A recent tribunal case is a strong reminder of just how quickly things can go wrong when a property isn’t managed correctly.
A London landlord has been ordered to repay £16,685 to tenants after a series of serious breaches at an unlicensed HMO – and it’s the kind of situation that many landlords don’t realise they’re at risk of until it’s too late.
What happened?
The property was being run as a House in Multiple Occupation (HMO) without the required licence under the local council’s scheme.
But that was only part of the problem.
Tenants reported that the landlord:
- Entered the property without notice
- Accessed bedrooms without permission
- Increased rent without proper notice
- Failed to protect their deposits
- Restricted access to communal living space
👉 This is where things start to become serious – tenants have a legal right to quiet enjoyment of their home, and breaches like this can quickly escalate.
Ongoing issues inside the property
It wasn’t just management – there were also significant maintenance and safety concerns.
Tenants experienced:
- Persistent mould
- No adequate fire alarms or smoke detectors
- Cockroach infestations
- Heating that didn’t work for an extended period
Despite being reported multiple times, these issues weren’t properly resolved.
💡 If the property had been correctly licensed, the council would have required these problems to be fixed as a condition of letting the property.
The outcome
The landlord did not attend the hearing and provided no defence.
The tribunal found there was no reasonable excuse for failing to obtain the required licence and awarded a Rent Repayment Order of 90% of the maximum amount – totalling £16,685.
What this means for landlords
If you’re managing your own property, cases like this are worth paying attention to – because the issues aren’t always as obvious as they seem.
Here’s what it really highlights:
Licensing isn’t something to overlook
Rules vary depending on the area, and many landlords aren’t aware when additional licensing applies.
Tenant rights matter more than ever
Things like notice for access and use of space aren’t optional – they’re legal requirements.
Maintenance is more than just upkeep
Problems like mould or heating can quickly become compliance issues if not handled properly.
The financial risk is real
Between rent repayment orders, fines, and potential further claims, costs can escalate quickly.
Why many landlords choose a letting agent
What’s clear from cases like this is that most issues don’t come from bad intentions – they come from lack of knowledge or oversight.
A good letting agent helps prevent situations like this by:
- Making sure your property meets all legal and licensing requirements
- Handling deposits correctly and compliantly
- Managing maintenance issues before they escalate
- Acting as a professional buffer between you and your tenants
- Keeping you up to date with constantly changing legislation
It’s not just about convenience – it’s about protecting your investment.
Final thoughts
Lettings today are far more regulated than they were even a few years ago.
What might seem like a small oversight can quickly turn into a costly legal issue – and in this case, it resulted in a five-figure repayment.
Thinking of letting or reviewing your current setup?
If you’re unsure whether your property is fully compliant – or you simply want peace of mind that everything is being handled properly – it’s worth having a conversation.
At Proceed Property, we work closely with landlords to make sure everything is set up correctly from day one, and stays that way.
📩 Get in touch for a no-obligation chat about your property and how we can support you.
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