Oxford-based Deja-Ville Room Lets, has been expelled from the PRS scheme and the managing director hit with a £25,000 civil debt after a tribunal found against her. She has now lost her business as a result.

Natividad Lopez De Armentia Najera, operated a rent-to-rent business but failed to make payments to her landlord on a property in Oxford during lockdown as she struggled to find tenants for the rooms. Her business was later expelled from the redress scheme after she agreed to pay compensation to the landlord for loss of rent.

RENT-TO-RENT

Under her rent-to-rent business model, her landlord let 162 Abingdon Road to Deja-Ville Room Lets which then sublet rooms, as it was permitted to do under the lease, and as an HMO.

Despite Deja-Ville Room Lets not needing to join the PRS it had done so “voluntarily” to give clients’ reassurance. But due to the pandemic it had not been possible to sublet all the rooms and Lopez De Armentia Najera failed to pay the rent, leading the landlord to complain to the scheme which found that the rent was payable.

The tribunal found that Deja-Ville was contractually obliged to comply with the scheme whether it was required by law to be a member or not.

The PRS specifically states that its remit includes the hearing of complaints regarding rent-to-rent leases. The parties agreed that following a complaint regarding non-payment of rent, an award of £25,000 was made against Deja-Ville Room Lets by way of compensation.

The total amount of rent claimed was higher but £25,000.00 is the maximum amount permitted under the Scheme.

Natividad Lopez De Armentia Najera has been approached for comment.

Read more about tribunal decisions.