Two Letting Agents have just been fined by the Magistrates Court after having been found responsible for ‘managing’ properties which were deemed to have needed HMO licences. Both Agents contested that they were not managing the properties and had been employed on a ‘Find a Tenant’ basis only. However, the prosecution argued that within the scope of the Housing Act 2004 if an agent receives funds from a Tenant in relation to that Tenancy, they can be deemed as ‘managing’ the property. Both Agents admitted to receiving the first months rent, but did not continue to collect the rent after this. 

The case came about when it was reported to the Local Authorities of various complaints and a rat infestation. It certainly appears that the Agents were not managing the property so the decision seems fairly harsh and it would not be surprising if the Agents appeal the decision. It does lead to questions of how far Agents duty of care lies. If an Agent is letting a property, whether it is being managed or not, it seems like it should be their responsibility to ensure the property is eligible and fit for letting, including checking HMO Licences if applicable. 

Cobbles Estate Agents are very happy to offer free advice to all Landlord looking at letting their properties. If you are unsure whether you need an HMO or have any other questions, one of your team will be happy to help.