The agency (non-disclosed) operated numerous properties on a rent 2 rent basis. Portsmouth City Council started to become suspicious that homes were not licenced and overcrowded which urged them to look into the operating of the agency more closely.
The Council officers tried many times to inspect the properties but initially were blocked as tenants had been advised by the lettings agency to deny access to all Council officers.
Portsmouth Crown Court granted the Council officers warrants to inspect the properties and when doing so, it became obvious that these properties were in fact unlicenced HMO's (Housing of Multiple Occupancy).
The director was sentenced to 200 hours of community service and ordered to pay £144 victim surcharge. The agency itself was fined, £1,000 and ordered to pay over £9,000 to the Council.
What is the key take aways here?
If you are planning on operating a HMO, make sure that you obtain the necessary licences. You will need to speak to your local council to find out what their requirements are.
Make sure that your HMO is not overcrowded as this is against the law.
If you are a landlord and use an agency to help manage your property, make sure you carry out your due diligence thoroughly and ensure they are registered on companies house, as well as, have the proper licences in place.
If you are ever unsure, you can use the PropBubble platform to connect to a variety of property help and
seek the right advice quickly.
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