A lot of landlords don’t even realise they need licenses, but if you don’t comply with the rules of the council where you own your property there could be serious consequences.
For non-compliance you could be handed fines worth thousands of pounds, your tenants can apply to the council for a rent repayment order from the courts and it can even be treated as a criminal offence.
But fear not, we’re here to guide you through what licenses you might need as a landlord and how you go about applying for them.
What are the different licenses that London landlords might need?
Councils across London are beginning to introduce article 4 directives that apply to all landlords, no matter how big your property is.
These already apply in Newham and Tower Hamlets councils and the license you need in this case is called a ‘selective license’ and in these councils all landlords must have this license.
To apply, you need to go on the council website, fill in the required details and pay a registration fee and only then are you considered compliant.
For landlords who own a property that is occupied by five or more unrelated tenants, you need to apply for an ‘HMO license’ (House of Multiple Occupation).
Some councils require an ‘additional license’, extending the HMO license requirements for any property that has three or more unrelated tenants.
For this license, you apply through the same channels as the other licenses on the council website and you have to provide information like mortgage details, room sizes, whether there are smoke alarms, whether there are heat detectors etc.
The complications arise when you realise that not only do all the councils in London require different licenses, but they also all have different specifications for compliance within those licenses.
For example, in Wandsworth council, HMO licenses are required for properties with five or more unrelated tenants and the minimum bedroom size is 6.5 square metres.
Whereas, right next door in Lambeth council, they require an HMO license for properties with three or more unrelated tenants and the minimum bedroom size requirement is 7 square metres and then both councils also have different requirements when it comes to the size of living spaces.
What does this mean for me as a landlord?
If you’re a landlord with Rocket, then you don’t have to worry about any of this, as we have had to deal with these regulations in councils all across London on countless occasions and so we understand the rules thoroughly.
Even better than that we have tools in place to let our landlords know what licenses they require and we’ll apply for the licenses on your behalf, which you won’t find many other agents doing.
We do charge a fee of £240 incl VAT to apply for licenses, but because we are regulated by Safeagent, we frequently get a discount on the license registration fee in excess of £200, so the amount you actually end up having to pay us is minimal.
We’ll also keep on top of any alterations in regulations from the various councils so that even if you don’t need a license right now, we’ll let you know if that changes and sort it all out for you.
If you’re not a landlord with Rocket, we would either advise making sure you find out what licenses you might need, or switch over to us where we keep your property investments profitable and compliant, while you enjoy peace of mind.
To discuss landlord licenses in your London area, click here to schedule a meeting with our founder, Ben Temple.
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