Estate agent’s error triggered legal nightmare for landlord
A low-income disability worker was hit with a bill of over £9,000 when three former tenants claimed back the rent they paid during a temporary gap in licensing of the rented property.
The tenants, who had since left the property, had been safe and happy in their home and were never at any risk of harm as a result of the minor administrative error.
Tempted by the carrot of ‘12 months rent free’ dangled in front of them by a national ‘no win, no fee’ claims company, the tenants submitted their claim after being made aware of a short gap between the property becoming liable for licensing and the property owner applying for the licence.
The discrepancy arose when the large chain of estate agents that had been entrusted to manage the property failed to notify the owner that a requirement for Additional Licensing had been introduced by the local authority.
As soon as the owner became aware, the licence was secured.
Despite not being aware of the discrepancy at the time and coming to no harm, the tenants attempted to claim a refund of a staggering £9,000.
The local authority assured the horrified owner that the temporary gap in licensing would not result in any action by them – although legally, they were within their rights to issue a fine. But the tenants, via the no win, no fee claims company, insisted they would press ahead with the Rent Repayment Order regardless.
Unfortunately, as many landlords have discovered to their significant cost, ignorance is not a defence in law. Although the owner had paid the large chain of estate agents to take care of all the legal requirements, that does not absolve the landlord of legal liability. The agents’ failure had resulted in legislation being breached – a criminal offence.
This left the owner facing the threat of a public shaming and significant legal costs, along with handing back the rent the tenants had paid. And, as the landlord relied on a clean criminal record to work with vulnerable people, the public record of this crime (even though there was no prosecution) meant they would have lost their job and possibly their career.
After Landlord Licensing & Defence intervened on the owner’s behalf, the claims company was forced to reduce the tenants’ demands by 35 percent – saving the landlord over £3,000 and keeping their name off the public record.
This circumstances of this case are sadly all too typical. Private landlords who do everything within their power to ensure tenants are safe, comfortable and happy are targeted with punitive measures for minor administrative breaches – often caused by poorly advertised changes in local authority rules.
Luckily, this honest, low-income key worker was able to significantly reduce their bill and keep their name off the council’s register of rogue landlords and out of the public domain. If the Rent Repayment Order had gone to a tribunal hearing, the reputational damage could have been even more costly than the financial loss.
CS1532
