There are a range of duties that a Manager of a HMO must observe. Please read the leaflet Duties of a HMO Manager for more information.
1. Criminal offence
If a House in Multiple Occupation (HMO) requires a licence and doesn't have one, then this is a criminal offence.
It could result in an unlimited fine from the Courts or a civil penalty of £30,000.
If you have applied for a Temporary Exemption Notice or if there is a reasonable explanation, the Council may be able to reconsider their action.
2. Rent returned to tenants
No rent is payable for occupation of an HMO which is not licensed and should be. Tenants or Cornwall Council can apply to the Residential Property Tribunal for a rent repayment order. This requires the landlord to pay back any rent collected during the period that the offence occurred.
3. Breach of licence conditions
Conditions are attached to all licenses that Cornwall Council issues.
The HMO licence will state when it comes into force and when it ends (usually 5 years). It will also specify the number of people that can live within the property.
Licence conditions are imposed on the licence holder. Some of them are mandatory (set out in law) and others are at the discretion of Cornwall Council.
4. Mandatory licence conditions
Mandatory licence conditions will include:
- To provide a Gas Safety Certificate to Cornwall Council every year
- To install and maintain smoke alarms in working order. On demand, supply Cornwall Council with a declaration of its safety
5. Discretionary conditions
Examples of discretionary conditions may include :
- Requirement for licence holder to attend training on management of HMOs.
- Restrictions on the use or occupation of parts of the property.
- Restriction on the number of people who can live in a licenced HMO.
If the Licence Holder or Manager allows the property to be occupied by more people than is permitted they maybe fined up to £20,000.
If a Licence Condition is not complied with the Licence Holder or Manager, if prosecuted, may be subject to an unlimited fine. A Civil Penalty of up to £30,000 may be issued as an alternative to prosecution.
Prosecution or Civil Penalty does not mean that Cornwall Council will not use its power to revoke the licence:
6. Varying a licence
A HMO Licence can be varied at any time.
Either:
- by agreement between the Council and the licence holder
- at the request of the licence holder
- where circumstances may have changed since the licence was granted
- where amendments to licence conditions are required.
The Council can not impose higher standards than originally applied. This is except where new amenity standards are prescribed by regulations.
7. Revoking a licence
A licence will end after 5 years, or after the period specified in the licence. Cornwall Council may decide to end the licence before this date in certain circumstances.
For example:-
- the current licence holder no longer has an interest in the property
- where there are repeated and serious breaches of a licence condition
- where the licence holder is no longer considered to be a fit and proper person
When a licence is revoked Cornwall Council must grant another licence or make an Interim Management Order unless the property no longer requires a licence.
8. Death of the licence holder
Following the death of a licence holder the licence ceases to be in force. For a period of 3 months the house is treated as though a Temporary Exemption Notice has been issued. After which a new licence application must be submitted. If ownership is not finalised, a Temporary Exemption Notice must be applied for. This gives a further 3 months to resolve any issues.