Introduced on 1 October 2018, a landlord licence must be obtained from the council if you are renting out a large house of multiple occupation (HMO) with the following criteria:
- It is rented to five or more people who form one household
- Some or all tenants share toilet, bathroom or kitchen facilities
- At least one tenant pays rent
This may include bedsits, house shares, student accommodation or a Bed and Breakfast which is used not just for holidaying.
Should you be granted a licence, it will come with conditions attached to ensure that the standards in your building continue to be maintained.
The mandatory conditions are:
- Proper fire safety measures in place, including working smoke alarms
- A valid gas certificate provided annually
- Electrics checked every 5 years
- The property is not overcrowded
- There are sufficient cooking and bathroom facilities
- Communal areas and shared facilities are clean and in good repair
Additionally, each council can have further conditions which could include:
- Restrictions or prohibitions on use of parts of the HMO by occupants
- A requirement that the condition of the property, its contents, such as furniture, and all facilities and amenities are in good working order
- A requirement for specific works or repairs to be carried out within a particular timeframe
- A requirement that the responsible person attends an approved training course
Of course, there is a fee attached to the application. This can vary depending on the council, but starts at around £525 for a 5-6 bed space, and needs to be renewed every 5 years. Councils do have the right to shorten this period.
Councils can charge up to £30,000 for each committed offence, so it's a good idea to make sure that everything is in order.
Being relatively new, it will be interesting to see whether some kind of licencing scheme will be pushed out to all landlords in the near future - and indeed, some councils already do. It seems like a fairly easy way for them to increase their income – so watch this space.
Any questions about the above, then by all means please get in touch.