Property company boss hit by big fine six years after offences

A property firm which admitted misleading tenants on their rights and threatening them to leave has been ordered to pay £8,000.

Four residents complained to Tower Hamlets council about London Corporate Apartments Ltd in late 2017 to early 2018.

The company had issued licenses to occupy, rather than assured short-hold tenancies, which meant the tenants were misled as to their rights to have their tenancy deposit protected, and their rights as to their status as tenants, and were at risk of illegal eviction.

There were also complaints that aggressive tactics were used to intimidate two of the complainants into leaving their properties.

Khaled Abed-Alrazek, director of London Corporate Apartments Ltd, pleaded guilty to two counts of misleading actions and one of aggressive commercial practice relating to his tenants from February 2017 to May 2018.

He was fined £2,000 for the company’s aggressive commercial practices and £1,800 for issuing licences rather than tenancy agreements.

He also had to pay compensation for the two deposits that weren’t returned, worth £1,255 and must pay a further £285 compensation to one victim in respect of the aggressive commercial practice, in what the Judge described as “a terrifying experience at the hands of bullies acting in [Abed’s] name”.

He was also ordered to pay a contribution of £3,000 towards prosecution costs. 

The company has since been dissolved.

A council spokesperson says: “This was a difficult case and I would like to thank the witnesses and our council teams for their hard work and persistence.

“Everyone has the right to rent a house without fear of intimidation and the correct legal rights.

“We encourage all our residents to report any dishonest landlords so we can take action.”