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tenant not paying rent in an unlicensed hom

Started by kailing2023, December 22, 2023, 01:03:33 AM

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kailing2023



so my uncle has one property (owned outright without mortgage) being let out as unlicensed HMO ( large 9 bed with 2 kitchen and 4 bathrooms). I help to find tenant but he receives rent directly from the tenant.  It is good standard but he simply didn't do fire door etc, not perfectly regulated met (I can understand because he only speaks little english).

Anyway one tenant was always late on rent payment for almost 2 years ( like paying by end of the month when everyone is paying on the 1st), now this month he is even refusing to pay by asking 'nicely' if rent can be write off as heater isn't working in him room. we know it is a lie and I just got lost of control a bit.  The police was called on scene but obviously it is more of civil depute but then the tenant vowed to sue us to court etc.

He is saying that we should compensate him rather than asking for rent, and that he is sick and not being able to go to work etc.  I think it is completely out of control now, any idea what can be done here? to minimize the harm?


Riptide

I'm with you on this, how can your Uncle be expected to install things like fire doors or stick to the regulations if he speaks little English? Those sorts of things should only be expected to be done by English speakers who follow the law and regulations.

Can't you just explain that he provides sub standard accommodation at top prices with minimal costs and all his involvement is is to collect the rents as the landlord and make copious amounts of money out of un-suspecting tenants?

HandyMan

Quote from: kailing2023 on December 22, 2023, 01:03:33 AMany idea what can be done here? to minimize the harm?

To minimise the harm to the tenants?

Where shall we start...

heavykarma

Your uncle has managed to learn enough English to buy a property and get it fitted out for tenants,but you are claiming he does not understand the legal duties? You know he is acting illegally,so why have you not acted on his behalf and got this sorted out? What about smoke alarms,gas inspections,EPC,deposits etc? Who deals with his tax accounts?

You sound like a pair of greedy bullies,and I hope the tenant reports you to the authorities.I can only imagine you select your tenants carefully.because I am surprised you have got away with this so far. I   

David

Your Uncle should get the property licensed immediately to reduce the impact of an application for a Rent Repayment Order.

Depending on the location in the UK, the Council are likely to charge him £500 to come inspect the property and in some areas another £1500 if they have to write a long report, this is especially true of fire issues.  He is likely exceeding all kinds of rules because of the size of the property, he may not have got planning permission for the extending the property (something I find very common).

Ignorance is no excuse for breaking the law and we don't give lack of language as an excuse either, from what you said he seems to prefer to not comply with the law, not pay for the professionals he needs and seems to have a complete disregard for the Tenants health and safety.

You can currently expect a minimum of 65% Rent Repayment of 1 years rent, this will change when the Rent Reform bill gets passed when it will return to 100%.

As your Uncle does not seem to think the law applies to him then one can assume he has failed to protect the deposits of 9 Tenants, each with say at least 2 tenancies if they became SPT, so 6x the deposit for each Tenant.

If your Uncle failed to carry out Gas Safety inspection he could be facing more fines and it acts as a reason to increase the multiplier in other sanctions and fines.

Your Uncle can't evict these Tenants without fault (S21) and any Council will advise them of the above.

If you or your Uncle have made any prohibited charges under the Tenant Fees Act 2019 then these will need to be repaid.

If you fail to provide proper heating then the Landlord & Tenant Act will provide punishment.

If you fail to keep the rooms free from mould then the Homes Fitness for Habitation Act will provide punishment.

The best thing to avoid more damage is to get in front of this, stop doing things on the cheap and rectify ALL of the failings.  You will still face the potential of the above fines and sanctions, it is just they may be lower if you are seen to be resolving your delinquent management of the property.






Quote from: kailing2023 on December 22, 2023, 01:03:33 AMso my uncle has one property (owned outright without mortgage) being let out as unlicensed HMO ( large 9 bed with 2 kitchen and 4 bathrooms). I help to find tenant but he receives rent directly from the tenant.  It is good standard but he simply didn't do fire door etc, not perfectly regulated met (I can understand because he only speaks little english).

Anyway one tenant was always late on rent payment for almost 2 years ( like paying by end of the month when everyone is paying on the 1st), now this month he is even refusing to pay by asking 'nicely' if rent can be write off as heater isn't working in him room. we know it is a lie and I just got lost of control a bit.  The police was called on scene but obviously it is more of civil depute but then the tenant vowed to sue us to court etc.

He is saying that we should compensate him rather than asking for rent, and that he is sick and not being able to go to work etc.  I think it is completely out of control now, any idea what can be done here? to minimize the harm?