A Portsmouth-based letting agency has been fined for renting out overcrowded and unlicensed HMOs.
An investigation by Portsmouth City Council found that several properties rented by the letting agency were not licensed correctly and overcrowded.
Council officials were refused access by tenants after being told by the agency to not allow access, with a warrant being gained to force entry.
At this point the director of the agency proceeded to harass tenants and seek their eviction without proper process.
This director pleaded guilty at Portsmouth Crown Court to multiple indictments under the Protection of Eviction Act 1977 as well as managing unlicensed HMO, and failure to comply with HMO management regulations.
The director was sentenced to 200 hours of community service and told to pay a £114 victim surcharge over the harassment and eviction offences.
The agency was fined £1,000 and told to pay costs of over £9,000 to the council.
For the offices relating to the properties being unlicensed, the director was personally ordered to pay £19,150 and the agency ordered to pay £5,750.
The homes are now being let and managed directly by the owners, and the tenants have been awarded the equivalent to two months’ rent as compensation.
In sentencing, the judge commented: “You were in a position of power, you held the keys to the roof over their head, they were vulnerable and didn’t know their rights…officers from the local authority were perfectly entitled to enter the property to ensure the occupants’ welfare, something you as a landlord should also have been doing.”
These properties were managed on a rent-to-rent basis, meaning the owner of the homes was not involved with letting the property and let the agency do this on their behalf.
Trade body Propertymark commented on the case and highlighted this as evidence that letting agents require more regulation.
“As well as adapting to new business models, like rent-to-rent, the private rented sector must prepare for the biggest overhaul in a generation when the Renters’ Rights Bill becomes law", commented Propertymark.
“With significant changes to tenancy agreements and eviction procedures, it’s crucial to have competent and qualified professionals managing these complex processes. Ensuring letting agents are adequately trained to navigate the new legislation would secure their role in upholding both landlords’ and tenants’ rights, and their contribution to a fairer and more transparent PRS.”
