## Identify the property use first
GOV.UK defines a house in multiple occupation as a property occupied by at least three tenants who form more than one household and share facilities. It defines a large HMO as at least five tenants forming more than one household who share toilet, bathroom or kitchen facilities.
Large HMOs need a local-council licence. GOV.UK also says a smaller property may need a licence under a local scheme, so the live council position belongs in the evidence file.
The HMO licence service says each HMO needs a separate licence, a licence lasts for a maximum of five years and renewal is required before expiry.
Licence conditions include sending the council an updated gas-safety certificate each year, installing and maintaining smoke alarms and providing electrical-appliance safety certificates when requested.
The government's [fire-safety duties guide](https://www.gov.uk/government/publications/people-with-duties-under-fire-safety-laws/a-guide-for-persons-with-duties-under-fire-safety-legislation-accessible) says the Fire Safety Order applies to common corridors and stairways in HMOs.
## Use the fair-presentation test
For non-consumer insurance, [section 3 of the Insurance Act 2015](https://www.legislation.gov.uk/ukpga/2015/4/section/3) places a duty of fair presentation on the insured before the contract is entered into.
The Act describes disclosure of every material circumstance the insured knows or ought to know. If that is not done, disclosure must at least give the insurer enough information to put a prudent insurer on notice that further enquiries are needed.
It also requires the presentation to be reasonably clear and accessible. Every material representation of fact must be substantially correct, while a material expectation or belief must be made in good faith.
The controlled HMO pre-check records the actual occupants, households, shared facilities and property use. The legal test above applies to non-consumer insurance.
## Build the property evidence file
The [HMO licence evidence pre-check](/tools/hmo-licence-evidence-pre-check) tracks council checks, planning, room standards, fire safety, certificates and room-rent evidence. It uses occupants, households and shared facilities as inputs and states that council schemes determine the live licensing answer.
The [due diligence checklist](/tools/due-diligence-checklist) separately covers ownership, legal prompts, condition, EPC, tenancy, finance compatibility and document records. It prompts an appropriate condition survey and says the checklist does not itself verify evidence or replace instructed professionals.
## Apply a renewal decision rule
The HMO pre-check uses three evidence states: Ready, Needs Evidence and Stop. A missing occupancy, licence, fire-safety or certificate item remains Needs Evidence.
The pre-check is a screening tool and says the council scheme determines the live licensing answer. The Insurance Act source determines the fair-presentation duty for non-consumer insurance.