A rogue landlord who illegally rented out accommodation to St Andrews University students has racked up £3 million of debts, a court heard.
In one of the first convictions of its kind in Scotland, Daniel Eaton admitted a total of 10 charges, including breaches of the Anti-Social Behaviour Act and contravention of HMO (Homes in Multiple Occupation) laws.
Cupar Sheriff Court heard how the 36-year-old’s business affairs “shambolically” spiralled out of control as he attempted to juggle a large portfolio of properties.
Eaton, of Learmonth Place in St Andrews, let a number of properties in various locations including Sandyhill Road, Largo Road and Lamond Drive without securing the correct documentation.
His finances began to unravel as the parents of students housed within the properties realised the illegality of the situation and withheld rent payments.
All the offences date back to the start of the academic year, in September 2010.
After studying financial documentation presented to the court, Sheriff Charles Macnair noted that Eaton has debts of some £3 million and assets of just £2 million.
In response to the judge’s observation, solicitor Douglas Williams acknowledged his client was guilty of maladministration on a huge scale.
Eaton has now placed properties on the market in a desperate attempt to claw back some money, but the situation remains “extremely grave.”
“He has no ready cash available,” Mr Williams said. “At the current juncture there are offers on two of his houses, with prospective entry dates in June or July.’No troubles to seek'”It is fair to say that Mr Eaton does not have his troubles to seek but he does not shirk his responsibilities in relation to these matters.
“He knows why the legislation is in place and he cannot deny he has been wilful in as much as…he did not secure the appropriate licences.”
Eaton was described in court as a trained architect and a “skilled tradesman.” However, his attempts at property management were anything but professional.
“Students began to withhold rent until matters were organised and things have unravelled as a result,” Mr Williams said. “The whole thing has been shambolic, to say the least.
“All the regulations are in place to protect tenants and to ensure their safety,” the defence agent continued.
“One can at least say that the position here is that there were no incidents that led to tenants being endangered.”
Mr Williams said Eaton now thoroughly regretted his foray into the world of property management.
“This was an ambitious project that looked like it would stack up…but it has unravelled horribly,” he said.
Mr Williams added it was hard to know what an appropriate sentence may be due to the highly unusual nature of the case. “I could find absolutely no precedents,” he said.
Sheriff Macnair fined Eaton £5900, but said it would have been far higher but for the accused’s “extremely precarious” financial situation.
“Multiple occupation laws were brought in to make sure that a tenant has a safe property to live in,” he said.
“You would appear to be insolvent but that does not mean I should not impose fines of an appropriate amount. These fines must take priority over other debts.”