As a landlord, it’s natural you want to maximise your rental income; turning your property into an HMO is an excellent way to achieve that. However, the laws governing properties let on a room-by-room basis can be complex.
Each HMO must demonstrate it complies with local and national HMO legislation, which increasingly requires an individual license for every HMO. Landlords who fail to comply can be fined up to £5,000 per offence, which can quickly mount up if you are found to be in violation of multiple regulations or repeat offences. Your tenants can also ask the courts to request a rent repayment. And if you are found to be renting an unlicensed HMO, the fine is unlimited.