Landlord Licensing FAQs
General
- How will landlord licensing benefit landlords?
- Is VAT payable on the licence fee?
- Can you transfer a licence?
- What is the definition of a household?
- What sanctions can be imposed against landlords?
- What does "fit and proper person" mean?
- Are there conditions attached to the licence?
- How long does the licence last?
- When should I apply for a licence?
- Do I have to apply for a licence for each property?
- I have properties in different Local Authorities, do I have to apply to each of them?
- Can the council refuse to licence my property?
- What will happen if the council refuse to licence my property?
- Can I appeal against the decision?
Mandatory HMO Licensing
- In terms of licensing, what is a Mandatory HMO?
- What is the definition of a storey?
- Is a two storey property above business premises defined as an HMO?
- What criteria must an HMO meet for it to be licensed?
- What is meant by "reasonably suitable for occupation" for a number of people?
Selective Landlord Licensing
- What is Selective Licensing?
- Where do Salford City Council intend to introduce the scheme?
- Does the authority intend to roll out the scheme across the whole city?
How will landlord licensing benefit landlords?
Landlord licensing is intended to benefit landlords in a number of ways. As part of the licensing regime, Salford City Council will provide landlords with a range of support services and training opportunities, in order to ensure that they are able to meet the conditions of their licence, and to assist in the running of their businesses. In the longer term, licensing is intended to raise the overall management standards in the private rented sector and therefore have a positive effect on rent levels and capital values. This will encourage investment in our city and a thriving private rented market.
Is VAT payable on the licence fee?
No, VAT is not payable on the licence fee.
Licences are non transferable
What is the definition of a household?
Persons who are all members of the same family (for example, they are married or co-habiting, regardless of their sex) or one of them is the parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece of the other.
What sanctions can be imposed against landlords?
If the landlord of a property, which is liable to be licensed, and which does not have a licence or a valid temporary exemption notice, or allows an HMO to be occupied by more than the specified number of people in the licence, he commits an offence, which may be punishable by a fine of up to £20,000. If the landlord breaches the conditions of the licence, he also commits an offence and may be liable for a fine of up to £5000.
The Local Authority will be able to apply to the Residential Property Tribunal for a rent repayment order, in order to recoup any rent paid during the unlicensed period. No offence is committed if there is an outstanding application for a licence or a temporary exemption notice is in force.
What does a "fit and proper person" mean?
Salford City Council will carry out checks to make sure that the person applying for the licence is a "fit and proper person". In deciding whether someone is "fit and proper" Salford City Council must take into account, amongst other things:
- any previous convictions relating to violence, sexual offences, drugs and fraud,
- whether the proposed licence holder has broken any laws relating to housing or landlord and tenant issues,
- whether the person has been found guilty of unlawful discrimination,
- whether the person has previously managed HMO's that have broken any approved code of practice.
Salford City Council envisage that the proposed Licence Holder and/or Managing Agent will be asked to submit a Basic Disclosure (obtained from Disclosure Scotland) along with the application.
Are there conditions attached to the licence?
There will be a number of conditions attached to licences, some of which are set out in the Act and some of which will be prescribed by Salford City Council in individual cases.
Licences can be granted for up to five years. Salford City Council may grant licences for shorter periods in certain circumstances, such as if works are required to the property.
When should I apply for a licence?
Mandatory HMO Licensing came into effect from 6 April 2006.and Selective Licensing in Seedley and Langworthy on 25th May 2007. Landlords will need to request an application pack from The Landlord Licensing Team.as soon as they begin letting a property that meets the critreia for licensing
Do I have to apply for a licence for each property?
Yes. A licence will only be valid for one property. You will require a licence for each property
I have properties in different Local Authorities, do I have to apply to each of them?
Yes. Each local authority is responsible for determining and issuing a licence in their area. This allows local authorities to take their local needs and policies into account when making their decision.
Can the council refuse to licence my property?
Yes. if the property does not meet the conditions set out and/or if the licence holder/manager is not a "fit and proper person".
What will happen if the council refuse to licence my property?
If a landlord fails to bring a property up to the required standard, or fails to meet the "fit and proper person" criteria, Salford City Council can apply to issue an Interim Management Order (IMO), which if granted, allows Salford City Council to step in and manage the property.
The owner keeps their rights as an owner. This order can last up to a year until suitable permanent management arrangements can be made. If the IMO expires and there has been no improvement, the Salford City Council can apply for a Final Management Order. If granted, this s can last up to five years and can be renewed.
Can I appeal against the decision?
You may appeal if the council decides to:
- refuse a licence
- grant a licence with conditions
- revoke a licence
- vary a licence
- refuse to vary a licence
You must appeal to the Residential Property Tribunal, normally within 28 days.
In terms of licensing, what is a Mandatory HMO?
A mandatory House in Multiple Occupation has three or more storeys, five or more occupants that form two or more households.
What is the definition of a storey?
A storey is defined as any basement, attic or floor that is adapted for use as living accommodation. Mezzanine floors within buildings are included in this definition.
Is a two-storey property above business premises defined as an HMO?
Yes, where living accommodation is situated in a part of a building above or below business premises, each storey of the business premises is counted as a storey.
What criteria must an HMO meet for it to be licence
Anyone who owns or manages an HMO that must be licensed in Salford has to apply to Salford City Council for a licence. The council must grant a licence if it is satisfied that:
- the HMO is reasonably suitable for occupation by the number of people allowed under the licence,
- the proposed licence holder is a "fit and proper person",
- the proposed licence holder is the most appropriate person to hold a licence,
- the proposed manager, if there is one, is a "fit and proper person",
- the proposed management arrangements are satisfactory,
- the person involved in the management of the HMO is competent
- the financial structures for the management are suitable.
What is meant by "reasonably suitable for occupation" for a number of people?
For an HMO to be reasonably suitable for occupation for a relevant number of people, Salford City Council will be using prescribed standards set by the Government. The standards cover, amongst other things:
- number, type and quality of bathrooms, toilets, washbasins and showers
- number, type and quality of food storage, preparation and cooking facilities
- fire precautions
Salford City Council can introduce licensing to all private rented property in selected areas where there is evidence of low demand in housing and persistent anti-social behaviour. This is known as Selective Landlord Licensing.
Where do Salford City Council intend to introduce the scheme?
Salford City Council intends to introduce the scheme in a phased approach. Approval was obtained to introduce the scheme in Seedley and Langworthy in February 2007 with the scheme beginning in May 2007 and running until 25 May 2012. The next area in which the authority intend to introduce the scheme is Broughton by late 2008 followed by Kersal Charlestown in 2009.
Does the authority intend to roll out the scheme across the whole city?
Salford City Council does not intend to roll out licensing across all private rented properties in the city. The governement has indicated that selective licensing must only be used in priority areas and Salford City Council fully supports this approach.
This page was last updated on 01 August 2008
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