Upgrades & Utilities - HMOs

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Getting your upgrades and utilities in order is a big part of getting your property ready. Use this guidance to make sure you know what to look out for! This guidance is specifically for HMOs.

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Quotes, Upgrades & Guidance

What is a HMO?

A HMO, or House in Multiple Occupation (also known as a House of Multiple Occupancy), is where 3 or more unrelated people are living as 2 or more households in the property.  

You can find out more about HMOs on the gov.uk website and get information specifically on the licence required by clicking here.

What is a HMO licence?  

From 1 October 2018, a HMO Licence is only required for all HMOs occupied by five or more persons living in two or more separate households (this means two or more unrelated people sharing). If you have less than this number of residents or households, the HMO does not require a licence. NB: Scotland has different HMO licence requirements, please see Scottish section.

Required Upgrades?

These are legally required and extremely important for health and safety.  

These are required for HMOs (except for if your local council does not require emergency lighting).

Do not move residents in until all upgrades are completed.

Getting Quotes

It’s so important to get quotes quickly. You can get provisional quotes even before taking contractor to site, as you can add details, measurements and photos below on these sites:

  • Speak to local contractors, recommendations are always prefered.
  • You will get a really quick response if you post the job on any of the following:
    - My Job Quote
    - My Builder
    - My Workman
  • You can also try Plentific: “Plentific empowers landlords and property managers to deliver more efficient repairs and maintenance services. We do it through a simple, powerful management platform and a network of verified trade professionals.”  

Electrical Periodic Certificate

To be renewed: Every 5 years

  • Target Price: £150
  • Electrician to conduct Periodic Certificate (valid 5 years) day after completion.
  • Schedule reminder to instruct renewal of certificate in 4 years and 11 months time.
  • Repairs if required. Get a quote before instructing.

Gas Safe Certificate

To be renewed: Every year

  • Target Price: £75
  • Plumber to conduct Gas Safe Certificate (valid 1 year) day after completion.  
  • The contractor you use must be on the Gas Safe Register from 1 April 2009.  
  • Repairs if required. Get a quote before instructing.

Fire Extinguishers and Blankets

  • Fre Extinguisher Target Price: £50
    • 9 litre water fire extinguisher, mounted on the wall in the hallway on a bracket. Extinguisher should be dry powder if near the fuse board/electrics.
  • Fire Blanket Target Price: £12
    • Install the fire blanket in the kitchen.
  • Schedule reminder to instruct renewal of certificate in 11 months time.
  • Carry out your own regular visual inspections throughout the year and keep a record.

Some councils advise not to fit fire extinguishers, due to the likely risk to people from staying in a fire situation, or misusing a fire extinguisher. They sometimes advise that the 30-minute fire door rating on rooms should keep everyone safe, and rely on the fire service to deal with the fire. If your council advises this we are happy with you not fitting a fire extinguisher. If the council is not involved please fit a fire extinguisher.  

Fire Detection

To be done by an electrician the day after completion.  

  • Target Price: £75 per detector (supply & fit).  
  • All detectors must be mains wired and interlinked with battery backup as well. (The Fire Brigade advise that for an HMO at least an Grade D LD2 system is required - please do check this with your Local Authority).
  • Heat detectors should be installed in the kitchen.
  • Smoke detectors should be installed on landings & in all habitable rooms (not in bathrooms, storerooms, kitchen).  
  • Optical smoke detector should be installed in the lounge.  
  • You should schedule a reminder to instruct the renewal of the certificate in 4 years and 11 months time in line with the electrical periodic report (typically lasts 5 years).  
    • Please do remember when you instruct the electrician to perform  the electrical periodic certificate that you ask them to also include your fire detection in that check so it is all on the one certificate. This could reduce your costs and stop us having to chase you for a separate fire detection certificate.

Fire Detection Grade A System

  • You are required to install a Grade A system for HMOs that are more than two storeys (more than one above ground) or an area of more than 200 square metres. If that's the case you will be required to produce an annual fire detection certificate, which GP will need to see (please send to certificates@greenpastures.co.uk). Please see below for your requirements for completing a ‘Fire Risk Assessment’ in which this will be one of the areas that you will need to demonstrate that you have taken the appropriate actions.
    • Certain councils defer to the Fire Brigade’s LACORS guidance which has higher requirements for certification. Again please check with your local council.
    • Please also check with the manufacturer of your fire alarm system about what their requirements are for servicing, checking and ultimately certification of the systems so that you are able to maintain full safety compliance.
    • Carry out your own regular visual inspections throughout the year and keep a record. Again please check with the manufacturer as to the frequency of checks that are required.

Carbon Monoxide Detection

Target price: £50 per detector (supply & fit)

  • Detectors can be mains wired or battery operated.
    • If they are mains wired the work should be carried out by an Electrician.
  • Detectors must be in all rooms where solid fuel burning appliances (e.g. log burner, coal fire, etc.) and gas appliances (boiler, cooker etc.) are situated.
  • Detectors should not be mounted on the ceiling (by the time the poisonous fumes reach the detector, they have already reached dangerous levels to breath in).

Emergency Lighting

Target Price: £75 (supply & fit)

  • If your local council website rules on HMOs say conventional lighting is sufficient for escape routes for the size of HMO that GP is buying for you, then emergency lighting is not needed. Go to your council’s website to check.  
  • Emergency lighting is required only on common escapes (so typically landings) and final exits. Stairs & landing need to be adequately lit. The electrician should be able to advise on site per job.
  • For Grade A (blocks of flats) alarmed properties the emergency lighting should be certificated annually, for Grade D (HMO type) 5 yearly certificates will be acceptable.
  • Carry out your own regular visual inspections throughout the year and keep a record.

Locks

Target price: £40-£50 per lock (supply & fit)

Use suited keys (not legal requirement but best practice for when you end up with multiple properties

Use thumb turn locks (see pic) on bedrooms, front door and back door. Not a legal requirement but best practice for easy exit in an emergency. These allow the residents the safest exit from their bedroom as no key is required. Locks can usually be fitted by the same contractor who is fitting the fire doors to avoid additional call-out cost of locksmith.

Fire Doors

Bedrooms

  • Need to be in place within 4 weeks of occupation of bedrooms.
  • Here is an example breakdown of costs:
  • Don't get doors that look industrial, make sure they're veneered or four-panelled

Kitchens, Hallways & Reception Rooms

  • Need to be in place within 4 weeks of the first resident moving in
  • Here is an example breakdown of costs:

Fire Safety Risk Assessment  

A Fire Risk Assessment must be carried out by a specialist surveyor for HMO's with 3 or more residents. A copy of the report should be sent to certificates@greenpastures.co.uk on receipt, and any recommendations on the report must be implemented before residents move into the property.

Legionella Assessment

Please see this link for guidance on how to carry out an assessment and future checks. There is a legal duty for landlords to assess and control the risk of exposure to legionella bacteria, but Health and Safety law does not require landlords to produce or obtain, nor does HSE recognise, a 'Legionnaires testing certificate'.

PAT Testing

If you, as the Partner, own electrical items in the house they must be PAT tested. If electrical items are owned by the resident and will be removed when they leave then PAT testing is not required - it is then down to the discretion of the resident. The Portable Appliance Testing rules are very straightforward, as detailed in the 1989 Electricity at Work Regulations. The regulations state that “All [electrical] systems shall at all times be of such construction as to prevent, so far as reasonably practicable, such danger.”

A visual test includes checking and testing for frayed wires; examining the casing around the appliance to look for damaged or loose fitting; and looking for plugs that appear to be cracked or damaged. This is a specialised process and we would recommend that you use a qualified PAT Testing specialist who will be able to perform tests and checks on a variety of appliances. Once each appliance completes the test, they will be labelled with a safety sticker with a barcode for ease of tracking in the future.

When Property Completes

  1. Contractors doing upgrades enter the building to complete work.  
  2. Ensure the relevant certificate for the works is obtained upon completion of works. Copies of certificates should be posted to GP (see below), and you should keep originals on file.
  3. Record renewal dates for certificates.
  4. Future quotes for renewal of certificates should be sent to GP via the order number system in a timely manner (1 month before expiry of certificate). GP will approve the quote.
  5. Carry out regular safety & condition checks (see GP Annual Property Inspection form - due 12 months after completion)

N.B. Please make sure your electrician and plumber are ready to do the satisfactory Electrical Periodic Certificate & Gas Safe Certificate respectively the day after the property completes.

Payment

You, as the Partner, are responsible for paying for upgrades as these costs are recoverable through the rent sheet income via Housing Benefit. If this is not possible, GP can pay for upgrades and you can then reimburse us once the money for these items comes in through the HB claim - this is extra admin for all sides but speak to your Partnership Manager if this is required.  

Upgrades Checklist

Green Upgrades

Utilities

  • Take the meter readings of gas & electric the day of completion.
  • Notify suppliers of change of tenancy and provide the meter readings.
  • Notify the local water supplier of change of tenancy.
  • Partners are financially responsible for erecting a TV aerial or repairing this in the future.

The best place to go to find a supplier price go to is U Switch or Go Compare

You can find out who the supplier is on-line now, by clicking here.

Process

Partners can hold the gas and electric bills in the name of the organisation and cover the cost through a weekly service charge levied to the residents; or

A key meter option is very expensive and does not allow for the breakdown on the rent sheet of communal and non communal costs.  

Depending on the cost, if there is only one gas appliance (e.g. the cooker), you may wish to consider fitting an electric cooker. This will remove the need for an annual gas certificate. If any gas fires need replacing, you need to have them removed and alternative heating provided (i.e. electric wall mounted heater). Again, this avoids the requirement for the annual gas certificates.

Gas

To set up a Gas account you first need to find out who supplies the Gas to the property, to do this just search for the number for National Grid and they will let you know who is the current supplier. Once you know this search for the number for the company and simply set the account up with the new residents details.  

Electricity

Setting up an electricity account for a new resident is similar to setting up a gas account. The first thing to do is call the MPAN/MPAS service for the part of the country you are in - this can be found by simply doing a search on the internet. Once you have the relevant number call them up and they will tell you the current supplier. Once you know this information, Google the company to get their contact details.

Simply put the account in the organisation’s name and you will be sent bills.  

Water

Use this website to find out who your water supplier is.  

To set up Water, call your supplier and request to have the account name switched over to the new resident. If a water meter is in place then get a reading to give them so that the resident does not pay for water they have not used.  

If a water meter is not in place and the new resident is a single occupant then you must request to have a meter fitted so as to save the resident paying excessive bills. If a water meter cannot be fitted then you can request a ‘single occupier discount’ and this will mean the resident will get a reasonable discount on what would normally be charged.

Please notify the local water supplier of change of tenancy within a week of completion. The resident will then receive a letter confirming their account and including information on alternative payment methods.  

The prices we pay for our water supply are regulated by Ofwat. Every 5 years the water companies suggest new prices and these prices are then reviewed by Ofwat who then decide on a price to suit both the water companies and the consumer. There are a few reasons that water rates have to rise, to cover the cost of renewing water pipes and treatment plants to keep the quality of water at a good level and also to improve the service that the customers receive. Rates do differ between each water company and area. These differences are due to the geographical area which the company covers and the water availability.

There are two ways that you can be charged for your water supply depending on whether your property is metered or unmetered. If you have a water meter, you will only pay for the units of water you actually use and readings are taken from your meter every 6 months. On your metered bill you will usually see the charges under ‘Water supply’ which are charged per cubic metre (220 gallons) of usage. You will also pay a standing charge to cover meter reading and billing services, this is usually a fixed amount each year. If you do not have a meter you will pay a set rate for your water based on the rateable value (RV) of your home in England and Wales or your council tax band if you live in Scotland. These rates also include a standing charge to cover customer services such as billing.

Submitting Certificates

Sending Certificates to Green Pastures

Please make clear copies of the certificates and do one of the following:

  1. Email a legible scan of the certificate to certificates@greenpastures.co.uk; or
  2. Post to: Certificates, GP Administration, 28 Union Street, Southport, Merseyside, PR9 0QE

Please also make sure you keep a copy of each of these certificates for your files.  

Certificates Required  

To see a summary of required certificates please click here. Check the third column to check whether each certificate is required for a HMO or Single-Unit property.

Certificates Administrator Process

  • 1 month before each certificate expires we (certificates@greenpastures.co.uk) will contact you. You remain responsible and should have certificates in hand before being contacted.
  • We will email you a reminder including a screenshot of the validity of each certificate.
  • Your Partnership Manager will be notified by us once a Partner’s certificate has expired and the renewal has not been sent to certificates@greenpastures.co.uk.  
  • Your Partnership Manager will remind you by email.  

Once a certificate has expired we will continue to email the partner regularly until the certificate has been received by her at the Southport Office.