Commercial landlord must payback proceeds of crime

A commercial landlord has been forced to pay back £174,000 in rental income that was declared to be the proceeds of crime. The tenant was operating an unlawful shisha smoking bar and the landlord failed to take action, despite knowing an enforcement notice had been served by the local authority.

T&M Investments Limited held a 999 year lease on the property, but continued to allow the tenant to operate even though they were aware of the planning breach.

Now, T&M have been found guilty of planning-related offences at Manchester Crown Court, with a fine of £18,750 and an order to pay the City Council's costs of £5,700. Also, they must pay back £174,074 under the Proceeds of Crime Act 2002.

"The lesson for landlords is, firstly, to make sure any lease specifically prohibits planning breaches or other unlawful actions by tenants, and secondly, that there is swift action if any breach is discovered," explained Joseph Long.

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