The Top 5 Mistakes HMO Landlords Make in Greater Manchester — and How to Avoid Them
Managing a House in Multiple Occupation (HMO) in Greater Manchester can be a lucrative investment — but it also comes with a long list of legal obligations and operational challenges. Whether you’re a seasoned landlord or just starting out, avoiding costly mistakes can make all the difference between a high-yield asset and a legal headache.
At Let Me Manchester, we work with HMO landlords every day. Here are the top five mistakes we see — and how you can avoid them.
1- Ignoring Local Licensing Requirements
Each local authority in Greater Manchester has its own set of rules when it comes to HMO licensing. Whether your property needs a mandatory, additional, or selective licence depends on its size, number of tenants, and exact location.
Why it matters: Failure to licence your HMO properly can lead to heavy fines, rent repayment orders, or even prosecution.
How to avoid it: Always check with the local council where your property is based. Alternatively, partner with an agent like Let Me Manchester that can manage your licensing applications and renewals for you.
2- Poor Fire Safety Compliance
Fire safety in HMOs is non-negotiable. Many landlords underestimate the requirements or rely on outdated systems.
Why it matters: A missed fire door or faulty alarm system could not only invalidate your licence but also put lives at risk. Don’t believe us? This tenant is only alive today thanks to the safety features in the property and his quick thinking fellow tenants.
How to avoid it: Ensure your property has interlinked smoke alarms, fire doors with closers, emergency lighting (where required), and up-to-date fire risk assessments. We offer HMO-specific compliance checks to ensure you’re always covered.
3- Overcrowding the Property
Cramming in too many tenants to maximise income can backfire badly.
Why it matters: Overcrowding is a licensing breach and makes tenant disputes, property damage, and wear-and-tear more likely.
How to avoid it: Respect the licensed occupancy limit and make sure each room meets the council’s minimum space standards. If in doubt, speak to us before converting lounges or dining rooms into extra bedrooms.
4- Choosing the Wrong Tenants
A bad tenant can make managing a HMO ten times harder. From missed rent to anti-social behaviour, the impact on other housemates (and your sanity) can be massive.
Why it matters: One problematic tenant can cause voids, damage your reputation, and even result in licence breaches if the council gets involved.
How to avoid it: Always carry out full tenant referencing, including credit checks, employment verification, and previous landlord references. We use a rigorous tenant selection process to protect your income and your property.
5- DIY Property Management Without Systems
Trying to manage everything yourself without proper processes can quickly become overwhelming.
Why it matters: Missed inspections, rent arrears, or non-compliance issues often happen because landlords are spread too thin.
How to avoid it: Invest in reliable property management software or better yet, work with a specialist HMO agent (like us!) who already has the systems, experience, and contacts in place to run your HMO smoothly and profitably.
Final Thoughts
Owning a HMO in Greater Manchester can be one of the best investment moves you make — but only if you treat it like a business and stay compliant every step of the way.
If you’d like help avoiding these mistakes, or just want a no-obligation chat about your current property, feel free to get in touch. At Let Me Manchester, we’re here to make HMO letting simple, legal, and profitable.