HMOs that meet certain criteria must be licensed by the local authority. An HMO requires a license if it has 5 or more tenants, 3 or more storeys, and includes 2 or more households. Local authorities can also designate additional licensing for all HMOs in a particular area if there are issues with poorly managed properties. To obtain a license, a landlord must submit an application, pay a fee, and the property must meet suitability requirements for amenities and the landlord must be deemed a fit and proper person. Failing to license an HMO that requires it is a criminal offense that can result in prosecution or civil penalties.