If you live in a house or flat which is occupied by more than one household it may be classed as a house in multiple occupation (HMO). ‘Household’ means people who are living together as a family.

If the house or flat is an HMO, your landlord probably has extra legal responsibilities. 

Do I live in an HMO? 

You may be living in an HMO if you live in a house or flat that is: 

• occupied by at least 3 contract holders, forming more than one household, and 
• you share a toilet, bathroom or kitchen facilities with other contract holders. 

This could include: 

• a house split into separate bedsits 
• a house or flat- share, where people have separate occupation contracts 
• a hostel 
• a bed-and-breakfast hotel that is not just for holidays 
• students living in shared accommodation (although many halls of residence and other types of student accommodation that are owned by educational establishments are not classed as HMOs). 

It is not always easy to work out whether you live in an HMO or not. If you’re not sure, get help. 

What responsibilities does the landlord of an HMO have? 

The landlord’s most important responsibilities are to ensure that: 

• the property is kept in good repair
• the property is kept in a safe condition 
• the property is fit to live in 
• proper  fire safety measures  are in place 
• annual  gas safety checks  are carried out 
• electrics are checked  every 5 years 
• the property is not  overcrowded. 

These rules exist to ensure that people living in HMOs have access to decent facilities, and to reduce the risk of fire. If you are experiencing problems contact the environmental health department of your local council and they may assess your property under The Housing Health Safety Rating System. This aims to ensure that your home doesn’t have any serious hazards, and allows a council to take action against landlords whose properties are dangerous. 

You can find out more about repairs if you have a private landlord here.

Does my landlord need a licence? 

There are three types of licensing scheme for HMOs in Wales. Licensing schemes are designed to improve the standards of HMOs by placing certain obligations on landlords and agents: 

Rent Smart Wales 

Any private landlord of a property (including an HMO) must be registered with the Rent Smart Wales scheme. 

In addition, whoever does the letting and management of the property must be licensed under the Rent Smart Wales scheme. This might be the landlord, the agent or both (if there is a split of responsibilities for letting and management). To obtain a licence the landlord or agent will need to pay a fee, declare that they are a ‘fit and proper’ person, and attend training about their rights and responsibilities. 

A landlord can face penalties, including prosecution, if they are not registered and/or licensed with the scheme. 

Many people living in HMOs have a standard occupation contract. If you have a standard occupation contract and your landlord or agent has not registered with the scheme, any possession notice your landlord gives you is not valid. 

For more information on the Rent Smart Wales scheme see our page on Landlord registration and licensing. 

Mandatory licensing 

In addition to complying with the Rent Smart Wales scheme, your landlord must apply to their local council for a licence to rent out your property as an HMO if: 

• it is at least three storeys high; 
• contains five or more people; 
• has 2 or more households living in it; 
• contract-holders share toilet, bathroom or kitchen facilities. 

The council will decide if a property meets an acceptable standard and is well managed before registering the property as an HMO.  Your landlord will need a separate licence for each HMO it owns. 

A landlord can be prosecuted and fined for renting out an unlicensed HMO. 

If you’re a standard contract-holder and the HMO should be licensed but isn’t, any possession notice your landlord gives you is not valid. 

Additional licensing 

Local councils can also choose to insist that other smaller HMOs in specific areas be licensed. 

Check with your local council to find out what the requirements are in your area and if your landlord has registered your home as an HMO. 

What can I do if my landlord doesn’t comply? 

If you live in an HMO and you think your landlord is not fulfilling her/his responsibilities, contact Rent Smart Wales or your local council. The environmental health department at the council are normally responsible for dealing with complaints about HMOs. 

The council can prosecute landlords of HMOs (or any manager they have employed) if they break the law. In extreme cases, the council can take over the management of the property. 

Restrictions on eviction

If your landlord should have a licence but doesn’t, they can’t give you a ‘no fault’ notice to end your contract. However they may be able to give you a ‘with grounds’ notice, for example if you are at least 2 months behind with rent.

If you are considering having someone else live with you and pay you rent, it is important to understand what kind of renting agreement you should create. This arrangement could be a lodgers agreement or a sub-occupation contract. Key differences between a lodger and a sub-holder: 

• A sub-holder rents from someone who her / himself is a contract holder rather than the owner of the property. The owner of the property is called the head landlord.  
• A sub-contract can apply to anything from a single room to an entire property. The sub-holder must have exclusive access to at least one room – usually a bedroom.
• Neither the contract-holder nor the head landlord can enter the sub-holder’s accommodation without permission. 
• A lodger rents a room in the landlord’s home. S/he may receive some services from the landlord, such as meals, laundry or cleaning. 
• A lodger can’t stop the landlord from entering their room(s). The lodger may also receive some services, such as meals, laundry or cleaning. These things will depend on what was agreed at the start of the agreement.  

Can I sublet my property? 

You should check your occupation contract to see if it allows you to sublet the property to another contract-holder. Your contract might not allow you to sublet. 

If the contract does allow it, you will probably only be allowed to sublet with your landlord’s consent. You must put your request to the landlord in writing.  

Your landlord can’t refuse consent without a good reason or only give consent upon conditions that are unreasonable.   

Your landlord might ask for further information to help them deal with the request. Any request for information by your landlord must be made within 14 days of your written request.  

I have made a request to my landlord, when will I hear back?  

Your landlord should get back to you with their decision in writing within 1 month from:   

• the day you made the request, or   
• if your landlord asked for more information, the date on which the information is provided.   

My landlord has given consent but with conditions   

• Your landlord must provide you with written notice of the conditions at the same that that they give you written consent.  
• You can ask the landlord for a written statement of their reasons for the conditions.  
• If your landlord doesn’t give a written statement of reasons within one month of you requesting the statement, then you may be able to accept the consent without the conditions.   

My landlord has refused to give consent   

• If your landlord has refused to give you consent to sublet, you can write to your landlord asking for a written statement of reasons.  
• Your landlord must provide you with a written statement within one month from the date you requested the statement.  
• If your landlord fails to provide you with a written statement within the time frame, then this may be treated as having given consent without conditions.  

My landlord has given consent with conditions that I disagree with   

If your landlord provides you with a statement of reasons for refusing consent, or a statement of reasons  for conditions, that  you do not agree with,  you may be entitled to apply to the court on the grounds that:  

• The landlords refusal of consent is unreasonable, or   
• one or more of the conditions imposed is unreasonable  

If you need to apply to the court, get help immediately. 

What rights do sub-holders have? 

Sub-holders have the same rights as other contract-holders. See here for more information. This includes rights to: 

• claim housing benefit to cover the rent 
• occupy the room(s) that they have exclusive use of without interference from other people (including the contract-holder or the head landlord) 
• get repairs done. 

However, the sub-holders rights may change if your occupation contract comes to an end.  (see below). This is particularly important if the head-landlord has a fixed-term agreement. 

What happens if my occupation contract ends? 

The sub-contract will be valid for as long as your contract continues. But whether the sub-holder has any rights after your contract comes to and end depends on whether the sub-contract is legal or not. 

This depends on: 

• whether the head landlord agreed to the sub-contract  
• whether the head landlord imposed any terms of the sub-contract, and  
• if those terms were adhered to. 

If your head landlord knowingly accepts rent directly from the sub-holder, it may become legal. This is true even if the sub-holder agreement was originally illegal.  By accepting rent, the head landlord may be admitting that the sub-holder has a right to live in the property. However, some landlords will get round this by saying that they are only accepting the money as something called a ‘charge for use and occupation’ and not as rent.

This is a complicated area of law, so get help. 

Lodgers 

A lodger is someone who rents a room in her/his landlord’s home and who shares living space with her/him. Some lodgers receive services, such as meals or cleaning, as part of their agreement. Only certain people are allowed to take in lodgers. If you want to do so, you’ll need to work out how both you and your lodger’s rights are affected. 

Who can take in a lodger? 

Homeowners can usually take in lodgers. Most mortgage agreements allow you to rent out a room in your home, but you generally need permission from your lender. Check your mortgage agreement to see what it says. 

Most contract holders can only take in a lodger if they: 

• rent a whole house or flat 
• have a spare room 
• get permission from their landlord before a lodger moves in. 

If you rent from a community landlord and have a secure contract, you have the right to take in a lodger. Most other types of renting agreements do notallow lodgers. Check your agreement to see what it says.

Will taking in a lodger affect my entitlement to benefits? 

Yes. Taking in a lodger will probably affect the amount of benefits you get if you’re claiming. You will need to tell the Council’s housing benefit office and your local benefit office that you have taken in a lodger and how much rent you are receiving. This will be the case even if your lodger is living rent-free. If you simply don’t tell them, you may end up having to repay an overpayment, or be prosecuted for fraud. 

Housing benefit
If you’re receiving housing benefit and you take in a lodger, the first £20 per week of rent that you receive from the lodger will not be counted as income when your entitlement is being calculated. If you also provide some meals to your lodger only half of any rent they pay each week above £20 will be counted as income. For example, if your lodger pays £50 per week for their room and some meals, £35 will not be treated as your income when the amount of housing benefit you are entitled to is being worked out. Your income from the lodger will be treated as being £15 per week. 

If you just rent the room to your lodger and do not provide any meals, only the first £20 per week that you receive in rent will be disregarded. Anything above £20 will be treated as income. So, if the rent is £50 per week, £30 will be treated as income when the Council work out how much housing benefit you are entitled to. 

Other welfare benefits
If you are receiving a means-tested benefit like income support (IS) and job seekers’ allowance (JSA), the first £20 each week that you receive in rent will not be counted as income. If you also provide some meals to your lodger, only half of what they pay you each week over £20 will be counted as income. 

If you don’t provide meals, then all of the rent that you receive over £20 will be classed as income when the amount of benefit you are entitled to is being calculated. 

Universal credit
If you are receiving universal credit, the rent that you get from your lodger is not counted at all as income. You will still need to tell the local benefits office that you have taken in a lodger. 

Council tax
You will be responsible for the council tax. If you were previously living alone and were eligible for the 25% single person’s discount you will no longer be entitled to that once you have a lodger. You may able to claim to council tax reduction. You should contact your local council for more information. 

Other things to consider before getting a lodger 

Insurance
Renting out a room may also affect your contents insurance. Most insurers will put up premiums, but it’s still important to inform them if you want to be sure that your belongings are protected. If you don’t tell them, the insurance may not be valid. 

 What contract status do lodgers have?
If a lodger shares facilities such as the kitchen and bathroom with the landlord, s/he will be an excluded occupier. 

If you don’t share facilities, the person renting a room could be a sub-holder rather than a lodger.

Should there be a written agreement?
It is a good idea to have a written agreement which clearly sets out the arrangements between you and the lodger for paying the rent and any deposit, the house rules and how the agreement can be ended. Both you and the lodger should sign the agreement and keep a copy each. Setting out the rights and responsibilities writing from the start can help to avoid misunderstandings or disputes further on down the line. 

Where can I find a lodger?
Some areas have lodging schemes which can help to match prospective lodgers to people with rooms available to rent. Your local council may be able to give you information about anything operating in your area. Some councils have accommodation websites where landlords can advertise rooms to rent free of charge. The Housing Department of your local council is a good starting point to find out what is available in your area. 

If you live near a university, they may have a lodging scheme for students and may be able to advertise your room. 

Put the word out to friends and family that you have a room to rent – they may know someone who is looking for a place live. Some people feel more comfortable renting a room out to someone they know, even if just through a friend, family member or acquaintance. 

You can advertise your room in shop windows, on local notice boards or put an advert online. in the newspaper. 

Choosing a suitable lodger

Remember, if you take in a lodger you will have to be prepared to share at least part of your home with them. Even if they have their own bedroom, you are likely to be sharing the kitchen and bathroom. Think carefully whether you are willing to do that before you commit to renting a room out. 

When you meet a prospective lodger, think about whether they will fit in with your household. You can ask them for references from previous landlords and could do a credit check. 

If you have children at home, you may want to ask your lodger for a police check, but there is a fee payable. 

A lodger is someone who rents a room in their landlord’s home and who shares living space with the landlord.  

Some lodgers receive services, such as meals or cleaning, as part of their agreement. Only certain people are allowed to take in lodgers. 

A lodger’s landlord could be the owner of the property, or someone who rents the property from the owner. 

What rights do lodgers have? 

If you share facilities such as the kitchen and bathroom with the landlord, you will be an excluded occupier. Excluded occupiers have very few rights. The landlord will only have to give reasonable notice, which could be a very short amount of time, in order to evict you. 

If you don’t share facilities, you could be a sub-holder rather than a lodger. This means that the landlord may need a court order to evict you. 

Should there be a written agreement?
It is a good idea to have a written agreement which clearly sets out the arrangements between you and the landlord for paying the rent, any deposit, rent in advance, house rules and how the agreement can be ended.

Be careful about paying a lot of money upfront. If the arrangement doesn’t work out it might be difficult to get the money back and you may need to make a claim in the court to recover it. Many live-in landlords don’t require deposits or rent in advance, but if they do, make sure that this is included in your written agreement and that this covers the circumstances that the landlord can keep part or all of the money when you move out.

Both you and the landlord should sign the agreement and keep a copy each. Setting out the rights and responsibilities of landlord and lodger in writing from the start can help to avoid misunderstandings or disputes further on down the line. 

I have a lodgers agreement with someone who is renting the home from another landlord

If the person you have a lodgers agreement with is renting the property from another landlord (called a ‘head landlord’), this does not usually affect your agreement. However, if your landlord’s contract with the head landlord ends, the head landlord might be able to evict you even if your lodgers agreement was for a fixed term.

Much will depend on whether your landlord’s contract allowed them to take in a lodger or sublet. For more information about what they should consider if they intend to take in a lodger or sublet, see here.

The law in these situations is complex, so get help.

Thinking of moving in with someone? Whether you have separate contracts, a joint contract, or a contract in only one person’s name, will have a big impact on your rights.  

If all of the people living in the property signed one contract when you moved in, you will have a joint occupation contract and you are joint contract-holders.

If each person in your household signed a separate contract with the landlord, you are likely to have individual occupation contracts for your rooms. You may have different rights depending on when each of you moved in.  

If one or more people in your household have an occupation contract with the landlord but you don’t (for example, if you’ve moved in with a friend and have made an agreement with her/him, but not with the landlord) you have very limited rights.

What rights do joint contract-holders have?

If you have a joint contract, all contract-holders have exactly the same rights. You are all equally responsible for paying the full rent and keeping to the terms of the contract. If one person is not paying the rent or causing other problems you could end up having to pay their share, or any other costs. Your landlord may be entitled to keep the deposit if there is any rent owing or damage to the property at the end of the contract. 

Can a joint contract-holder leave the contract?

If you have a joint secure or periodic standard contract, or a fixed term standard contract that has a contract-holders break clause, you may be able to leave the contract. This is known as ‘withdrawal’  and will not end the agreement for everyone else. The right to withdraw is a fundamental term.

Withdrawal notices 

The minimum length of withdrawal notice you should give your landlord is 1 month. This is a supplementary term of most occupation contracts. However, your contract may specify a different notice period so you should check your contract carefully. It is best to ensure your notice covers up to the end of your rental period. For example, if your rental period begins on the 5th of the month then notice should be given at least 1 month before so the end of your notice falls on the 4th or 5th of the month.  

Informing the other joint contract-holders 

You should also notify the other joint contract-holders in writing and give them a copy of the withdrawal notice. You should do this at the same time you give the withdrawal notice to your landlord.  

Informing the other joint contract-holders will allow them time to search for other people who they could add as a joint contract-holder in your place. 

If you wish to withdraw from the contract, it is important to follow the correct procedure. If you leave without doing so, you will remain responsible for the contract and will still be liable to pay rent. 

Can a landlord evict one of the joint contract holders?

If the landlord under an occupation contract believes that a joint contract-holder is responsible for anti-social behaviour or other prohibited conduct, they can end that joint contract holder’s rights under the contract, without ending the entire contract. 

The landlord must serve a notice to the joint contract holder outlining the breach and state that the landlord will apply to the court for an order ending the joint contract holder’s rights.  

The landlord must also notify the other contract holders with details of the breach and intention to apply to the court.   

If the tenants have disagreements, they are responsible for sorting them out between themselves. 

What rights do people with separate occupation contracts have?

If you and your housemates have separate contracts with the same landlord, each of you is responsible only for your own rent. This is probably the case even if you share a kitchen or bathroom, particularly if you moved in at different times, or your landlord found each contract-holder individually.  

You may all have different types of contracts and some of you may have more rights than others.  

If you have separate contracts and one of the other contract-holders is causing problems, your landlord may decide to evict her/him. If this does happen it won’t affect your contract.  

Can I add someone to my contract as joint –contract holder?

If you wish to add someone to your contract as joint contract holder, you will need to get your landlords consent first. The law says that your landlord is not allowed to refuse your request without a good reason.

You must put your request in writing to the landlord. 

Your landlord must come back to you within 14 days from the day the request is made. 

If you have made a request in writing to add someone as a joint contract-holder, some things the landlord can consider are: 

• whether the proposed joint contract-holder is suitable 
• the nature of your relationship with the proposed joint contract-holder 

• who could be entitled to take over the contract if consent is given 

For more information about getting the landlord’s consent, please see our advice here.  

What rights do I have if the occupation contract is not in my name?

If you live with one or more people who have an occupation contract with the landlord but you don’t, you may be considered to be a lodger or a sub-holder of the occupation contract holder(s). This means that the person who has made an agreement with the head landlord:  

• is effectively your landlord  
• may only have to give you reasonable notice if s/he wants you to leave (this notice could be a very short amount of time and could be verbal)  
• is responsible for paying the rent and bills. Everyone else should still pay their share, but if they don’t, the person on the occupation contract is ultimately responsible for coming up with the money.  

A contract holder must obtain permission from their landlord to rent a room out to you.

You can read more about sub-letting here.