Many of our policyholders would be very happy indeed with a monthly rent of £2,8000 on one property. This was not the case with a Battersea landlord who decided that the £2,800 a month he was receiving on his six bedroom property was not enough so he converted it to an eight bedroom house and added £850 to his rental income. The problem was that this rendered the house unsafe, and broke various planning laws.
The landlord had an HMO licence for a six bedroom property but partitioned off a communal area to create two more bedrooms. This meant that there was a fire safety hazard, as well as other planning issues.
The Court ordered him to pay a fine of £5,000 and costs of £3,348.
The rules on Houses in Multiple Occupation are quite complex and any landlord insurance client thinking about entering this market needs to obtain the necessary licence and comply with its terms. Also remember to obtain all the necessary consents before doing any building work. Your local planning authority website is the first place to look.