Complete Guide on Do I need an HMO licence for 3 tenants in 2026
You are a landlord in the UK, managing an HMO, and are confused about do i need a HMO licence for 3 tenants or not. The answer is so simple because it totally depends on who your tenant is and which household they have come from. If your 3 tenants are from the same household, then you do not need an HMO license.
The Property Management Company is providing you with further guidance on what an HMO is, when a license is required, and what a landlord should do to stay fully compliant with UK law.
What Is an HMO Property in the UK?
The House in a multiple occupancy property is one in which more than three tenants are living together and sharing all facilities. The common amenities of the HMO include the bathroom, toilet, kitchen, stairs, hallways, and living areas.
The important factor for the house to be an HMO is that “all the tenants should be from different households”. For example, if three friends or three colleagues are renting your property together, then they are classified as a separate household.
What Is an HMO Licence and Why Do You Need One?
This license is offered by the Local housing authority, known as the mandatory HMO license, according to which you can rent out your property to multiple tenants. It is provided after the detailed inspection of the property. The legal requirements for the HMO license are given below:
- The landlord has no criminal activity record.
- They have not breached the law, such as the right to rent checks.
- The property should meet the fire safety regulations.
- Landlords have to provide the gas safety certificate every year, and updated certificates for electrical appliances to the local council when they demand.
- There are size requirements for the bedrooms for taking the HMO license, such as 6.51 sq meters for one person who is more than 10 years old. For the 2 persons is 10.22 square meters, and for one child under 10 years is required size of the room is 4.64 square meters.
Quick Overview of the HMO Licence Requirements for 3 Tenants
The table below highlights the requirements of the 3 tenets for HMO licensing
| Factor | Details |
| Number of Tenants | 3 tenants |
| Same Household | No HMO licence required |
| Different Households | An HMO licence may be required |
| Tenants vs Occupants | Law counts occupants, not tenants, lodgers included |
| Licence Type | Mandatory, Additional or Selective |
| Mandatory Licence Threshold | 5+ tenants from 2+ households |
| Additional Licence | Varies by local council |
| Fit and Proper Person | The landlord must pass a council character check |
| HHSRS Assessment | Council inspects the property within 5 years of the application |
| Licence Duration | 5 years |
| Penalty for No Licence | Fines up to £30,000 or an unlimited fine on prosecution |
| Rent Repayment Order | Tenants can claim back up to 12 months’ rent if unlicensed |
| Subletting Risk | The landlord is responsible even if the tenant sublets without permission |
| Section 257 HMO | Converted flats without building regulations may need a licence |
| Who Applies | Landlord or letting agent |
| Issued By | Local Housing Authority |
Do I Need A House In Multiple Occupancy License For 3 Tenants?
The simple answer is yes, but it is not required in every condition. In some cases, for tenants its not legally needed.
When 3 Tenants Do Not Require A Licence
In case the 3 tenants are from the same households, then the landlord does not require the HMO licence. For example, a couple with their child living in a house do not require this license.
When An Hmo License Is Required
If the tenants from the different households are living in the same house and sharing the common amenities, then the landlord requires an HMO license. For example, three friends, colleagues or strangers living in the same house.
Types of HMO Licenses in the UK
The important types of houses in multiple occupancy are given below:
Mandatory HMO License
This is the most common type of HMO licence. If landlords rent out the property to 5 or more tenants from 2 or more separate households, then they require this license. This licence is required in England and wales without depending of which council area your property exists. It lasts for 5 years but should be renewed before expired.
Additional HMO Licence
Some of the local councils have introduced their own Additional HMO licensing schemes. It means this is required even if the tenants are fewer than 5 persons. For example, a property with 3 or 4 tenants from different households could still require a licence depending on your council area. The landlords should check properly to see if they require this additional license or not, according to their local authority.
Selective Licence
This licence is not specialised for the House in multiple occupancy HMO because it applies to every landlord’s property, even if only 1 tenant is living in it. It is introduced to improve the standards across all the privately rented properties.
How To Apply For An HMO License?
Once you have confirmed that the answer to do I need an HMO licence for 3 tenants is yes, the next step is to apply. If you want to take the HMO licence in the UK, you have to go through this process.
- First of all, you have to check your property with your local council to know property requires a mandatory or additional licence, depending on the area.
- The next step is to fill out the HMO licence application form that is available on the official website gov.uk.
- Then you have to pay the application fee, which is around £300 and £1,500 depending on the council authority.
- The important documents that you require for the application are a recent gas safety certificate, an electrical installation condition report, a fire safety risk assessment certificate and proof of ownership.
HMO Safety Standards Your Property Must Meet
Some safety standards are compulsory to follow for the HMO property under the Housing Act 2004, which are given below
Heating:
Each living space in the HMO property should have a proper heating unit.
Washing facility:
All bathrooms should have hot and cold water and an adequate supply of water for the number of tenants. There should be a washbasin in each unit.
Kitchen facility:
- Every shared kitchen must have these facilities for the tenants
- Sinks with draining boards, hot and cold water.
- Fridge with an adequate freezer compartment
- Fire blanket, extractor fan and fire doors.
Bedroom size:
Since October, 2018, all the HMOs in England should have these minimum sizes for the bedrooms:
- 6.51 sq metres for one person over 10 years old.
- 10.22 sq metres for two people over 10 years old.
- 4.64 sq metres for one child under 10 years old.
How Much Does an HMO License Cost in the UK?
The estimated cost for the HMO license is about £600 and over £1,500. This is not a fixed cost because it varies with the local council. Some general local council licensing costs are given below:
| Council area | Approximate cost |
| Oxford | £554 (2025 rate) |
| Woking | £880 new application |
| Norwich | £636 new application |
| Wandsworth | £1,450 additional HMO licence |
| Uttelsford | £1,343 new application |
| Average range | £300 – £1,500 |
Common HMO Licensing Mistakes Landlords Must Avoid
Landlords should avoid these mistakes when they are applying for a House in Multiple Occupancy HMO:
- Neglecting the legal requirements of the local housing authority.
- Ignoring property maintenance responsibilities.
- Not give attention to the health and safety regulations.
- Poor financial planning
- Poor communication with tenants.
- Skipping tenant referencing and household Checks.
Conclusion
Do I need an HMO licence for 3 tenants? It totally depends on who your tenants are. If your 3 tenants are from different households, your property is legally classified as an HMO. Renting without the correct licence can result in fines of up to £30,000 in the UK. Always check with your local council as licensing rules vary significantly across different areas. If you are unsure, the Property Management Company is here to guide you through every step of the HMO licensing process.
