Supported living in HMO advice please?

Supported living in HMO advice please?

14:34 PM, 23rd April 2020, About 3 years ago 19

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Hi all, We have an empty HMO and have been approached by a care company who house service users with learning difficulties through the local council. They’re looking for HMO type properties to place service users with live in carers.

We’re completely new to this so wondered if anyone can provide some links/sources/information so we can know the pros and cons + pitfalls and research before making an any agreements.

The agreement would be with the company rather than the service users although I understand that this can still be an issue for buy to let mortgages.

Service users would be young adults with learning disabilities and live in carer 24/7. Company say they would give property back in same condition as at start, would cover any damage costs etc.

How can I go about doing thorough due diligence and referencing for a company like this?

Any advice would be much appreciated.



Neil Patterson

14:35 PM, 23rd April 2020, About 3 years ago

Hi Eli,

Some lenders will consider up to a three year fully repairing lease.

BTL Landlord

20:03 PM, 23rd April 2020, About 3 years ago

Reply to the comment left by Neil Patterson at 23/04/2020 - 14:35
Hi Eli
I have been researching into renting hmos to care companies but to be honest I am at very early stages.
My understanding having spoken to few people is they do not want to Buy their own property and tie up capital.
They are fully set up and qualified to provide the services which is apparently quite difficult due to red tape hence then have contracts with the council’s.
They apparently pay very good guaranteed rent as they receive a high sum per person who are eligible under assisted living , rent is higher than you would receive on the private rental market, no voids, they pay all the bills which you would normally be paying if renting hmo privately and they maintain the property as well.
They take a contract under their company name.
I personally would look into their accounts to see how healthy they are , how long they have been established and trading.
If they are a smaller company you could request a personal guarantee from one of the directors.
Which area is your property located?

Alan Griffin

10:23 AM, 24th April 2020, About 3 years ago

Hi Eli, I have three such properties and the arrangement is perfect, I get a higher rent, no voids, all maintained and insured with no input from me.
The downside is you are not likely to get anymore than a yearly contract as that is as far as they can see with local government, also, no Mortgagors will touch it as no court would give them possession and evict the tenants if in default.

Des Taylor Landlords Defence Ltd

10:53 AM, 24th April 2020, About 3 years ago

It is important to understand what you are doing and who will be staying in the house.

You must understand the liability on you too such as and not limited to:

Mortgage Terms
Agreements - The Type of Agreement between you and the “Tenant” and the Agreement between the “Tenant” and the “Occupiers” and the basis under which their occupation occurs.

Licensing Requirements – HMO Licence or otherwise

Legislation for Health and Safety and Fire Detection and Protection

By the time you have addressed those with the company and their planned occupation, the works they will need to do to comply with the legislation and other matters, you will certainly know from your emotions whether to proceed or to look for another tenant.

Many companies are Rent to Rent Operators and you will need regard to planning legislation and to understand what type of care it is.

Are the residents “Move On” care, are they “homeless care”? etc. Who is providing the occupants to them and what is your recourse in the event that things don’t go as planned?

How will they finance their business and cashflow and how will you get paid?

Are the agreements all correctly more onerous in the right direction?

There are a lot of questions and due diligence.

There are some really great operators out there and if they have all the answers and you can independently verify with them, then you may be on to a real winner.
Take the time and let the opportunity pass if there are too many questions unanswered.

Take the time and discipline to check everything.

Some daytime bedtime reading for you and some links as you asked for.

@landlord licensing and defence

Any information is intended as general advice and guidance. It is not legal advice and should not be taken or relied upon as such. No liability can be accepted for any reliance on the information published in this response. You may wish to obtain independent legal advice if it is needed. Thank you


12:42 PM, 24th April 2020, About 3 years ago

Reply to the comment left by Alan Griffin at 24/04/2020 - 10:23
Dear Alan. I have been trying to locate these type of clients so i m realy interested in knowing which companies do this
Please can contact me on 07719518196 or

Alan Griffin

13:56 PM, 24th April 2020, About 3 years ago

Reply to the comment left by chrisc17cjs at 24/04/2020 - 12:42
Chris, if you google supported living or some other derivative of that for your area you will find something. I would recommend it.

Robert M

14:07 PM, 24th April 2020, About 3 years ago

I provide supported accommodation in Sheffield to homeless people utilising the R2R process, i.e. we lease properties from private landlords. We've been doing this since 2004. This is so very different to simply letting and managing a property, as the provision of support to the residents is integral to the success of the process. As others have already said, it can be a minefield of red tape, and there are both good and bad operators within this market.

We provide supported housing on a not-for-profit basis through our registered and regulated not-for-profit company (housing association), but I am aware of some private operators who claim to do this on a for profit basis (though this would not get them the enhanced housing benefit, so I guess they have a service contract with the council or some other body that covers their profits as well as their costs).

As Des Taylor has indicated, there are an awful lot of questions to ask and issues to consider. If you want a chat about this then drop me a message to and I'll get back to you.

Eli N

15:08 PM, 24th April 2020, About 3 years ago

Thanks for all the replies.

One of the main problems for us would be getting a mortgage as the houses are currently with an investor.

What mortgage companies did you all use and do you know if any of them are still lending under current CV situation? many thanks


15:48 PM, 24th April 2020, About 3 years ago

Please be careful, the term "learning difficulties" is a generic term
used by much of the support industry to describe people with
drug addiction, alcohol problems and those with mental health
issues. Make sure you know exactly who will be housed in the property before you commit. I speak from experience.

Alan Griffin

16:17 PM, 24th April 2020, About 3 years ago

Reply to the comment left by chrisc17cjs at 24/04/2020 - 12:42
Chris it is relatively easy to get a mortgage for a HMO, all be it slightly more expensive than BTL and that’s the way to go, however, if they realise the type of tenants there’s no chance, therefore make a choice.

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