An HMO (house in multiple occupation) is a property let to three or more tenants who form more than one household and share a bathroom, kitchen or toilet. Mandatory licensing applies where five or more people across two or more households share the property. Additional and selective licensing schemes applied by local councils can lower that threshold.
From 1 May 2026, the Renters' Rights Act 2025 makes every English HMO tenancy periodic from day one. Section 21 is gone, rent-review clauses are disapplied, and the written statement of terms becomes a statutory requirement. The LetSafe HMO Tenancy Agreement is drafted against that regime — £29, editable DOCX plus typeset PDF, instant download.
Per-room vs whole-property HMO tenancies
There are two legitimate structures for an HMO. The choice affects liability for rent, notice serving, and what happens when one tenant leaves.
- Per-room tenancies. Each tenant has their own tenancy for their room plus a licence over the shared areas. If one tenant leaves, their rent obligation ends — the others are not jointly liable. Most HMO landlords prefer this structure. Our template is per-room.
- Joint and several. All tenants sign one tenancy for the whole property. Each is liable for the full rent. If one leaves mid-term, the remainder owe the lot. Suitable for student lets where a clear group takes the whole property.
- Company or guarantor lets. A student or young-professional HMO often uses guarantors for each per-room tenant. Our Guarantor Agreement (LS-E-004) slots in alongside this template.
What the per-room tenancy must cover
The statute requires a written statement of terms. The prescribed content is minimum; the practical content is wider. Our template addresses both.
- Identity of landlord and each tenant (per-room)
- Address of the HMO and the demised room, with a plan as an exhibit
- Rent, frequency, method of payment, and the Section 13 reference
- Deposit amount, scheme and Prescribed Information acknowledgement
- Schedule of shared amenities (kitchen, bathrooms, common lounge) and the licence terms over them
- Cleaning regime, fire-safety obligations, bin schedule
- Tenant's two-month notice right, landlord's possession grounds, rent-review mechanism (Section 13 only)
- Rights-based clauses required by the RRA 2025 — pets, benefits, children, bidding, discrimination
Licensing and planning touchpoints
Mandatory HMO licensing applies to properties with five or more occupants across two or more households sharing facilities. Additional licensing (a local-authority scheme across a designated area) typically applies at three or more unrelated occupants. Selective licensing can apply to all private lets in a designated area regardless of occupancy.
Planning is a separate regime. Properties let to three to six unrelated occupants fall under use class C4 (small HMO). Above six is sui generis and needs express planning permission. Article 4 directions (in force across many London and metropolitan boroughs) remove permitted-development rights from C3 to C4 — meaning you need planning permission for the HMO use as well as a licence.
Our HMO Licensing Application Pack (LS-E-027) walks landlords through the council application. The tenancy agreement itself must reference the licence number once issued and include the fire-risk-assessment acknowledgement.
The fire-safety and Awaab's Law overlap
HMOs carry tighter fire-safety duties than single-let properties: interlinked alarms, fire doors, emergency lighting in purpose-built HMOs, regular PAT and electrical testing. The template includes a fire-safety addendum the tenant signs separately, acknowledging the arrangements.
Awaab's Law (extended to the PRS) applies to HMOs at the point of commencement in your local-authority area. The landlord has a prescribed window to investigate damp or mould once notified in writing. Our Awaab's Law Damp / Mould Response template (LS-E-025) is the companion document — include it in your HMO tenant welcome pack.
Common HMO-tenancy mistakes the template is designed to avoid
HMO landlords get caught on a few recurring issues. Each is pre-empted in the template.
- Treating a per-room tenancy as joint and several — the template is explicit: individual liability for rent
- Missing deposit Prescribed Information for each per-room tenant — the template has a per-tenant insert
- Using an AST template post-May 2026 — ours is a periodic assured tenancy from day one
- Omitting the Section 13 rent-review mechanism — ours cites it by name
- No fire-safety addendum — the template includes one the tenant signs separately
- No shared-amenity schedule — creates disputes over cleaning, noise and access
Frequently asked questions
Do I need an HMO licence and a tenancy agreement?+
Yes — they are separate. The tenancy agreement is the contract between you and the tenant. The HMO licence is a council-issued authorisation for you to operate the property as an HMO. Mandatory licensing applies to five-plus occupants across two-plus households; additional and selective schemes can lower the threshold in specific areas.
What's the difference between a per-room tenancy and a joint tenancy for an HMO?+
In a per-room tenancy, each tenant signs their own contract for their room plus a licence over shared areas and is liable only for their own rent. In a joint tenancy, all tenants sign one contract for the whole property and are jointly and severally liable for the total rent. Per-room is safer for the landlord in professional lets; joint is common for student groups.
Does the Renters' Rights Act 2025 affect HMO tenancies?+
Yes. From 1 May 2026, every HMO tenancy in England is a periodic assured tenancy from day one. Section 21 is abolished, rent rises go through Section 13, and the landlord must issue a written statement of terms. The LetSafe HMO template is drafted against this regime.
Can I charge different rents for different rooms?+
Yes. Each per-room tenancy sets the rent for that room independently. Rooms with en-suites, better light, or larger floor area typically command higher rent. Rent increases use Section 13 and apply per tenancy — you can stagger them across the house.
What happens if one HMO tenant leaves mid-tenancy?+
In a per-room tenancy, their individual tenancy ends on two months' notice and the landlord can re-let that room to a new tenant without affecting the others. In a joint tenancy, the remaining tenants continue to be liable for the full rent unless you agree to release the leaver and re-contract with the remaining group.