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Unlicensed Watford HMO costs landlord couple £30,000

A married couple prosecuted by Watford Borough Council for running an unlicensed house in multiple occupation were ordered to pay fines and costs totalling over £30,000 by Magistrates.

Mr Shah and his wife Mrs Geeta Shah of Falcon Way, Harrow bought a four storey house located on Stratford Road, Watford in late 2007 and converted it into an HMO accommodating 12 people.

Environmental Health Officers requested Mr Shah (who presented himself as the person responsible for managing the house) to licence the property on numerous occasions from March 2008. When it was later discovered that Mrs Shah was, in fact, the registered owner she was subsequently also asked to license the property. Although some works were undertaken at the property to improve the safety of the house, including the installation of a fire alarm system, the couple still failed to apply for the required licence.

The continual failure to apply for the licence led to the Council to take legal proceedings against the couple. Both appeared at Hemel Hempstead magistrates Court on 28 April 2010 charged with having control of and/or managing an HMO without a licence.

Mr Shah pleaded guilty to both charges and, taking account of his early plea, was fined £4,500 for each offence and ordered to pay £5,000 towards the prosecution's costs.

Mrs Shah pleaded not guilty, the basis of her defence being that she left the running of the HMO to her husband and was unaware of the situation. Evidence showed that her mortgage was being serviced by the rental income and that she had been aware of the Council's requests for licence. Accordingly, Mrs Shah was also found guilty of both charges and was fined £5,000 for each offence. She was also ordered to pay £6,169 towards the prosecution's costs.

The case highlighted the ongoing successes which councils across the country are having in dealing with rogue landlords, and clearly shows that avoiding licensing costs the landlords dearly.