What happens if you let a property that needs a licence without applying for one?

Unless you want a criminal record, please obtain a HMO Licence.

Failure to obtain a licence where required can have the following consequences:

1. A criminal offence is committed. Plymouth City Council can prosecute you, and if found guilty, you will have a criminal record.
2. You will also face the prospect of an unlimited fine. The highest penalty we are aware of is a Birmingham landlord who had a fine over £180,000 for breaches relating to HMO Licences.
3. Rent Repayment orders. If you rent a home without a licence, your tenants can claim for a rent repayment order for up to 12 months’ rent, depending on the length of their tenancy.
4. If the property does not have a licence when it should, a valid Section 21 notice can not be served on the tenants.
5. Management Order. If the local authority feels there is no prospect of a licence being obtained, then they can make an interim management order and take over the house concerned.

I hope you agree that obtaining a Licence is the best course of action.