Services We Provide in & around Peterborough

Strategic Considerations for HMO Conversions

Getting the strategy right from the start is crucial. Don't just jump into any property. Here’s what to consider before you even pick up a hammer:

Property Selection and Market Research

• Commercial-to-Residential Conversions: Untapped Potential. Think beyond standard houses. Old offices, under utilized retail spaces above shops, even some light industrial units can be goldmines for HMOs. These often come with lower purchase prices and can be structurally ideal for HMO layouts.

• Local Demand: Know Your Tenant. Don't just look at average rents in Peterborough, or your chosen area. Dig deeper into tenant profiles. Are you targeting students near Peterborough University, young professionals working in the city centre, or hospital staff at Peterborough City Hospital? Each group has different needs. For example, near the hospital, think about the needs of rotating medical staff – shorter tenancies, fully furnished, utilities included might be key selling points. Tailor your HMO to the specific demand in your target area.

• Due Diligence: Paperwork is Your Shield. Verify any Article 4 Directions or local restrictions before you buy. Engaging early with your local council is essential, but don't just ask, document everything in writing.

---

Financial and Contractor Considerations

The backbone of any successful build, Let's talk brass tacks:

Budgeting for Contingencies: Expect the Unexpected

It is advisable to budget an extra 8–15% for unforeseen expenses, but from our experience, that can sometimes be a minimum. We've seen projects blindsided by:

• Unforeseen structural issues: Rotten joists, damp, asbestos removal – common in older properties.
• Hidden wiring or plumbing problems: Especially in commercial conversions or older buildings.
• Changes in regulations: Councils can (and sometimes do) update fire safety or building requirements mid-project.
• Material price hikes: Building material costs can fluctuate – factor in a buffer.
• Unexpected delays: Leading to holding costs on bridging loans or lost rental income.

Financing Options: Smart Funding for Smooth Conversions

Explore various funding methods to ensure you have the capital when unexpected costs arise.

• Bridging Loans: Great for quick purchases and conversions, but understand the higher interest rates and have a clear exit strategy to refinance or repay quickly.
• Refurbishment Mortgages: Designed specifically for property renovations and conversions – often a better long-term solution than bridging.
• Leveraging Existing Property Equity: If you own other properties, unlocking equity can be a cost-effective way to fund your HMO project.

Choose Your Own Contractor: Expertise Pays Off

Independent contractors with proven expertise in HMO conversions are generally more cost-effective than estate agencies that add extra fees (we've seen cases with fees as high as 12%!).

When choosing a contractor, you can meet the builders personally before work starts and get a feel for the future working relationship. They will also usually also provide specific advice and guidance on your project.

---

Tell us about your project >>

---

Essential HMO Standards to Consider

Compliance isn't optional; it's the law, and it's about tenant safety and your investment's longevity. Here's a quick-reference table and then we’ll dive deeper:

Requirement	Details
Fire Detection	Interlinked, mains-powered smoke and heat detectors installed in all critical areas (BS 5839 compliant).
Fire Doors	Self-closing fire doors with intumescent seals, minimum 30-minute fire resistance along escape routes.
Emergency Lighting	Appropriately placed emergency lighting along escape routes for safe egress during power failures.
Electrical Safety	Modern sockets and lighting, meeting energy efficiency and safety standards to reduce overload and risk.
Bathroom & Ensuite Standards	Adherence to local guidelines for shared and private facilities, ensuring adequate space, hygiene, and statutory compliance.
Secure Multi-key System	Tenants' individual keys, communal access keys, and master keys with secure key coding for replacements.

Beyond the table, understand why these standards matter:

• Fire Detection: It's not just ticking boxes. Interlinked detectors protect tenants and your investment. Early fire detection minimises damage and could save lives.
• Fire Doors: Self-closing fire doors are non-negotiable. Cheaping out is a false economy and a serious safety risk. Intumescent seals are vital – they expand in heat to seal gaps and prevent smoke spread.
• Emergency Lighting: Tenants need to escape safely in a power cut, even at night. Proper placement along escape routes and in communal areas is key.
• Electrical Safety: Modern, safe electrics aren't just about compliance, they reduce fire risk and lower energy bills for tenants – making your HMO more attractive.
• Bathroom & Ensuite Standards: Sufficient and well-maintained facilities are crucial for tenant satisfaction. No one wants to queue for the shower in the morning. Hygiene is paramount.
• Secure Multi-key - Master Lock Barrels: Security and tenant privacy are essential. A well-managed key system prevents confusion and unauthorized access. Master key systems need to be robust and secure. Regular lock maintenance and key audits are also good practice.

Additional regulatory factors you MUST consider:

• HMO Licensing Requirements: Meets all conditions in the UK Government’s Housing Licensing Guidelines – and your local council’s specific rules.
• Minimum Room Sizes & Occupancy Limits: Local regulations dictate minimum sizes to ensure tenant comfort and safety. Overcrowding is a compliance disaster.
• Ventilation & Heating Standards (BTUs): Adequate ventilation (especially in bathrooms and kitchens) and heating are crucial for compliance and tenant comfort.
• Electrical & Gas Safety: All installations must comply with the latest safety standards to minimise hazards. Regular gas safety checks are mandatory.
• Maintenance & House Health Standards: Regular risk assessments and comprehensive maintenance plans are legally required under the Regulatory Reform (Fire Safety) Order 2005. Don't skip these!

---

Often Overlooked Requirements

It's easy to focus on the big renovation items and sometimes miss the smaller, but equally crucial, details that ensure smooth HMO operation and prevent compliance headaches. Don’t let these slip through the cracks:

Signage: Clear Directions Save Lives

• Emergency Exit Signs: Clearly visible, compliant with BS EN ISO 7010 standards. Make sure they are illuminated if necessary.
• Fire Action Notices: Outlining evacuation procedures and emergency contact numbers – placed in communal areas and ideally in each bedroom.
• Directional Signage: Clearly indicating fire extinguishers, fire alarm call points, and emergency lighting locations.
• HMO Licence Display: Display the HMO licence in a communal area as required by local regulations – usually a framed copy is best.

Communal Responsibilities: Shared Spaces, Shared Rules

• Defined Maintenance & Cleaning: Clearly define maintenance and cleaning responsibilities for communal areas in your tenancy agreements. Create regular cleaning schedules and communicate them to all occupants.
• Notice Board/Digital Display: A prominently displayed notice board or digital display is invaluable. Use it for emergency procedures, tenant responsibilities, contact details, maintenance schedules, and fire safety information.
• HMO Licence & Building Regulation Notices: Post copies of the HMO licence and any relevant building regulation notices in a common area accessible to all tenants.
• Regular Inspections: Regular inspections by the landlord or managing agent are essential to ensure shared spaces meet health and safety standards. Document these inspections, noting dates and any actions taken.

Mandatory Amenities: Beyond the Basics

• Adequate Bathroom & Toilet Facilities: Sufficient in number for all tenants, with a clear division between shared and private facilities where applicable. Consider the ratio of bathrooms to bedrooms and plan accordingly.
• Fully Equipped Communal Kitchens: "Equipped" means more than just a hob and oven. Think about:
  • Sufficient fridge/freezer space for multiple tenants.
  • Microwave, toaster, kettle – kitchen essentials.
  • Adequate worktop space for food preparation.
  • Plenty of storage cupboards for individual tenant food items.
  • Durable, easy-to-clean surfaces.
  • Good ventilation to prevent cooking smells lingering.
• Heating, Ventilation & Lighting in Communal Spaces: Suitable heating, ventilation, and lighting are crucial across all communal spaces for comfort and energy efficiency. Don’t skimp on these!
• Secure Storage: Provide secure and accessible storage for cleaning supplies, tools, and any hazardous materials, if applicable (ensure COSHH compliance for hazardous materials).
• Delineated Communal Areas: Clearly defined communal areas (living rooms, dining areas) maintained to high standards, with regular cleaning and upkeep. Furniture should be durable and appropriate for shared use.

For detailed specifics on these standards, always refer to the UK Government’s HMO Licensing Guidelines and your local council's requirements.

---

• 
• 
• 
• 
• 
• 

A few examples of us at Work.
Before, During & Afters

---

HMO Licensing Requirements and Key Regulatory Insights

Navigating licensing can feel like a maze, but understanding the essentials is key to staying compliant and avoiding penalties.

Licensing Essentials: Stay Ahead of the Game

• Risk Assessments: Ongoing Responsibility. Regular fire risk assessments and comprehensive management plans are not just for initial licensing, they are crucial for ongoing compliance. Review and update them regularly, especially after any property changes or regulation updates.
• Council-Specific Requirements: Local Rules Matter. Each local council may have unique stipulations regarding room sizes, amenities, and safety standards. Peterborough City Council’s rules might differ slightly from Huntingdonshire District Council’s. Always check directly with the relevant council.

Local Authority Guidance: Your Local Contacts

Engaging with local councils early in the process is vital. Here are key contacts in and around Peterborough. Don't hesitate to reach out and ask questions – it's better to be informed upfront.

• Peterborough City Council:
  • HMO Licensing Information: Peterborough Housing & Licensing
  • Contact: Their housing department can advise on licensing and local regulations. Remember it's better to get answers in writing.
• Cambridgeshire County Council:
  • HMO Guidance: Cambridgeshire Housing Services
    East Cambridgeshire HMO Licensing Services
  • Contact: Check with the housing team regarding any specific HMO conversion requirements, especially if your property is in a smaller village within Cambridgeshire.
• Huntingdonshire District Council:
  • HMO and Planning: Huntingdonshire Council
  • Contact: They provide guidance on planning permissions and HMO standards for properties in the district (covering towns like Huntingdon, St Neots, St Ives).
• Leicestershire County Council:
  • HMO Licensing Details: Leicestershire Housing
  • Contact: Reach out to discuss any cross-border regulatory issues if your property is near the boundary areas (relevant if your property is close to the Leicestershire/Peterborough border).
• Smaller Towns (e.g. Oundle, Market Deeping):
  • Local Guidance: For smaller communities, consult with the local district council’s housing department for tailored advice. These may fall under different district councils than the main county councils listed above (e.g., Oundle is in North Northamptonshire Council).

---

Tell us about your project >>

---

Practical Tips for a Successful HMO Conversion

Beyond the rules and regs, here’s how to make your HMO conversion a real success, boosting tenant satisfaction and minimising headaches.

Design and Layout Optimization: Smart Spaces, Happy Tenants

• Soundproofing: Invest in Peace and Quiet. Noise complaints are a major source of tenant turnover in HMOs. Invest in quality soundproofing materials, especially for newly built divider walls. Think about:

  • Acoustic insulation in walls and floors (Rockwool, Celotex Sound Insulation).
  • Soundproof plasterboard.
  • Heavy, solid core doors for bedrooms.
  • Acoustic sealant around door frames and skirting boards.
  • Layout considerations: Communal areas can act as buffers between bedrooms to reduce noise transmission.

• Efficient Use of Space: Maximise Functionality. Optimise layouts to meet minimum room size requirements while maintaining functionality and comfort.

• Clever Space Conversions: Get creative with underutilized areas.

  • Water Closet Transformation: Spare water closets (WCs) can be smartly converted into utility cupboards. Remove the toilet, install stacked washer/dryers – the existing sink becomes a handy utility room feature.
  • Internalized External Cupboards: Block up outside access to old coal or storage cupboards that are part of the internal structure, and convert them into wet rooms or additional storage within a larger room.

• Ventilation is Vital: Don't overlook ventilation in every room, especially bedrooms and bathrooms. Stale air and damp issues are tenant turn-offs and can lead to mould problems. Ensure adequate extractor fans in bathrooms and kitchens, and consider trickle vents in windows for

• Communication and Entertainment: We've seen many Landlords relying on stock - service provider Wi-Fi routers in 3 story properties because the internet was an after thought. Planning ahead can allow for ethernet or access point extenders to be installed for well connected happy clients. This can be done along side other installations meaning less installation costs - for happy landlords. Now tenants wont be taking your time complaining about connection issues.

Project Management and Post-Conversion Best Practices: Run it Like a Pro

• Record Keeping: Document Everything. Maintain detailed documentation of all aspects of the project, including approvals, contractor details, invoices, maintenance schedules, and tenant communications.

• Post-Conversion Management: Streamline Operations. Consider employing professional property management services or using property management software (Landlord Vision, Arthur Online) to streamline rent collection, maintenance requests, tenant communication, and compliance updates.
• Regular Reviews: Stay Ahead of Issues. Schedule periodic inspections (quarterly is recommended) and an annual full review of your HMO management plan. This ensures continued adherence to safety standards, regulations, and keeps tenants happy.

---

Common Pitfalls to Avoid

From our experience, here are some common mistakes we see landlords make during HMO conversions. Avoid these to save time, money, and headaches:

• Skipping Soundproofing: Especially in newly built divider walls. Noise complaints are a tenant magnet.
• Forgetting Ventilation: In every room. Stale air, damp, and mould are not tenant-friendly.
• Furnishing Too Early: Don't furnish before the build is fully complete and signed off. It slows down builders, risks furniture damage, and can delay the overall project.
• Changing Your Mind on Taste (Not Functionality): Mid-project design changes driven by personal taste rather than practicality or compliance can add costs and delays. Stick to the plan once functionality and compliance are locked in.
• Ignoring Existing Pipework/Systems: Don't just patch things up. Check and replace old pipework while floorboards are up. Upgrade old systems (heating, electrics) to handle the increased demand of an HMO from the outset. Installing a second boiler might be necessary for larger HMOs to ensure adequate hot water and heating.

---

Conclusion

Converting an HMO can be complex, but with the right planning, expert execution, and attention to detail, it's a highly rewarding investment. We hope that with this comprehensive guide, you'll be well on your way to creating a compliant, profitable, and tenant-friendly HMO.

Art Deco Property Services specialises in HMO conversions across Ramsey, Peterborough, Stamford, and surrounding areas. From initial planning and design to full build and ongoing compliance advice, we can guide you every step of the way. We understand the local regulations inside and out and have a proven track record of successful HMO conversions.

Ready to discuss your HMO project and get expert guidance tailored to your specific needs?

Contact us today for a free, no-obligation consultation. Let's unlock the potential of your property.

---

---