HMO tenants withdrew claim after illegally sub-letting
Tenants who attempted to claim back a full year’s worth of rent from their former landlord were forced to withdraw their application after acknowledging they had illegally sub-let part of the HMO they lived in, thanks to the skill and expertise of Landlord Licensing & Defence.
The property owner had the correct licence for an HMO with five tenants. However, the occupants decided to reduce their costs by sharing with a sixth person. Despite creating the licence breach with their actions, they then decided to take advantage of a law which allows tenants to claim back rent in the event of such a breach.
When Landlord Licensing & Defence intervened on behalf of the owner, the tenants were made to withdraw their claim for a refund of almost £35,000.
The regulations related to the management of HMO properties are heavily weighted against owners and managers – a single breach can attract a fine of up to £30,000. However, there’s also a little known regulation that places obligations on tenants, too. And, as with all housing law, any breach is a criminal offence.
This means that tenants, as well as landlords, can be held criminally liable and leave themselves open to large fines if they don’t comply with the relevant legislation related to HMO properties.
On this occasion, the threat of a criminal sanction was enough to make the tenants see sense and withdraw their spurious claim. However, the case illustrates just how important it is for HMO landlords and property managers to conduct regular maintenance checks and inspections.
Ignorance is not a defence in law: even if a tenant creates the breach without the knowledge of the landlord, the landlord is always ultimately responsible. Any landlord who finds themselves in such a situation is advised to get expert help from Landlord Licensing & Defence immediately, as time is of the essence.
CS1607
