HMO Property After the Landlord Dies: Licences and Obligations

A House in Multiple Occupation (HMO) that requires a licence under Part 2 of the Housing Act 2004 is one of the most complex property assets to administer after a landlord's death. The licensing requirements do not pause for bereavement — the law continues to apply from the moment of death, placing immediate obligations on the executor. This guide explains what must be done, and when.

What Is an HMO and Does It Need a Licence?

A property is an HMO if it is occupied by three or more people forming two or more households, who share basic amenities such as a kitchen or bathroom. There are different categories of HMO, and not all of them require a licence.

Mandatory HMO licensing applies to any property occupied by five or more people forming two or more households, where those people share facilities. This is the national mandatory scheme introduced by the Housing Act 2004 and extended in 2018.

In addition, many local authorities operate additional licensing schemes that cover smaller HMOs — including some that require a licence for three or four occupants. The existence and scope of additional licensing schemes varies significantly between councils. Executors should check with the relevant local authority whether additional licensing applies.

The 28-Day Window: Temporary Exemption Notices

When the landlord of a licensed HMO dies, the licence lapses immediately. The Housing Act 2004 provides a limited mechanism for dealing with this situation. The person managing the property (in this case the executor or administrator of the estate) can apply to the local authority for a Temporary Exemption Notice (TEN).

A TEN lasts for three months. During this period, the property is treated as exempt from the requirement to hold a licence — allowing the executor time to arrange a new licence application or to take steps to dispose of the property.

A second TEN can be applied for, extending the exemption by a further three months. Beyond that, if no permanent licence has been obtained, the property will be operating unlicensed.

The application for a TEN should be made as quickly as possible — certainly within 28 days of the death. Executors should write to the local authority's private rented sector or housing team, explaining the situation and enclosing a copy of the death certificate and evidence of the executor's appointment. Many councils have forms specifically for this situation.

Applying for a New HMO Licence

Alongside or following the TEN application, the executor will need to apply for a new HMO licence in their own name (as personal representative of the estate) if the property is to continue operating as an HMO during administration. Alternatively, the executor may appoint a professional property manager to act as the licence holder.

A new licence application requires:

• Completion of the local authority's application form (each council has its own)
• Payment of the licence fee (typically £500–£1,500, varying considerably between councils)
• Evidence of a current gas safety certificate (where applicable)
• Evidence of a valid Electrical Installation Condition Report (EICR)
• Evidence of fire safety measures: interlinked smoke alarms, heat detectors, fire doors, emergency lighting (where required)
• A floor plan of the property and details of room sizes and facilities
• Details of the proposed licence holder and any manager, including a fit and proper person declaration

If safety certificates have lapsed — which is common where a landlord has been unwell — the executor must arrange fresh inspections before a licence will be granted. The estate bears the cost of these.

Tenants' Rights in an Unlicensed HMO

During any period when the HMO is technically unlicensed — either because the TEN application was delayed or because a new licence has not yet been granted — the tenants' rights are fully protected. Tenants in an unlicensed HMO:

• Continue to hold valid tenancies and cannot be evicted simply because the property is unlicensed
• Cannot be served a valid Section 21 notice (a no-fault eviction notice) while the property is unlicensed — any such notice would be invalid
• May be entitled to apply for a Rent Repayment Order (RRO) against the estate, requiring repayment of up to 12 months of rent paid during the unlicensed period

Rent Repayment Orders are made by the First-tier Tribunal (Property Chamber) and are increasingly used by tenants and local authorities alike. The estate can be held liable even though the licensing failure was not deliberate — the obligation is strict.

The Executor's Ongoing HMO Management Obligations

From the moment of death, the executor stands in the shoes of the landlord for all purposes. This means the executor (or any manager they appoint) is responsible for:

• Fire safety — ensuring alarms are tested, escape routes are clear, and fire safety equipment is maintained
• Gas safety — ensuring the annual gas safety check is carried out and certificates are provided to tenants
• Electrical safety — ensuring the EICR is valid (maximum five years, or less if recommended)
• Repairs — responding to urgent repairs promptly; the same repair obligations apply to an estate-held property as to any rented property
• HMO management regulations — complying with the Management of Houses in Multiple Occupation (England) Regulations 2006, which impose specific duties regarding communal areas, facilities, and the behaviour of occupants

Executors who are not experienced landlords should seriously consider instructing a professional managing agent to take over day-to-day management of the HMO immediately. The estate pays the management fee from the rental income, and the agent can handle licence applications, safety certificates, and tenant communications.

Selling an HMO From the Estate

When the time comes to sell the HMO property — either to a buyer who will continue to operate it as an HMO, or to one who intends to use it differently — the executor should be aware of the following:

• The HMO licence held by the estate is not transferable to the buyer — the buyer must apply for a new licence in their own name before they can lawfully operate the property as an HMO
• The buyer will typically require evidence that the property complies with licensing requirements (valid safety certificates, compliant room sizes, adequate facilities) as part of due diligence
• If any enforcement notices or civil penalties have been served on the property in relation to the previous licensing breach, these should be disclosed to the buyer and will need to be addressed as part of the conveyancing process
• Where tenants are in situ, the buyer purchases subject to those tenancies — the same legal position applies as with any tenanted residential sale

Selling an occupied HMO requires specialist conveyancing solicitors who are experienced with HMO properties. The process is more complex than a standard residential sale, and the estate should budget accordingly.