Importance Of Professional Letting Agents In HMO Issues

The professional expertise of letting agents has been a major factor in an unprecented deal between a local council and 'slum' landlords.

The letting agents, who have received council approval, will take control of three House in Multiple Occupation properties (HMOs), comprising in total 36 rooms after the landlords failed to fulfill their obligations under the law.

Landlords,  Hon Shu Pang, 69, and wife Yeun Ming Pang, 62 of Southend, were facing charges of inadequate management of the properties contrary to HMO licensing regulations at Southend Magistrates Court.

The husband and wife pair would have faced fines and have to repay rent if found guilty of the charges.  Instead, they opted for the landmark deal offered by the council and brokered by the letting agents.  This is reportedly the first time a landlord has surrendered control to a council in an HMO case due to go before the courts.

The couple's son Hawk Mung Pang, of Cotswold Road, Westcliffe, Southend, was fined £3,390 in fines and costs on similar charges at Southend Magistrates Court in September. This was on the basis of him being the designated property manager for the properties.

The family is believed to run several smaller letting properties in Southend that are not subject of HMO licensing rules.

Their legal representatives and the council are in discussions for a letting agent to take over the management of these properties.  It is understood that, under the terms of the arrangement, the Pangs will retain ownership of the properties and receive the balance of rental amounts paid after the deduction of costs of repairs and letting agency management charges.

Anna Waite, responsible for housing for Southend Council, commented: “This is a good outcome because it takes control of these away from the Pangs. Thanks to the agreement we have negotiated with them their tenants will now have new landlords who will ensure necessary standards are adhered to."

Ms. Waite concluded: “Had the court case gone ahead and the Pangs been convicted, they would almost certainly have faced only a modest financial penalty.”

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