Put spring into your tenancies, 25 steps in 25 days: STEP 4 – DO YOU NEED A LANDLORD’S LICENSE?

The three types of landlord licensing schemes fit into these categories:

1. Mandatory licensing

If you’re letting out a large HMO (house in multiple occupation) you are likely to need a licence to do so. Previously, properties over three storeys high that were occupied by five or more unrelated tenants needed a licence. But from April, the scope of mandatory licensing will be extended to cover properties with shared bathroom facilities.

These changes are subject to a six-month grace period, and you can find further details on the National Landlords Association website.

2. Additional licensing

Additional licensing schemes also apply to landlords letting out HMOs.

The 2004 Housing Act allows local authorities to apply stronger rules in their area if they believe HMOs aren’t being properly managed or that mandatory licensing doesn’t go far enough.

These licences vary in cost from area to area but you are likely to pay £500-£600.

3. Selective licensing

Selective licensing can apply to all landlords in an area.

Before awarding you with a licence, your local council will make you undergo checks to prove you are a ‘fit and proper person’, and you’ll need to agree to adhere to various regulations around property management and tenant safety.

In some areas you’ll also need to sign up to a charter.

Your council will set the cost of the licence, but you could pay around £500-£600.

Ask the local council which form of licensing applies, if you require clarification.

Properties exempt from selective landlord licensing

Some property types are exempt from selective licensing. These include:

?Properties already licensed as HMOs under the mandatory scheme

?Properties let by a local authority or social landlord

Properties subject to a management order

?Holiday lets

?Business tenancies.

HMO – related licensing breaches

Can result in fines of £5,000 to £20,000. For selective schemes your council will set its own penalties, up to a maximum of £30,000 per offence.

Source: https://www.which.co.uk/news/2018/03/buy-to-let-do-you-need-a-licence-to-be-a-landlord-in-your-area/