15 July 2019 Case summary by Phil Turtle, Landlord Licensing and Defence.

A rent-to-rent company fined £12,025 including costs by way of Rent Repayment Order in addition to £5,000 Civil Penalty Fine for failing to Licence the property which had become an HMO through sub-letting via a rent-to-rent company.

The Landlord and owner of the leasehold flat (Mr E.) had let the flat through a letting agency to a Company (which looks to be a rent-to-rent operator) on a 12 month contract using an AST incorrectly (AST’s are for people, not companies.)

The rent-to-rent company then let a room each to four tenants using licences.  

The rent-to-rent company had already been fined £5,000 by Greenwich Council for failing to have an HMO licence.

It seems the property was also the subject of a prohibition order in relation to the creating of an inner bedroom by the rent-to-rent company which had been declared a HHSRS Category 1 Hazard – one presumes because being an “inner room” it had neither windows not direct light and ventilation.

In this case, neither the landlord owner not the letting agent were found against as neither of them collected the rent from the tenants. 

You can read the full First Tier Tribunal decision (if you like wading through legal stuff) here