Rent-to-rent company fined £25,000

A property company which crudely converted a three bedroom house into a seven bedroom property which it then let out, has been fined £25,000.

Four Seasons Property Ltd, based in Edgware Road, London, was found guilty of five breaches of the Management of Houses in Multiple Occupation Regulations 2006 at Willesden Magistrates’ Court on 25 November, and was ordered to pay the maximum fine of £25,000, £2,466 in costs and a £120 victim surcharge.

However, whether the fine will be paid remains to be seen. According to the Gazette, Four Seasons Property Ltd was declared insolvent on 18 November. Company Check lists its only current director as Mr Mohamed Ali Abbas Rasool - appointed on 17 November. The previous director was Mr Abbus Rasul.

The prosecution was brought by the Environmental Health Team in Re, the joint venture between Capita and Barnet Council, after officers investigated a complaint about the property in Cleveland Gardens, Cricklewood, in April this year.

It is the first such case to be managed by the joint venture from start to finish. When officers from the Environmental Health Team and the London Fire Brigade visited the house, they found the property’s main bedrooms and living rooms had been subdivided with poorly constructed partition walls.

In the subdivided rooms the partitions were butted right up against the bay windows, with the plasterboard roughly cut out around the radiators meaning a single radiator ran between two rooms. Gaps between the poorly fitted walls posed a fire risk as there was no proper fire and smoke separation.

The modified layout of some of the rooms also meant they were just big enough to accommodate a double bed.

Doors within the property were also found not to be fire resistant, there were no smoke detectors fitted and at the time of inspection the home was rented out to eight tenants.

Managers of rented houses in multiple occupation must ensure that the properties they are responsible for are properly managed, including their design and structural condition. Failure to do so will leave managers liable to prosecution under the regulations, as in this case.

Four Seasons Property Ltd, had leased the house from the owner on the basis of it being let out in what is known as a ‘rent to rent’ arrangement. The agreement with the owner stipulated a maximum of three tenants.

Councillor Tom Davey, chairman of the housing committee for Barnet Council, said: “It is totally unacceptable that tenants renting a property should be put at risk in this way. I’m in no doubt that this prosecution sends out a very clear message to other landlords.

“We are always keen to work with landlords to ensure properties are safe but when that isn’t possible, action will be taken.”