Lincolnshire Landlords Electronic Newsletter - Issue 21- Recent court cases
Recent court cases
£30,000 bill for turning home into illegal rental accommodation
A married couple have been fined and left with a bill of over £30,000 for dangerously turning their bed and breakfast property into rental accommodation and leaving tenants with fire, gas and electricity hazards.
South Kesteven District Council prosecuted Roy and Carol Tripp under House of Multiple Occupancy (HMO) legislation for transferring the Black Bull Farm House, adjacent to the A1 in Lobthorpe, into rooms for families and individuals.
Lincoln Magistrates’ Court heard the couple never applied to licence the property as an HMO, allowed tenants to live in makeshift conditions with intermittent electricity supply, exposed electrical plug points and wiring and falsified gas certificates and fire checks.
Complaints were made to the council by a former tenant and warnings received from Trading Standards as to the property’s day to day running.
Despite repeated efforts from 2014 onwards from SKDC advising the couple to complete work at the property and apply for a licence as an HMO, they ignored correspondence and then claimed the tenants had been given notice to leave.
However months later the council’s Environmental Health team found the property still being advertised as rental accommodation on a Facebook page and following more non compliance in 2015, the council initiated legal proceedings.
The couple were found guilty in their absence to two offences under the Housing Act 2004 on February 11 and left with a £12,500 fine each.
They were also ordered to pay costs of £5564.16, totalling a bill of £30,564.16
Presiding magistrate Graham Hall said: “We believe the welfare of people using properties is paramount. There was a blatant disregard for any help offered and we are appalled at the take up of this offer of assistance by the two people concerned.”
SKDC’s Executive Member for Environment Cllr Nick Craft said: “The hefty fine in this case is a warning to homeowners seeking to transfer any property into rental accommodation is they must always to do so lawfully.
“It is critical that landlords work with and inform the authorities and follow the necessary procedures so they and their tenants can be protected.
“Most landlords provide a good service for their tenants in South Kesteven but our officers are here to always determinedly ensure housing law is strictly adhered to.”
Gas safety breaches
Failure to provide gas safety certificates has led to a small private landlord being ordered to serve 240 hours of community service.
Dean Taylor pleaded guilty at Harrogate Magistrates Court to breaching Section 33 of the Health & Safety at Work Act 1974, as well as Section 36 of the Gas Safety Installation and Use Regulations.
Taylor had failed to comply with an improvement notice issued by the Health and Safety Executive for the lack of gas safety certificates for the appliances in his property. During an investigation, another of his rental properties was found to be without a gas safety certificate.
He was issued with 240 hours of community service, as well as costs of £2,767.
After the hearing, HSE inspector Julian Franklin said: “If you rent property out, you must comply with requirements of the Gas Safety (Installation and Use) Regulations, including the need to have a gas safety certificate. Gas appliances should be regularly checked, as faulty appliances can kill.”
Poor conditions and overcrowding
In another case, a landlord has been hit with an enormous bill after letting out a property where there were rats, mould, a lack of fire alarms and fire doors, over-crowding and an illegally-partitioned room.
Liakath Ali will have to pay a total of £67,000 made up of £37,000 confiscation order, £17,500 costs and £12,500 in fines. Tower Hamlets Council took Ali to court over the property in Mile End, London.
Letting agent’s responsibility to accept tenants after reference firm checks
In a landmark case, a landlord has won a court case against a letting agent, after an earlier complaint about the agent to The Property Ombudsman was not upheld. The case is significant for all letting agents and their referencing methods, and where responsibility lies.
The landlord in the case said that the agent supplied unsuitable tenants – despite the tenants having been checked out and deemed satisfactory by a referencing firm. In the case, the referencing firm has a strong reputation, while the agent belongs to ARLA.
The landlord claimed breach of contract under the Sale of Goods and Services Act 1982 by Blue Sky Property, a Bristol firm. Lost rental and the legal costs to evict the tenants cost the landlord over £4,000. There were also repairs needed that cost another £4,000 to put right.
The agent argued that thorough referencing had been done by specialist firm LetRisks, and that the real reason why the landlord suffered a loss was because the tenants’ relationship broke down and they had not adhered to their contractual obligations.
The county court judge said neither the referencing company nor the letting agents had been thorough in the entire referencing process. The agent should have reported to the landlord that one of the tenants had a CCJ against him and should also have requested at least three months of bank statements from both tenants.
The judge found in favour of the landlord, and awarded the landlord the sum owed, plus costs of £520 plus 2% interest.
For further information, http://www.propertyindustryeye.com/landmark-case-over-agents-responsibility-to-accept-tenants-after-referencing-companys-checks/
