Top 5 Mistakes York Landlords Make with HMOs (and How to Avoid Them)

The York rental market is thriving, with Houses in Multiple Occupation (HMOs) continuing to offer some of the strongest returns for local landlords. With a large student population and increasing demand from young professionals, it’s easy to see why so many landlords are converting properties into HMOs.

But managing an HMO comes with unique responsibilities and challenges – and even experienced landlords can slip up. At Pycroft Property Management, we regularly see the same mistakes being made, often costing landlords time, money, and unnecessary stress.

Here are the top 5 mistakes York landlords make with HMOs – and how you can avoid them.

1. Not Understanding HMO Licensing Rules

York has strict rules around HMO licensing. If your property is let to 5 or more tenants forming more than 1 household, and they share facilities like a bathroom or kitchen, it’s a licensable HMO.

Many landlords don’t realise they need to apply for a licence with City of York Council – or they underestimate how rigorous the requirements are. Without one, you could face hefty fines and even legal action.

How to avoid it: Always check whether your property needs a licence and ensure your application is approved before tenants move in.

2. Ignoring Fire & Safety Standards

HMO landlords have a legal duty to ensure properties meet enhanced safety requirements, including:

• Fire doors and smoke alarms

• Emergency lighting (in some cases)

• Adequate escape routes

• Regular gas and electrical safety checks

Cutting corners not only puts tenants at risk but also exposes you to significant legal penalties.

How to avoid it: Work with professionals who understand HMO regulations and keep compliance at the top of your checklist.

3. Poor Tenant Management

HMOs can be trickier to manage than single lets. Different tenants with different lifestyles can lead to disputes over noise, cleaning, or shared responsibilities.

How to avoid it:

• Vet tenants carefully.

• Set clear expectations in tenancy agreements.

• Carry out regular inspections and be proactive with communication.

A well-managed HMO keeps tenants happy and reduces turnover.

4. Underestimating Maintenance Costs

With more tenants using shared spaces, HMOs naturally experience more wear and tear. Landlords often underestimate how much needs reinvesting into maintenance and upgrades.

How to avoid it: Budget for ongoing maintenance from the start, and factor in regular redecorations or appliance replacements.

5. Failing to Maximise Rental Potential

Many York landlords miss out on income because their HMOs aren’t designed with tenants in mind. Poor layouts, outdated décor, or a lack of amenities like high-speed broadband can make rooms harder to let – or reduce what tenants are willing to pay.

How to avoid it:

• Design rooms with functionality and comfort in mind.

• Consider ensuites for premium rent.

• Modern, stylish interiors go a long way in attracting the right tenants.

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Final Thoughts

HMOs in York can be highly profitable, but they also require careful planning, strict

compliance, and proactive management. Avoiding these five common mistakes is key to protecting your investment and keeping tenants happy.

At Pycroft Property Management, we specialise in managing HMOs across York – from compliance and tenant management to maintenance and maximising rental returns.

👉 Learn more about our HMO management services here: HMO Property Management in York