Renting - when is a 2 bed flat for 3 people an HMO?

jmthoms

Scottish Situation - advice gratefully recevied!
3 people (age19/20) plan to rent a 2 bedroom flat and sign a lease which names x, y and his partner z for a period of 1 year. All 3 are moving from different households to the flat. y and z have been boyfriend and girlfriend for 8 months when the lease is signed. They do not share other financial commitments and do not have previous committments together. The rent is above the going rate for a 2 bedroom flat in the area as verbally but not written communication is the additional charge was for the third person.


Questions

1. should the lease be an HMO lease or joint tenancy
2. what happens to the rental agreement if the relationship between y and z ends
   1. before z moves in but after the lease has started
   2. after z moves in

Many Thanks

davidmcn

HMO licensing requirements only kick in if there are three "households" in the property - a couple sharing a room would count as one household.

The lease remains as a joint lease irrespective of who has moved in or out - if Y or Z want to end their obligations then everyone needs to sort that out with the landlord.

marksoton

jmthoms wrote: »

3 people (age19/20) plan to rent a 2 bedroom flat and sign a lease which names x, y and his partner z for a period of 1 year. All 3 are moving from different households to the flat. y and z have been boyfriend and girlfriend for 8 months when the lease is signed.

All i know is i wouldn't want to be X.......

theartfullodger

jmthoms wrote: »

Scottish Situation - advice gratefully recevied!
3 people (age19/20) plan to rent a 2 bedroom flat and sign a lease which names x, y and his partner z for a period of 1 year. All 3 are moving from different households to the flat. y and z have been boyfriend and girlfriend for 8 months when the lease is signed. They do not share other financial commitments and do not have previous committments together. The rent is above the going rate for a 2 bedroom flat in the area as verbally but not written communication is the additional charge was for the third person.


Questions

1. should the lease be an HMO lease or joint tenancy...

1. The paperwork for the lease will be identical....

   ....what happens to the rental agreement if the relationship between y and z ends...

   Depends on if one of them the leaves or not: If both remain it becomes a HMO additionally....... Regardless of anybody leaving the tenancy/lease continues unless lawfully ended (valid notice or court action or some agreement between EVERYBODY - landlord, all tenants....

...PS What on earth does

as verbally but not written communication is the additional charge was for the third person.

mean?Landlord and tenant(s) can agree such rent as they wish, high or low....

G_M

I'm no expert on Scotland, but the tenancy and the requirement for a property to be registered as an HMO are entirely separate issues.

2 households is not an HMO.

If the relationship fails, then
a) the 3 joint tenants would still be joint tenants until/unless that was changed, by a court or the tenants or mutual consent with the landlord.

b) there would be 3 households, which the local authority might designate as requiring HM licencing

Though in practice it's hard to see y&z continuing to share a bedroom, so a) above is likely to alter things....

davidmcn

Yes, I am assuming y and z probably aren't going to erect a barricade down the middle of the bed and continue sharing the room...

Would help if the OP told us whether they were the landlord, or x, y, z, or maybe w.

marksoton

davidmcn wrote: »

Yes, I am assuming y and z probably aren't going to erect a barricade down the middle of the bed and continue sharing the room...

Would help if the OP told us whether they were the landlord, or x, y, z, or maybe w.

It could get interesting! :eek:

theartfullodger

G_M wrote: »

...................

b) there would be 3 households, which the local authority might designate as requiring HM licencing
...

In Scotland, 3 households is a HMO & requires license:

(So 3 unrelated builders from Bearsden in a single-storey 3-bed bungalow in Banff would be a HMO).
http://scotland.shelter.org.uk/get_advice/advice_topics/renting_rights/houses_in_multiple_occupation_hmos