Landlord fines: How much are the charges and how do you avoid them?

Five additional implications for landlords who are fined or jailed

Over and above the fine itself, there are five significant things you might not have thought about that could impact you – not only as a landlord, but in your local community, at work and even within your family:

1. Being unable to evict your tenant

In some cases, breaching letting laws could not only result in fines, it could also stop you from evicting your tenant.

Three key breaches where this would apply are:

Failing to give your tenant certain required documents at the start of their tenancy (and keep proof), including:

a copy of the Energy Performance Certificate (EPC)
gas and electrical safety certificates
the Government’s ‘How to rent’ guide
prescribed information for deposits – and you must have protected the deposit within 30 days of receipt

If the tenant has requested a repair on the property and you haven’t responded within 14 days – either made the required repairs or stated what you’re going to do to resolve the problem
Not having secured the correct local licence to let

So it’s important to understand that if you breach certain rules, even if your tenant stops paying their rent, you might not be able to evict them. In that case, you could end up with a double financial penalty: a fine and a non-paying tenant staying in your property.

2. Being placed on a ‘rogues’ register or council website

If you’re caught breaking the law or local rules and regulations for letting, you may be added to an online database of ‘rogue’ landlords, which will depend on where your properties are. In London, you may appear on the London Rogue Landlord Checker (this also applies to agents), which anyone can access. In other areas, some councils will publish the fines they have handed out on their own website, as Oxford City Council does.

In addition, from an insurance perspective, if you don’t abide by some laws, your insurance might even be invalidated. Steve Barnes, Associate Director at Hamilton Fraser Total Landlord Insurance explains:

“It’s essential for landlords to abide by local authority regulations or statutory conditions regarding gas, fire and electric regulations as well as being honest about whether you have had any claims, convictions or CCJs. If not, this could invalidate the policy. In addition, some convictions or claims could increase premiums or worse still, result in a NO quote from insurers.”

3. An unwanted press story

With housing stories a regular feature in the press, any report of a landlord mistreating tenants is always going to attract attention – both locally and nationally. So, if you’re fined by the local council, taken to court or appear on a rogue landlord register, there’s a high likelihood that even small fines will be picked up at a local level. Larger fines, especially if they’re accompanied by a jail sentence, could even go national.

4. Incur further court costs and legal fees

If you end up in court for breaking the law, not only will you have to pay any fine the court imposes, but you may also have to engage and pay a legal company to defend you – on top of any court fees. And, as we’ve highlighted in the media reports above, that could mean you ending up tens of thousands of pounds out of pocket.

5. Banned from being a landlord

As if it’s not enough to be fined, listed as a ‘rogue’ and possibly have your name in lights in the press, if your offence is considered serious enough, you could also receive an order banning you from being a landlord. This penalty, which came into effect in April 2018, also includes your details being published on a specific database of banned landlords that local authorities can access.

Despite the fact that many offences can lead to a banning order – anything from not carrying out appropriate fire safety regulations through to evicting a tenant unlawfully or being violent – the good news is that receiving one is rare. In the first three years since the law came into force, only 39 agents and landlords in England were given banning orders. Nevertheless, avoiding this scenario is clearly a must for any landlords that wants to be successful.