Leading property expert Mishantha Liyanage has outlined key strategies to help landlords managing Houses in Multiple Occupation (HMOs) navigate evolving legislative and compliance requirements effectively.

As CEO of Manchester-based The Mistoria Group and a specialist in the HMO sector, Mr. Liyanage emphasises that increasing enforcement of licensing, fire safety, and tenancy regulations is placing greater responsibilities on landlords.

Regulatory Challenges for HMO Landlords

“Across the North West—from Manchester and Salford to Bolton and Liverpool—landlords must navigate a complex regulatory landscape, including significant legislative shifts such as the Renters Reform Bill,” he explains.

“With councils stepping up enforcement and new policies on the horizon, ensuring compliance has never been more crucial. Over the past 18 months, I have faced multiple challenges related to HMO regulations and tenant management, and I want to share my experiences to help other landlords avoid similar pitfalls.”

Mr. Liyanage stresses that non-compliance is not just a bureaucratic inconvenience—it carries severe financial consequences. Fines for violations can reach up to £30,000 per offence, posing a serious threat to profitability. “Ignorance of the law is no excuse,” he warns. “Landlords must proactively implement strong compliance strategies to protect their investments.”

Key Compliance Challenges and Solutions

Fire & Safety Regulations

“Local councils, such as Salford Council, are enforcing stricter fire safety regulations, requiring landlords to meet higher standards. These include properly fitted fire doors with self-closers, smoke alarms in communal areas, and mandatory monthly inspections. Regular fire risk assessments are essential to avoid fines and ensure tenant safety.”

Variability of HMO Licensing Across Cities

“HMO licensing rules vary significantly across local authorities. Some councils require additional licensing for three- and four-bedroom HMOs, while others impose selective licensing in high-risk areas or enforce strict space and amenity standards. Staying informed about local regulations is critical to avoiding unexpected penalties.”

The Renters Reform Bill & Its Impact

“With the proposed abolition of Section 21 ‘no-fault’ evictions, removing problematic tenants from HMOs will become more difficult, especially given the sector’s high tenant turnover. To mitigate risks, landlords should have well-structured tenancy agreements and clear dispute resolution procedures to maintain operational stability.”

Bedsit HMOs vs. House Share HMOs

“Bedsit-style HMOs require more rigorous fire safety measures due to the increased risk associated with individual, lockable rooms that have separate living and cooking spaces. House-share HMOs, where tenants sign a joint liability agreement, pose a lower fire risk but still require essential safety measures like fire doors, alarms, and escape route protections.”

How HMO Landlords Can Stay Compliant

1. Proactive Compliance

“Rather than waiting for enforcement action, landlords should ensure their properties are fully licensed and meet all local council requirements. Conducting regular fire risk assessments and maintaining detailed inspection records are crucial for both safety and legal protection.”

2. Staying Updated on Local Licensing Laws

“Regulations differ across the UK. For example, Salford has a zero-tolerance policy for compliance failures, while Liverpool requires adherence to Article 4 directives before converting properties into HMOs. Landlords must stay informed to prevent costly enforcement actions.”

3. Strengthening Legal Protection & Risk Management

“A well-drafted tenancy agreement is essential for minimising disputes and rent arrears, particularly with upcoming changes in eviction laws. Seeking legal advice ensures documentation is sound and reduces exposure to legal risks.”

4. Continuous Education and Accreditation

“Landlords and property managers must stay informed to remain compliant. Membership in organisations such as Propertymark or the National Residential Landlords Association (NRLA) provides direct access to updates and industry best practices. Attending training workshops helps landlords stay ahead of evolving regulations.”

5. Investing in Professional Property Management

“Engaging a professional property management company can help landlords handle compliance-related responsibilities, from tenant relations to fire safety checks. Hiring an experienced HMO manager ensures regulatory adherence, while employing a Fire Risk Consultant offers added protection. Additionally, smart technology, such as remote-monitoring fire alarms and electronic door locks, enhances safety and simplifies compliance tracking.”

Navigating a Changing Landscape

Reflecting on his nearly 20 years in the industry, Mr. Liyanage acknowledges that while the HMO market remains profitable, landlords must be more vigilant than ever due to increasing compliance demands, enforcement fines, and stricter licensing requirements.

“I have learned firsthand that taking a reactive approach to compliance can lead to costly consequences. Landlords cannot afford to wait until issues arise. Instead, they must take proactive steps to safeguard their properties, tenants, and financial returns. Seeking expert advice and staying engaged with industry bodies will be key to successfully navigating this evolving landscape.”