🚨 Specialist HMO Agency Fined £66,500 – Could This Happen to You?

A recent prosecution reported by The Negotiator revealed a shocking case: a specialist HMO lettings agency fined £66,500 for leaving tenants in unsafe conditions.

Despite branding themselves as HMO experts, inspectors found:
✅ Missing or broken smoke alarms
✅ Damaged fire doors
✅ Unsafe electrics
✅ Overall dangerous conditions placing tenants at risk of death or injury

This landmark case highlights a stark reality for landlords: choosing the wrong agent can cost you thousands — or even your livelihood.


🔍 A Closer Look: What Happened in the £66,500 HMO Fine Case?

According to council reports:

  • Inspectors found the property dangerously non-compliant.
  • Tenants were unaware of the risks until an unrelated inspection flagged immediate hazards.
  • The agency, which managed multiple HMOs, failed to meet basic fire safety and electrical standards.
  • The local council pursued both the agency and landlord, with the agency fined £66,500 for serious breaches of the Housing Act and HMO Management Regulations.

What’s most shocking is that this wasn’t an inexperienced manager — it was a lettings agency marketing themselves as HMO specialists.


⚠️ What This Means for You as a Manchester Landlord

This case sends a clear message: local councils are not hesitating to prosecute, even when properties are managed by professional agents.

✅ If your agent fails to keep your property safe, it’s still your name on the deeds — and your finances, reputation, and future that are at risk.

✅ Fines can exceed £30,000 per offence, and multiple breaches can quickly spiral into six-figure penalties.

✅ Rent repayment orders could force you to repay up to 12 months’ rent to tenants.

✅ You risk invalidating insurance, getting a criminal record, or facing banning orders that stop you from renting out properties altogether.


🛑 The Hidden Costs of Poor Management

A fine like £66,500 isn’t the only risk. Here are hidden costs landlords face when their property management falls short:

🔸 Lost Rent — Empty properties while work is done to meet standards.
🔸 Legal Fees — Solicitor costs to fight enforcement or tribunal proceedings.
🔸 Emergency Repairs — Fire doors, alarms, and rewiring at short notice can cost thousands.
🔸 Reputational Damage — Negative press coverage makes it harder to attract quality tenants.
🔸 Higher Insurance Premiums — Some insurers will refuse to renew cover after a major safety breach.
🔸 Tenant Compensation — Tenants may sue for injuries, health issues, or stress caused by unsafe conditions.


🏠 Why Many HMO Landlords Are Unknowingly at Risk

Even responsible landlords can end up in court if they or their agent don’t understand the rules. Common reasons include:

HMO Licensing Confusion
Landlords often think only large student houses need HMO licenses. But under Additional Licensing Schemes in Greater Manchester, three unrelated tenants sharing a kitchen or bathroom can turn a property into an HMO requiring a licence.

Outdated Safety Certificates
Many landlords forget electrical safety certificates (EICR) must be renewed every five years, and gas safety certificates annually. Out-of-date documents are a common cause of enforcement.

Inadequate Fire Precautions
Landlords are responsible for:

  • Fire doors with working closers.
  • Interlinked smoke alarms on every floor.
  • Heat detectors in kitchens.
  • Emergency lighting in some HMOs.
    Even if an agent misses these requirements, the landlord bears ultimate responsibility.

Changes in Council Licensing Zones
Selective licensing areas are expanding across Manchester and Salford, often with little publicity. A property that didn’t need a licence two years ago might need one now — and landlords often don’t realise until they receive a fine.


📈 The Regulatory Landscape: Why Compliance Is Harder Than Ever

In 2025, local councils across Greater Manchester are:

  • Increasing inspections.
  • Expanding selective and additional licensing zones.
  • Relying on fines and licensing fees as revenue sources.
  • Using council tax data, utility records, and online listings to proactively identify unlicensed properties.

Salford’s recent report of £500,000+ in fines issued to landlords shows enforcement is only accelerating.


✅ What Full HMO Compliance Really Looks Like

Many landlords think compliance means getting a licence once — but the reality is much more involved. Proper HMO compliance requires:

📝 Licensing

  • Mandatory HMO licence (for properties with 5+ tenants).
  • Additional or selective licences (depending on council schemes).

📜 Certificates

  • Gas Safety Certificate (renewed every year).
  • Electrical Installation Condition Report (renewed every 5 years).
  • Energy Performance Certificate (renewed every 10 years).

🔥 Fire Safety

  • Interlinked smoke and heat alarms.
  • Fire doors on all bedrooms and escape routes.
  • Fire blankets in kitchens.
  • Clear escape routes free from obstructions.

🏗️ Property Standards

  • Adequate kitchen and bathroom facilities per tenant numbers.
  • Sufficient space per bedroom (minimum space standards vary by council).
  • Proper heating, ventilation, and insulation.

📑 Management Practices

  • Legally compliant tenancy agreements.
  • Deposit registration with an approved scheme.
  • Right to Rent checks on all adult tenants.
  • Timely repairs and maintenance.

📆 Ongoing Inspections

  • Routine inspections at least every 3–6 months.
  • Records kept of issues and repairs.
  • Updates to tenants about safety precautions.

 

🛡️ How Let Me Manchester Keeps Landlords Compliant and Profitable

At Let Me Manchester, our compliance-first approach gives landlords peace of mind:

✔️ Portfolio Audit
We check all your properties for licensing obligations and compliance gaps.

✔️ Licence Applications
Our team handles the paperwork and liaises with councils, so you don’t have to.

✔️ Safety Upgrades
We arrange certified contractors for fire doors, alarms, and other compliance work.

✔️ Tenant Management
From referencing to deposits and inspections, we manage everything legally and transparently.

✔️ Regular Inspections
Our detailed reports catch issues early, keeping you and your tenants protected.

✔️ Ongoing Advice
We stay on top of changes to local licensing schemes and regulations — so you don’t have to worry.


🗣️ Common Misconceptions About HMOs and Compliance

Myth 1: “My agent says I don’t need a licence.”
Agents don’t make the rules — councils do. Always confirm licensing requirements directly or with a trusted compliance expert.

Myth 2: “I already have a licence, so I’m safe.”
Licences must be renewed, and property standards maintained throughout the term. One expired certificate can invalidate your licence.

Myth 3: “My property isn’t an HMO if it’s only three tenants.”
In many parts of Greater Manchester, three unrelated tenants sharing means your property needs an additional HMO licence.

Myth 4: “I can fix problems after an inspection.”
Councils can issue fines immediately upon discovering breaches, without giving time to fix issues.


🔥 The Real Cost of Non-Compliance: Beyond the Fine

The £66,500 fine in the recent case is just the start. Additional costs can include:
💸 Legal fees for defence or tribunal representation.
💸 Costly emergency work to meet safety requirements.
💸 Rent repayment orders returning months of rent to tenants.
💸 Higher insurance premiums or refusal of cover.
💸 Lower resale value due to reputational damage or licensing issues.
💸 Emotional stress and time lost fighting enforcement.


🏠 Don’t Gamble with Your Investment – Choose Compliance-First Management

The recent prosecution proves that even so-called “HMO specialists” can fail landlords. But with Let Me Manchester, you get:
✅ Local experts who know Manchester & Salford licensing inside out.
✅ Transparent processes that put your compliance first.
✅ A team dedicated to protecting your investment, your tenants, and your peace of mind.


📞 Contact Let Me Manchester Today

Ready for stress-free HMO management? Want a free compliance audit of your properties?

👉 Call us on 0161 850 1112 to book your free, no-obligation consultation.

Because in today’s market, hoping you’re compliant isn’t enough — you need to know you are.


🗝️ Key Takeaways

✔️ Even “HMO specialists” can fail — costing landlords tens of thousands.
✔️ Councils are stepping up enforcement across Greater Manchester.
✔️ Fines of £30,000+ per offence, rent repayment orders, and reputational damage are real risks.
✔️ Compliance is a continuous process — not a one-time checkbox.
✔️ Let Me Manchester gives landlords peace of mind with compliance-first property management.

 

Categories: Landlord