What is HMO:
HMO (House in Multiple Occupation) is a property that is shared by three or more tenants who are not members of the same family. Depending on the exact type of HMO some landlords must have a licence from the council.
HMOs are far more profitable to run than other types of residential lettings.
They require far more time and effort in terms of management.
They require more in terms of initial investment to meet stringent health & safety regulations.
Some types of HMO require the landlord to be licensed by the council
The Housing Act 2004 has introduced strict penalties for failing to comply with HMO Regulations. Currently the fine is unlimited.