Over recent years, there has been a notable increase in the number of local councils in England and Wales implementing landlord licensing schemes. While these schemes aim to tackle unscrupulous landlords, it is essential to recognize that most landlords already comply with the existing laws governing tenants and rental properties.
Selective Licensing and Its Origins
Selective licensing initially applied only to Houses in Multiple Occupation (HMOs). However, local authorities have expanded the requirements, now demanding landlords to obtain licenses for every property they rent out. The Housing Act of 2004, enforced in April 2006, granted local housing authorities the power to establish selective licensing schemes to regulate the private rented sector.
Responsibility and Consequences
It becomes the landlord’s responsibility to determine if licensing is necessary for their property and to understand the criteria for obtaining one. Meeting the standards set out in the licensing scheme and adhering to them throughout the license term is vital. Failure to do so may lead to severe penalties, with fines of up to £5,000 per offense.
Costs of Licensing
Licenses typically last for five years, and the expenses associated with obtaining one vary from one borough to another. The fees can range from £200 (e.g., Liverpool) to as high as £1,000 (e.g., Bristol) across England. London boroughs like Brent charge £340 per property, while Croydon’s rates can go as high as £750. Most other boroughs charge around £500 per license, excluding compliance costs.
Alternatives to Save Money
Investing in properties within London boroughs that have opted out of selective and additional licensing schemes can help landlords save money. Additionally, some local housing authorities may offer discounts to landlords with multiple properties in their area. It’s important to seek advice on strategic property investments in London to avoid unnecessary charges.
Potential for Lower Costs
Landlords have contested the high costs of some licensing schemes through legal challenges. As a result, local authorities can only charge fees to cover administrative expenses, not to make a profit. This may lead to the reduction of licensing costs in the future.
Inspections and Compliance
Regular inspections are critical for identifying rogue landlords but can be time-consuming for compliant ones. Landlords can benefit from working with experienced agents like Extra Rent, who can handle routine inspections on their behalf.
Dealing with Compliance
Each local housing authority has its own set of rules for licensing, and ensuring compliance can be complex and time-consuming. Extra Rent
simplifies the process by overseeing health and safety inspections and securing the necessary certifications for landlords. They handle all the paperwork, submissions, and tracking, minimizing the risk of rejection or revocation of the license.
Time Management and Peace of Mind
Navigating licensing requirements can be a hassle for landlords, taking time away from more important tasks. Extra Rent goal is to eliminate the burden of landlord licensing, allowing landlords to focus on their deals and personal lives instead of filling out council forms. With Extra Rent, landlords can rest assured that their licensing matters are handled professionally and efficiently.