A private landlord has been left almost £4,000 out of pocket after starting a House of Multiple Occupancy without permission.
Nick Fox ad five tenants living illegally in his Monkston house, Milton Keynes magistrates heard.
Mr Fox opened the HiMO in 2013 and appealed retrospectively for planning permission one month later.
When the council refused permission, he appealed to the Planning Inspector but lost his case.
The council issued an enforcement notice for the HiMO should have closed by July this year. But it was still operating in August, the court heard.
Mr Fox was fined £2,500 and ordered to pay costs of more than £1,200.