HMO licence questions under caution?

Hi Sarah,
I would definitely make contact with Landlord Licensing and Defence as their specialist area.

How is your lovely 2 bedroom flat being rented to a couple becomes an HMO? Makes no sense at all., Your explanation isn't very clear to me,

I quote " I allowed a couple, at viewing, who then became a couple and a friend when we started the paperwork, to rent a lovely 2-bed flat."

This does not make much sense to me, I cannot see if the couple are sharing this 2 bed flat with anyone else. So it cannot be an HMO.

You haven't been foolish and you haven't done anything wrong.
HMO liciensing are just treating you as if you were the world's worst criminal and had broken every law and rule under the sun, except you haven't. They takle a "sledgehammer to crack a nut" approach.
We had a similar letter with wording to the effect of "statutory obligations" etc. Our property is currently being refurbished, but at the inspection, I thought they focussed on trivial matters (eg having two sockets in each room) and not matters of substance such as the firealarms and carbon monoxide alarms, fire doors etc.On the upside, the HMO inspector was actually quite friendly and helpful.
As Neil suggested you should contact Landlord Licensing and defence, but don't feel so guilty and don't let it affect your health.

Reply to the comment left by Mike at 13/02/2023 - 11:59
My reading is that the couple are now sharing with a friend. If the couple are unmarried, then that potentially makes it as three unrelated people sharing. With selective licensing that would make it a HMO.

The only comment under caution should be 'no comment'.

It sounds as though the Council has an Additional Licensing scheme in place that makes a property with 3 people in 2 households a licensable HMO.
The letter you have had is very serious and you should seek legal advice from a specialist housing solicitor as a matter of urgency. The Council can opt to impose an unlimited fine or a penalty of up to £30,000. Furthermore, they can assist the tenants to reclaim up to 12 months rent for any period without a licence. You would also likely be banned from letting property in the future
I'm very sorry. I understand how easily this is done and the response of some Councils is very heavy-handed.

Sarah, we've successfully helped landlords with this kind of problem, if you'd like to discuss ?

An entire house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet can be considered an HMO.

If they are going to fine you they will.

I don't think you have any grounds to appeal or mitigate as you already have HMOs and know what constitutes an HMO and your responsibilities.

Why feeling feeling aggrieved or finding this very intrusive and onerous? You have not carried out your responsibilities or due diligence and it is onerous as you could face very stiff fines. Sorry to sound harsh.

When did the friend arrive? Did the couple ask you? When did you find out? Did you do anything when you found out? When? Was this friend a visitor who then stayed on or a deliberate flat share? Does your tenancy agreement not state who the permitted occupants are? Or that visitors may be permitted but for a maximum of x days (Check with your LA how many days a visitor may stay as some have different time periods).
They haven't rented out the 2nd bedroom on the Rent A Room Scheme?

Whose names are the utilities in? Are there 3 people registered on the electoral roll at the address? Importantly if yes when did this happen?

Councils are strapped for cash and looking to add to their depleted coffers but looks like they are just ascertaining the status of all your properties and could consider this a one off and maybe just a warning. Under caution is basically telling you to not lie and if you do then can be fined or criminally prosecuted or both.

Think your choices are, and irrespective of whether being fined or not,
(1) A formal letter requiring their friend to vacate the property immediately
(2) to issue a s21 for breach of contract (depending on what your tenancy agreement states) and how they went about getting this friend in situ
(3) Register as an HMO, upgrading what you need to, and accept their friend as a tenant and amend the tenancy agreement to include them PLUS the friend needs to be named on the utilities and electoral roll
(4) accept the couples surrender of the tenancy but do not give them any money as they have caused this situation and liability for hefty fines, and you are now flagged up to the Local Authority.

If you re-let then regular inspections and clauses to stop this happening again.

My understanding of when a property cannot be considered an HMO, if I let a 2 bedroom flat to a couple, they are given my permission to sublet one room to one other unrelated person only, that does not become an HMO. Think how it can be an HMO, suppose a couple offered to home a Ukrainian citizen which is what our Government pleaded with us those who can spare a room for refugees from Ukraine.
This two bedroom property is not an HMO.

We need a bit more information on what the problem is.

Firstly the purpose of the questionnaire is to gather evidence. You are not required to answer those questions.

You let the property on a single tenancy and don't control any part.

So all the fire safety, Hmo management regs etc drop away.

You mentioned Article 4 so it's a planning thing. No that can't be right. You haven't done any development in letting a flat so that should also drop away.

You should turn the table in them and ask why they believe this is an HMO and why it should be licensed. If they give you correct reasons then apply for a licence. (PS I'm an ex Hmo licensing enforcement officer). Provide more details and we will try and help.