HMO vs Standard Letting: Why Your Tenancy Agreement Matters More Than Ever

If you’re a landlord reviewing your tenancy agreements right now, you’re not alone.

From 1 May 2026, the private rented sector is undergoing one of its biggest shifts in decades, with the move away from Assured Shorthold Tenancies (ASTs) towards Assured Periodic Tenancies. This change is prompting many landlords to rethink how their agreements are structured — and for good reason.

If your property is, or could be, a House in Multiple Occupation (HMO), getting this right is even more important.

A Changing Legal Landscape

The transition away from ASTs under the Housing Act 1988 framework means:

• Greater emphasis on ongoing tenancies rather than fixed terms
• Increased focus on tenant rights and compliance
• A need for clearer, more robust contractual terms

At the same time, rules around permitted charges remain tightly controlled under the Tenant Fees Act 2019, meaning landlords must be careful about how costs are structured and recovered.

👉 In short: your tenancy agreement now carries more weight than ever.

What Makes HMOs Different?

In a standard let, a single household rents the whole property. Responsibility is relatively straightforward.

In an HMO:

• Multiple unrelated tenants occupy individual rooms
• Communal areas are shared
• Responsibility is split across several people

This creates a very different management environment, with:

• Increased wear and tear
• Higher utility usage
• Greater potential for disputes
• More complex compliance requirements

Why a Standard Agreement Isn’t Enough

A standard tenancy agreement simply doesn’t go far enough for HMOs — particularly in the current regulatory climate.

It won’t properly deal with:

• Shared responsibility for communal areas
• Control of guests and additional occupiers
• Utility usage where bills are included
• Fire safety compliance
• Access for inspections and maintenance

As legislation evolves, these gaps become more significant — and more risky.

What a Modern HMO Agreement Needs to Do

With the shift to Assured Periodic Tenancies, agreements now need to be more operationally robust, not just legally compliant.

A well-structured HMO agreement should clearly define:

• Individual vs shared responsibilities
• What is included within the rent (including utilities and council tax where applicable)
• How excessive usage is managed
• Expectations around safety, behaviour, and access

👉 This isn’t just about legal protection — it’s about making the property manageable day-to-day.

The Risk of Getting It Wrong

Without the right structure in place, landlords may face:

• Difficulty managing unauthorised occupiers
• Disputes over cleaning or damage
• Rising utility costs with no clear recovery route
• Challenges carrying out safety checks
• Increased exposure to compliance issues

With the legislative changes now in effect, these risks are only increasing.

How Goldsmith Property Can Help

At Goldsmith Property, we’re already helping landlords adapt to this new landscape.

We combine:

• Practical experience managing HMOs
• Up-to-date knowledge of legislative change
• Robust, compliant tenancy agreements

So you can be confident your property is protected — now and in the future.

Speak to Us

If you’re reviewing your tenancy agreements or considering letting your property as an HMO, now is the time to get things right.

Visit www.goldsmith-property.co.uk or contact info@goldsmith-property.co.uk to find out more.

Because in a changing market, the right agreement makes all the difference.