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The law for landlord and tenants is constantly changing. As such
it is vital that landlords make themselves aware of the changes and
review their properties on a regular basis to ensure they are
compliant.
The rules for properties occupied by more than one household
(e.g. student houses or properties rented by the
room to individuals rather than to a couple or one
family) became stricter in October 2018 with more properties
requiring a licence. If more than 3 tenants live in a property and
form more than one household and they share a bathroom or kitchen
facilities then the chances are you will need a licence. These
licenced properties are known as Houses of Multiple
Occupation (HMO) and a failure to apply for and obtain a
licence from the local authority can result in a fine of up to
£20,000 and having to pay rent back to the
tenants.
Furthermore, landlords need to ensure that they keep their
properties in a safe and habitable condition. If a property is not
deemed to be safe or not have relevant gas safety checks then
licences will be refused and fines will be issued. Local
Authorities over the past years have shown that they are proactive
in taking enforcement action against those landlords who have not
complied with their obligations.
In September 2019 one landlord in Lincoln was fined
£40,000 for failing to ensure a property was
safe for the tenants and for not having a HMO licence. The 7
tenants were living in conditions deemed to be dangerous by
the Courts. Failings of the landlord included the ground
floor not having a working fire alarm, the bedrooms not having fire
doors fitted, the stairs were painted with gloss paint and as such
caused a real slip hazard and the bedroom doors could be locked
with padlocks which potentially delayed an escape in an
emergency.
This case follows a similar one in Hertfordshire in May 2019
when a landlord was fined in excess of
£45,000 for failing to have an HMO licence
in place and for not having the correct safety measures at the
property. This landlord claimed by way of mitigation that he was
not a professional landlord but this was not seen as an excuse for
the failings. The Local Authorities and the Courts are strict when
it comes to landlords on the basis that if you are going to rent a
property you and get the benefit of the income you need to ensure
you are complying with the law.
While HMO properties need to be correctly managed, and the
penalties for doing so are significant, there has been an increase
in landlords renting property as a HMO on the basis that they often
yield higher income and are less often completely empty so income
is more reliable. Before you decide this is the right route for you
it is important to check the rooms are big enough as there are
minimum dimensions for bedrooms and that the property is in a
sufficient state of repair.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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