Managing a House in Multiple Occupation (HMO) can be a rewarding investment for landlords, particularly when housing vulnerable tenants such as children. However, managing an HMO property designed to accommodate children comes with its own set of challenges. The regulations are more stringent, the tenant needs are unique, and proper maintenance is crucial. At Prem Property, we’ve seen it all when it comes to HMO mismanagement, and we’ve helped landlords, including those managing children’s homes, overcome these obstacles. In this blog, we’ll outline the top three mistakes landlords often make with HMOs and explain how Prem Property helps resolve these challenges, ensuring compliance, safety and profitability.
Mistake #1: Failing to Comply with HMO Regulations for Children’s Homes
One of the most common and costly mistakes landlords make is failing to fully understand and comply with the regulations governing HMOs. These regulations cover everything from licensing requirements to fire safety measures, and when you add the additional responsibility of caring for children, the stakes become even higher.
Prem Property’s Approach:
In one particular case, we helped a children’s home provider in Leeds who had purchased a large property with plans to house up to eight children and two live-in carers. The property, however, lacked the necessary HMO license and had several compliance issues that needed to be addressed before it could house vulnerable tenants. The landlord didn’t realise that children’s homes are subject to a different set of rules and regulations, especially when it comes to fire safety and room allocations.
- Solution: Prem Property provided a full property audit and identified key areas where the property was non-compliant, including fire escape routes, the number of children per room, and the safety equipment required. Our team assisted the landlord in submitting the required paperwork to local authorities to obtain the proper licensing and ensure the home met all HMO regulations, including those specific to children’s homes.
- Outcome: After ensuring that the property met the necessary standards for fire safety, room allocation, and safety features, the property was granted the correct HMO license, and the children’s home was compliant with all the regulations. This not only avoided hefty fines but also ensured a safe environment for the children, which in turn made the property more attractive to care providers and local authorities.
Key Insight: According to the National Landlords Association (NLA), landlords who fail to comply with HMO regulations risk fines of up to £40,000 or even prison sentences. Compliance isn’t just a legal requirement—it’s essential for the safety and well-being of tenants, especially in children’s homes.
Mistake #2: Overlooking the Special Needs of Children in HMO Properties
When managing a standard HMO property, tenant screening and behavior management are important, but when children are involved, the stakes are even higher. Children’s homes require a tailored approach that meets not just housing needs, but emotional and psychological care as well. Many landlords fail to account for the special needs of young residents, which can lead to disputes, turnover and a toxic living environment.
Prem Property’s Approach:
A children’s home in Manchester faced challenges with tenant turnover and disputes among residents due to poor management and a lack of understanding of the specific needs of vulnerable children. The landlord had not implemented proper systems for tenant management and lacked experience with children’s care requirements. As a result, tensions between the children led to a disruptive environment.
- Solution: Prem Property stepped in and introduced a comprehensive management plan for the property. We implemented a detailed tenant vetting process, ensuring that all live-in carers were qualified and experienced in child care and behavioral management. Additionally, we worked with the landlord to set clear house rules and introduced regular house meetings to improve communication among residents and staff.
- Outcome: The introduction of better-trained staff and improved communication led to a more peaceful living environment. With clear expectations set and regular check-ins, tenant disputes decreased significantly. The children in the home felt more supported and the landlord saw a reduction in tenant turnover, which improved the property’s overall profitability.
Key Insight: Research has shown that homes with well-trained staff and clear rules for shared living can lead to fewer disputes and longer tenancy durations. For children’s homes, having a strong tenant management system is essential for maintaining stability and fostering positive environments.
Mistake #3: Neglecting Routine Property Maintenance and Safety Checks
Children’s homes, like all HMOs, are subject to wear and tear, but when vulnerable children are the tenants, maintaining the property is even more critical. Neglecting regular maintenance can lead to a range of issues, from minor inconveniences like broken heating to more serious safety risks, such as faulty wiring or plumbing issues.
Prem Property’s Approach:
A children’s home in Birmingham was facing maintenance issues that were affecting the quality of life for the children and the carers. The heating system had broken down, and plumbing issues were becoming more frequent. The landlord had neglected to address these issues, thinking they were minor, but they were having a significant impact on the home’s functionality.
- Solution: Prem Property implemented a proactive property maintenance schedule, conducting regular inspections and ensuring any issues were dealt with promptly. We worked closely with contractors to ensure that essential systems, like heating and plumbing, were regularly serviced and repaired as needed. In addition, we upgraded older appliances and ensured all safety checks were up to date.
- Outcome: The property became much safer and more comfortable for both the children and the carers. Regular maintenance and timely repairs reduced emergency calls and costly fixes down the line. This not only improved tenant satisfaction but also helped the landlord save money on major repairs by addressing issues early.
Key Insight: According to a report from the British Property Federation, regular maintenance can reduce repair costs by up to 30% and increase tenant retention by as much as 20%. For children’s homes, regular maintenance isn’t just about cost savings; it’s about ensuring the property remains a safe and secure environment.
The Importance of Working with a Guaranteed Rent Solution Provider
One of the most effective ways to avoid the pitfalls of managing an HMO property—especially one housing children—is by partnering with a guaranteed rent solution provider like Prem Property. Our services ensure that landlords receive regular, reliable rent payments without the stress of managing tenants, maintenance, or compliance issues.
We take care of everything—from ensuring the property complies with local regulations to handling tenant relations and ensuring regular maintenance is conducted. By partnering with Prem Property, landlords can focus on growing their portfolios without worrying about the day-to-day challenges of property management.
Why Prem Property is the Right Choice for Children’s Homes
Managing a children’s home as an HMO requires specialized knowledge and experience. At Prem Property, we bring years of expertise in handling HMOs, especially in properties designed for vulnerable tenants. Whether you’re dealing with compliance issues, tenant disputes, or property maintenance, we provide tailored solutions that not only resolve problems but also enhance the profitability and sustainability of your property.
Our comprehensive service ensures that your property meets all regulatory standards, stays in top condition, and provides a safe and supportive environment for tenants.
Final Thought
Managing an HMO property is complex, but with the right knowledge and support, landlords can turn challenges into opportunities. If you’re managing a children’s home or any other HMO property, consider partnering with Prem Property to ensure your property runs smoothly and remains compliant with all regulations. Get in touch today to find out how we can help you avoid the common mistakes landlords make and set you on the path to success.