HMO entitlement to receive rent

by Readers Question

8:55 AM, 24th March 2015
About 4 years ago

HMO entitlement to receive rent

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HMO entitlement to receive rent

After reading a lot of the articles on this matter I am very concerned. HMO entitlement to receive rent

I have a property that I have let out as rooms since 2006 and after problems with a tenant that has not paid rent the council was called in by her and now I have been informed that I need a HMO license under the new rules.

I have a court date for the tenant for rent arrears, but according to what I have read here she can claim that because of the HMO license I was not entitled to receive rent!

I am attempting to move all the other tenants out in time for the hearing date so the HMO conditions do not apply.

Will I be entitled to payment under mesne profit because she has no contract with me? She never signed any agreement but did pay some rent over the period.

The case has been adjourned from a previous date because I did not have the land registry documentation with me when the judge requested it.

What are my options?

I can apply for the HMO license, but do not wish to get it and wish to let the property out to a single family after this tenant is out.

Thanks

Nick de Jongh



Comments

Mark Alexander

8:59 AM, 24th March 2015
About 4 years ago

Hi Nick

I am sorry to be the one to break this news to you but you need to get yourself some very good quality legal representation here pretty sharpish. You are in far more touble than you think. Ignorance of the law is not a valid defence.

The fines you are facing for not having an HMO licence could run into 10's of thousands of pounds. Furthermore, if your tenants have been claiming benefits to pay your rent, all of this money could be clawed back.

Mesne profits does not apply to the scenario you have outlined.
.

Joe Bloggs

18:39 PM, 24th March 2015
About 4 years ago

i would apply for the hmo licence regardless as it keeps your options open on future lettings and will probably also help with your defence (assuming its not refused).

Nick De Jongh

19:00 PM, 24th March 2015
About 4 years ago

I am going ahead with the preparations and keeping the council agent in the loop with progress regarding getting the correct assessments done. Once all the tenants are out I will cancel everything and start removing some partitioning that will indicate that it will be let as a single family property in the future. The property will not be a financially viable option with the current regulations. There is very little chance that I will ever do a HMO in this property as the neighbours are not very keen on the idea. Thank you for the help and advice, every bit is very much appreciated.

Nick De Jongh

14:42 PM, 14th April 2015
About 4 years ago

Reply to the comment left by "Nick De Jongh" at "24/03/2015 - 19:00":

Thank you for the comments received. I today received a mandatory possession under section 8 grounds 8 . The Judge took into account section 75 and 92.3 and found that a section 8 notice was in order and because the property is a disputed HMO rent is due. The Local authority failed to proof that a HMO existed . So in short there is protection for landlords and the Local authority is not always right. So not as bleak as first thought.

Mark Alexander

14:43 PM, 14th April 2015
About 4 years ago

Reply to the comment left by "Nick De Jongh" at "14/04/2015 - 14:42":

Congratulations, I'm sure a lot of HMO landlords will find this case very interesting indeed!
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