A Landlord is obliged to obtain a licence from the relevant Local Authority if the property is:
I) let as a main or only home to at least three unrelated sharers who share a kitchen or a bathroom.
II) Three of more storeys.
III) Occupied by five or more persons who form more than one household.
A tenancy is unable to start without the licence and failure to obtain a licence could result in a fine for the Landlord of up to £20,000.
Guidelines for licenses differ depending on the Local Authority however all regulated HMOs must have a mains fitted smoke alarm with battery back up, a carbon monoxide alarm, a Electrical Installation Condition Report and a Portable Appliance Test.