household
being defined as persons belonging to the same family)
is classified as an HMO in England and Wales and subject
to licensing. The licensing is intended to improve standards
in properties where it was felt tenants where at highest
risk. Any building, which is occupied by students but
managed or controlled by a Higher Education Institution,
is deemed not to be an HMO for licensing purposes. Local
authorities have at their discretion, but subject to
approval from national government, the power to designate
other sizes of properties as HMO’s, which are
subject to licensing.
More information can be found at www.odpm.gov.uk/
b) Housing Health and Safety Rating
System (HHSRS)
This is a new system, replacing the
"fitness standard for houses", and decides
whether a house is healthy and safe. Local council staff
will randomly inspect properties and assess the likelihood
of injury or ill health calculated via 29 hazards.
More information can be found at www.odpm.gov.uk/
In Scotland the Licensing Order makes
it mandatory from October 2000 for all HMOs to be licensed.
To be classified as a licensable HMO the accommodation
must be the only or principle residence of a specified
number of people who are not members either of the same
family or one or other of two families. The specified
number started on 1st October 2000 at six or more and
is reducing annually until it reaches its minimum level
, ie three or more. Students in accommodation that is
an HMO in term time are treated as being solely or principally
resident there in order to calculate the number of occupiers
of an HMO.
Deposits
You will normally be required to pay
a deposit to the Landlord as security in case you damage
the property or furnishings. It can also be used to
cover unpaid bills, rent or missing items. Most landlords
will ask for a sum equivalent to four weeks' or a calendar
month's rent but the maximum a landlord can charge by
law is a sixth of the annual rent payable in England
and Wales and two months rent in Scotland. The deposit
should be refunded normally within 28 days after you
have vacated the property, provided there are no problems
with the condition of the house. In order to ensure
that you get your deposit back:
Ensure that you have a written statement
from the landlord explaining what is covered by the
deposit. If the landlord gives a verbal explanation,
write to him/her to confirm the details.
Ensure that you have a receipt for monies paid.
Ensure that you have a full inventory of furniture.
Get the landlord to sign it. You may wish to take photographs.
Take reasonable care of the house and furniture during
the tenancy.
Towards the end of your tenancy write to the landlord
inviting him/her to inspect the property.
Settle all the bills.
When you leave return all the keys to the landlord and
make a written request for the return of your deposit.
Keep a copy of the letter.
Tenancy Deposit Scheme
From April 2007*, deposits
paid by tenants who have assured shorthold tenancy agreements
will be safeguarded by a government sponsored scheme
, who will facilitate the resolution of any disputes
that arise in connection with such deposits.
*Please note the starting
date for the scheme is due to be announced by parliament
in April 2007
There are two types of scheme
Custodial Scheme - a tenant pays the
deposit to the landlord who in turn places it into a
designated scheme account. When the scheme administrator
returns the deposit to either the tenant or the landlord
it is done so with interest at a rate specified by the
Government. If they are not in agreement, a final court
order will have to be obtained specifying the proportion
of the deposit to which each is entitled.
Insurance based schemes - a tenant pays the deposit
to the landlord who only transfers it into a designated
scheme if there is a dispute at the end of the agreement.
When the landlord and tenant reach agreement or a court
decides how much each party is entitled the administrator
will distribute the deposit accordingly.
If a landlord fails to pay the deposit to the scheme
then a scheme will have adequate insurance cover to
compensate the tenant in the event they are owed monies
Within 14 days of receiving your deposit
your landlord must give you the relevant information
regarding the scheme safeguarding your deposit. You
should always check that the scheme has received your
deposit.
More information can be found at www.odpm.gov.uk
Retainers
These are paid to the landlord by prospective
tenants. The retainer period forms part of the contract
(typically July to August) when the student is unlikely
to want to occupy and the landlord may wish to carry
out certain maintenance works to the property. The normal
retainer payment is 50% of the per calendar month rent.
Government links-
England and Wales www.housing.odpm.gov.uk/factsheet
Scotland www.scotland.gov.uk/publications
Landlord Associations
England www.rla.org.uk
Scotland www.scottishlandlords.com
Letting Agents - each town and
city will have a selection of letting agents who will
let and manage your property normally in exchange for
a fixed fee and a percentage of the rent
The letting agency association web site - www.arla.co.uk

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