In order to operate an HMO, you may need to obtain a license from your local council. The process for obtaining a license and the requirements you need to meet may vary depending on your location. For example councils can apply struct eligibility criteria for
holding and application for 2 and 5 year licence’s. They may also require licence holders and property managers to sit courses as well as undersign strict management operations of HMO’s.

Failure to apply these undertakings as part of your management of your HMO will constitute in fines, banning orders and even in worst cases (interim Management orders), https://www.legislation.gov.uk/ukpga/2004/34/notes/division/6/4/1 where the local authority have the right to take over the management and rents received of your HMO property.

More councils are now adopting “additional” licensing schemes (for smaller HMO set ups), so you must ensure what licencing scheme is currently in place based on the number of occupants in your property, and your city/town. In addition it also important to note that if you are buying a licenced HMO property you cannot transfer the HMO licence in your name. You will have to apply for a new HMO licence. You may also not be able to complete a sale until you have a HMO licenced application submitted based on lending criteria.