Southwark Property firm fined for trying to charge tenant too much to end lease
A property firm has been fined £2,000 for charging tenants too much to leave a shared flat.
Portico Property Limited, formerly based in Southwark Street, Southwark, was penalised by housing chiefs because it required a tenant to make a payment of £195 for leaving joint tenancy of a flat, when other flatmates wanted to stay.
Government guidance says that such a charge should not be more than £50.
Agents are allowed to charge more if the amount of their reasonable costs are higher buy any attempt to charge more than £50 must be backed up with evidence of these costs.
Emails sent by the company in June 2021, demanded an upfront: “outgoing/exiting tenant fee” of £195.
The tenant challenged this, asking for evidence of their costs in line with the guidance, which was not provided.
When the tenant said they were going to escalate the matter to the Property Ombudsman scheme and notify trading standards, the company reduced the fee to £50, as a “gesture of goodwill”.
Councillor Darren Merrill, Southwark council’s cabinet member for a safer, cleaner borough, said: “It is disappointing that we had to take action in this case, as the guidance to agents is quite clear.
Thankfully, this tenant knew their rights and refused to pay the banned £195 fee.
However, it should never have been presented in the first instance.
“We are committed to improving standards in Southwark’s private rented sector.
I am pleased that thanks to the work of our trading standards team, this company has been punished for breaching a law that is intended to protect tenants.”
Portico’s website says it has 15 branches across London.
Since the breach occurred, Portico Property Limited has been acquired by the Leaders Romans Group and its registered office has moved to Wokingham in October.
People who are looking to rent, or who are already renting, privately in London, can check and see if their agent or landlord has been fined, as in this case.
Further information on trading standards and the private rented sector can be found on the council website.
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