How a Compliance Slip-up Became a £3,500 Nightmare
Via HMO Roadmap
If you’re anything like me, it’s probably true that managing your first HMO was rewarding, but let’s face it, it’s now become a constant juggling act. Between keeping tenants happy, staying on top of repairs, (don’t get me started on contractors) and managing endless compliance paperwork, it’s easy for things to slip through the cracks. And when those cracks lead to fines or legal headaches, they can be costly, both in terms of time and money.
We often think compliance is just about things like Gas Safety (CP12) and Electrical Installation Condition report (EICR) certificates. But in reality, compliance is a complex, ongoing process that involves everything from fire safety to anti-social behaviour to licencing to sending the correct documents to tenants at the right time. Ignorance being no defence, falling behind on any of these can turn what should be a smooth operation into a nightmare.
To put things into focus, let me share a story about one of the landlords we NOW work with, it’s a situation that may hit home for many HMO landlords.
Imagine a busy HMO landlord, let’s call him Henry Sharewell. Henry is constantly juggling multiple properties, managing tenant requests, and working hard to keep everything running smoothly. One day, he realises one of his Gas Safety certificates has expired, yikes! Now, perhaps Henry wouldn’t normally allow that to happen, but we all know how easily something like this can slip through the cracks.
It’s one of those “I’ll get to it tomorrow” tasks, but tomorrow has come and gone. Henry knows he has to fix this quickly, thinking, “No harm done.” Only panic sets in for poor old Henry, because as luck would have it, just as he’s about to sort things out, the local authority suddenly takes an interest in his property and requests to see his certificates: EICR, Gas Safety, and EPC.
Scrambling to avoid fines, Henry rushes to find a tradesman who can issue the Gas Safety certificate quickly. He manages to book someone and for the privilege of a next day service pays over £200, hoping for a quick fix to the problem.
But then, disaster strikes. After paying and receiving the certificate, Henry discovers that the contractor wasn’t Gas Safe registered, making the certificate invalid. Now, he has to go through the entire process again – hiring another contractor, paying out more money, and submitting the correct paperwork.
To make matters worse, despite Henry’s efforts to get his compliance in order, the local authority seized the opportunity to punish him for his error and line their pockets at the same time by slapping him with a £3,500 fine. All that stress, last-minute scrambling, and the out-of-pocket expense for a simple yet easily avoidable mistake wipes out a significant chunk of his profits from the HMO.
What Henry also missed is that a gap in the CP12 record during a tenancy can invalidate a notice in possession proceedings..
The most frustrating part? For roughly the same amount of money, Henry could have hired a specialist property-focused Virtual Assistant for a whole year. They could have handled not only the Gas Safety certificate but also many other time-consuming tasks, sparing him from this costly nightmare.
Why compliance is more than just gas safety
It’s easy to think of compliance as a checklist, but the truth is, it’s far more intricate. HMOs are subject to a range of regulations, and keeping track of all of them can feel like a full-time job in itself. Besides Gas Safety and EICR certificates, here are some other areas where compliance can trip you up:
Licencing: HMOs are increasingly subject to licensing from the local council, which needs to be renewed periodically and standards maintained. If you forget or miss the deadline, fines can be substantial.
Fire Safety: This includes ensuring fire doors, smoke alarms, emergency lighting and fire extinguishers are in working order. Fire safety compliance is crucial, not just for avoiding fines, but for tenant safety.
Health and Safety: HMOs need to meet health and safety standards set by the Housing Health and Safety Rating System (HHSRS). Problems like mould, damp, or poor insulation can lead to enforcement action.
Each of these areas requires attention, and overlooking even one of them can lead to penalties, legal trouble, or worse, putting your tenants’ safety at risk.
And it’s worth remembering that penalties for failing to comply with HMO regulations can be severe, including fines of up to £30,000 per breach, rent repayment orders, or even the revocation of the HMO licence. In extreme cases, landlords may face criminal prosecution, with unlimited fines adding to the financial and legal headaches.
So, how do you juggle all these tasks while staying compliant, avoiding fines, and keeping operations running smoothly? Here’s the hard truth that Henry learnt a bit too late: for about the same cost as a £3,500 fine, you could bring on a property-focused VA for an entire year to handle daily responsibilities that if missed often result in costly mistakes. Adding a property VA to your team can truly be a game-changer.
Here is how a property specialist VA could make a real difference in managing your HMO portfolio:
Stay on Top of Compliance
A property VA can ensure that your compliance deadlines are never missed. Whether it’s Gas Safety, EICR, or EPC certificates, your VA can track renewal dates, schedule inspections, and submit the necessary paperwork on time. No more last-minute panic, and certainly no more invalid certificates.
Proactive Fire Safety Management
Fire safety is critical in HMOs, and a VA can help arrange regular inspections to ensure that all fire doors, smoke alarms, and extinguishers are in working order.
Handle Licensing and Council Correspondence
HMOs often require special licences, and each council can have its own set of rules. The appropriately experienced VA can liaise with local authorities, gather necessary documents, and submit applications or renewals. This ensures that you’re always up-to-date with local council requirements and avoiding unnecessary fines.
Manage Tenant Communication and Maintenance
From tenant queries to maintenance scheduling, a VA can take care of it all. They can arrange repairs, schedule regular property inspections, and even manage tenant disputes all while keeping you in the loop. This ensures that small issues are addressed before they become big problems.
Prevent Time-Draining Oversights
A property VA can keep track of all your compliance documents in one place, proactively reminding you of upcoming deadlines and organising inspections before they become urgent. Add a property specific CRM to the mix and you’re really cooking.
Marketing and Tenant Turnover
One of the constant challenges in managing an HMO is keeping vacancies to a minimum. A VA can assist with marketing rooms, arranging viewings, and screening tenants, ensuring that you have reliable tenants in place quickly.
Running an HMO is a full-time job in itself, and staying compliant with regulations is more than just a once-a-year task. The risks of overlooking even the smallest detail can result in fines, legal troubles, and sleepless nights.
Imagine having someone in your corner who handles the day-to-day administration, tracks compliance, and ensures your HMO runs like clockwork. It’s not just about saving time—it’s about protecting your investment, avoiding costly mistakes, and ultimately running a more profitable, stress-free property business.
If you would like to find out how one of our experienced VA’s can help your business you can book a chat with one of us here.
