From a legal perspective, an HMO is a property that’s rented out by at least three people from different households, but who share common facilities in the property like a bathroom or kitchen. HMOs are simply just sometimes referred to as house shares.
It’s important to understand the requirements of owning and renting an HMO property because it could require specific licences and insurance.
HMOs must also meet stricter fire and safety regulations than a simple house share of two people.