Sep

£58,000 fine for a first-time offence despite ‘naïve mistake’ – judge

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A landlord family have been slapped with a £28,000 rent repayment order (RRO) and combined fines of £30,000 for a first-time offence of neglecting to licence their HMO.

Colin and Jacqueline Cain were ordered to pay £4,000 each to seven former tenants of their house in Wiggington Road (pictured), York, by a First Tier Property Tribunal after property manager Victoria Cain was fined £20,000 by York City Council and Colin Cain was fined £10,000.

But the fine could have been much worse – the couple were given a 30% discount on the RRO after admitting their ‘one-time’ mistake in not applying for a licence, that they had been badly advised, had tried to reach a settlement with the tenants and that they lacked funds to repay the penalty.

The tribunal also heard that there had been no complaints about the accommodation or management from the tenants or council, and that the Cains were the “very opposite of serial offenders” flouting the law.

One-time offence

“This one-time offence occurred by mistake, through naivety as to legal requirements,” it said.

The seven tenants had sought a rent repayment order of £40,350 for rent paid during the 12-month tenancy from 1st July 2018.

It ruled: “The respondents were not professional landlords with a wider property portfolio. The above findings concerning the respondents’ good conduct and clean history justify a discount to the rent to be repaid.

“The tribunal considers a discount in the order of 15% in each of these areas to be appropriate, giving rise to a repayment of 70% of the total rent.”

LandlordZONE has approached York City Council for comment.

Read the full decision.

Read more about HMO management.

View Full Article: £58,000 fine for a first-time offence despite ‘naïve mistake’ – judge