Court hands record £180,000 bill to owner over HMO failures in properties

A 33-year-old woman has been hit with a record bill over charges relating to four HMO properties.

Leila Amjadi, who runs – or ran – property business Vertu Capital, was found guilty of failing to obtain HMO licences and also of breaches under HMO regulations.

She was found guilty of 35 offences relating to the properties she owned in Selly Oak and Edgbaston, Birmingham.

She was ordered to pay a £85,000 fine; costs of £22,975; a victim surcharge of £170; and financial compensation totalling £22,000 to 11 tenants.

Vertu Capital was also found guilty of 21 offences and was fined £52,000 plus a victim surcharge of £170.

In total, including fines, costs and compensation to her tenants, the court ordered her to pay £182,314.90.

Birmingham Magistrates Court heard that local council officers from Birmingham City Council found 31 breaches of HMO regulations. These included missing fire blankets, inadequate or missing fire doors, and smoke detectors hanging loose from ceilings.

According to Birmingham City Council, Amjadi has over ten years’ experience in the lettings business and was sell aware of the responsibility to obtain HMO licences, having previously made applications.

The judge said that despite significant income from the properties, Amjadi was an unscrupulous landlord who did not care for the safety of her tenants. They had suffered unacceptable living conditions.

After the case Robert James, director of housing at Birmingham City Council, said: “We are delighted with the result of this case.

“This is the largest fine that Birmingham has seen for these type of offences, and it sends out a strong message to all landlords that Birmingham City Council will use all its enforcement powers to ensure that tenants are protected from rogue landlords who neglect their responsibilities.”

Amjadi is also described as a ‘rogue landlord’ in press reports of the case. In November 2014, someone with the same name was ‘warned’ by the industry regulator NTSEAT which only has powers to warn (or ban) estate agents, not private landlords or letting agents.

When EYE reported on the regulator’s warning, a number of tenants posted up comments on the story. Some alleged they had not had their deposits back.

On Companies House, Vertu Capital is described as a business engaged in letting and operating its own, or leased, real estate.

According to Companies House, the firm is in administration with a receiver appointed on March 23 this year.

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2 Comments

  1. TOZ4

    Good! it’s these landlords that need to be weeded out and dealt with.

     

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  2. Miriam

    We have experienced terrible times trying to get the rent back and the deposit for 6 students. The company has gone into administration and I am wondering how we might access the fine as we had lodged a complaint through the courts…

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