Managing a House in Multiple Occupation (HMO) involves navigating a complex web of regulations, and for landlords, ensuring compliance can sometimes be overwhelming. This is where a “trusted person” steps in—a vital figure in HMO licencing who takes on the responsibility of managing the property and ensuring it adheres to all legal and safety standards.

In this article, we’ll explore what a “trusted person” is, their essential duties, and the significant legal and financial liabilities they face. Whether you’re a landlord looking to appoint a trusted person or someone considering taking on this role, understanding its implications is crucial to maintaining a compliant and well-managed HMO property.

What is a “Trusted Person” in HMO Licencing?

As it pertains to HMO licencing a “trusted person” refers to an individual or company appointed by a landlord to hold and manage an HMO licence on their behalf. This person may take on the role of ensuring that the property remains in compliance with HMO regulations, particularly when the landlord is not able or willing to manage the day-to-day responsibilities themselves. While it’s common for overseas landlords to appoint a trusted person, this role is applicable to any landlord who seeks assistance in maintaining HMO compliance and operational efficiency.

The trusted person could be a professional property manager, a letting agent, or an experienced individual who understands the complex regulatory requirements of HMO properties. They take on both administrative and practical responsibilities and, as a result, can face significant legal and financial liabilities if the property does not meet the required standards.

Responsibilities of a Trusted Person

The trusted person is entrusted with ensuring that the property meets the legal requirements of the HMO licence. These responsibilities are numerous and involve both the management of the property and its occupants. Below are the key duties that fall under this role:

1. Ensuring Compliance with HMO licence Conditions

One of the primary responsibilities of a trusted person is to ensure that the property complies with the terms set out in the HMO licence. This includes ensuring the property is safe, meets local authority standards, and adheres to all relevant regulations.

For example, this could involve ensuring that the property is not overcrowded, that fire safety measures (such as HMO fire doors, alarms, and extinguishers) are in place, and that the general condition of the property is maintained. Any breach of these conditions could result in legal action or fines, with the trusted person being held responsible.

2. Health and Safety Oversight

The trusted person must regularly check that the property is safe for its tenants. This includes arranging for regular inspections of electrical installations, gas appliances, and fire safety equipment. They must also ensure that proper maintenance is carried out on the property, particularly in common areas that are shared by multiple tenants.

In HMOs, fire safety is one of the most critical concerns. The trusted person must ensure that fire doors are functioning, fire extinguishers are serviced, and emergency lighting is operational. Any failure to meet these safety obligations could lead to severe consequences, including legal penalties and reputational damage.

3. Tenant Management and Relations

The trusted person acts as the primary contact for tenants, addressing any issues related to their accommodation. This may include responding to complaints, dealing with maintenance requests, and ensuring tenants follow the rules laid out in the HMO licence. The trusted person must also handle tenant disputes and enforce the property’s occupancy limits.

If the property is not managed effectively or tenants feel their concerns are being ignored, it could lead to complaints being raised with the local authority, further increasing the potential liabilities of the trusted person.

4. Maintaining Records and Documentation

Accurate record-keeping is an essential part of an HMO’s management. The trusted person must maintain thorough records of all safety checks, repairs, tenancy agreements, and communications with tenants. These records may be required by the local authority during inspections, and any failure to produce them could result in penalties or delays in renewing the HMO licence.

Additionally, documentation such as gas safety certificates, electrical inspection reports, and fire alarm servicing records should be kept up to date and easily accessible.

5. Liaison with Local Authorities

The trusted person serves as the main point of contact between the property and the local council or licencing authority. They must ensure that the property meets all legal requirements, and are often required to provide documentation or grant access to inspectors from the council. This communication is crucial in ensuring that the property remains compliant with the terms of the HMO licence and that any issues are resolved promptly.

If the property fails an inspection or is found to be non-compliant, it is the trusted person’s responsibility to rectify the situation. Failure to do so can result in fines, legal action, or even the revocation of the HMO licence.

Liabilities of a Trusted Person

Being a trusted person for an HMO property comes with significant legal and financial liabilities. While the role offers the opportunity to manage a property and ensure its compliance, it also places a considerable burden of responsibility on the individual or company holding the licence.

1. Legal Accountability

As the holder of the HMO licence, the trusted person is legally responsible for ensuring the property complies with the licence conditions. If the property fails to meet the required standards or if tenants are put at risk due to poor management, the trusted person could face legal action from the local authority. This could include fines, penalties, or even criminal charges in cases of severe negligence.

For example, if a fire were to occur in the property due to inadequate fire safety measures, the trusted person could be held liable for failing to maintain those systems, even if they are not the property owner.

2. Financial Liability

In some cases, the trusted person may be responsible for managing rent payments and other financial matters. If they collect rent, they must ensure these funds are properly managed and allocated according to the landlord’s instructions. Any mismanagement of funds could expose the trusted person to financial penalties or legal claims from the landlord.

Additionally, the trusted person may face tax implications if they handle the property’s finances, particularly if they are collecting rent or paying expenses on behalf of the landlord.

3. Civil Liability

Tenants may pursue legal action against the trusted person if they feel their rights are being infringed. This could involve claims related to unsafe living conditions, lack of maintenance, or failure to address serious issues within the property. As the face of the property’s management, the trusted person can become a target for tenant grievances, even if the underlying issue is the responsibility of the landlord.

Conclusion

The role of a trusted person in HMO licencing is one of great responsibility. They are not only tasked with ensuring that the property complies with all legal and safety standards, but they also bear significant legal and financial liabilities if things go wrong. It is essential for landlords and trusted persons alike to fully understand the responsibilities and risks involved in this role and to ensure that all compliance measures are strictly adhered to.

For those acting as trusted persons, understanding the complexities of HMO regulations, maintaining strong relationships with local authorities, and keeping detailed records are critical to managing the property successfully and avoiding potential liabilities.