Thursday 19 November 2015

Legislation Update: Rent Smart Wales launches 23rd November

About Rent Smart Wales

Rent Smart Wales, the brand name for the new registration and licensing requirements under Part 1 of the Housing (Wales) Act 2014 will be launched on 23 November 2015. 
 
Landlords who need to register, and landlords and agents who need to become licensed, will be able to register and apply for a licence from this date. They will have 12 months from 23 November 2015 in which to comply with the new legislation.  During this first year there will be a focus on raising awareness of the new requirements and encouraging compliance. 


Registration

It resembles a policy introduced by the Scottish Government a decade ago. The Welsh Government believes that registration will help to improve standards in the private rented sector by being better able to target criminal landlords. 

What this means for Landlords?

This applies to every landlord who rents properties located in Wales, without exception.  It doesn’t matter whether the landlord lives in Wales or not.  It also applies to landlords who rent properties that are managed by an agent.

For the first time Landlords will have to register thier details with a central ‘Licensing Authority’ and details of all thier rented properties in Wales.

If Landlords don’t comply they will be unable to legally rent thier property and could face a number of penalties including unlimited fines and rent stopping orders.

What do I have to do?

The preferred process for registering will be via a new online portal, although written registrations will also be possible.

Landlords will have to register prescribed personal details, including full name, date of birth, previous names and details of any agent who manages thier property. 

They will also have to register details for each of thier properties.  The cost is TBA, but may be approximately £50 for personal registration and £10 for each property.

Licensing

The Welsh Government believes that national licensing will help to improve standards in the private rented sector by compelling managing landlords and agents to follow a set of conditions and undertake approved training. 

What this means for Landlords?

This applies to every letting and managing agent, and landlord who manages or undertakes maintenance on their property(ies) located in Wales.  It doesn’t matter whether the landlord lives or the agent’s main office/ branch is in Wales or not.

For the first time agents or landlords who manage their properties will have to have a licence.  Landlord who don’t wish to become licensed, or are unsuccessful in obtaining a licence, must then instruct an agent to manage the property on thier  behalf.  Agents that don’t obtain a licence will be unable to trade.  Landlords could face a number of penalties including unlimited fines and rent stopping orders.

What do Landlords have to do?

It has been confirmed that the process for applying for a licence will include personal or business details, including full personal/company name, date of birth, contact details, previous convictions and details of ‘connected persons’ (for agents potentially every member of staff).  Licensees must be: a ‘fit and proper person’, complete a training course, follow a set of TBA conditions and code of practice.  

Landlords and Agents will also have to meet some of this criteria before applying for a licence.  The cost of obtaining a licence is TBA and will be in addition to separate fees for training.  For managing landlords, this will be in addition to registration fees.

Please do not confuse this with Mandatory HMO, Additional HMO or Selective licence.  If landlords require one of these types of licence they shall also require this new national licence as well. 

Your Agent Comment

There will be no need for any of our Landlord clients to undergo the licencing, training or accreditation process. YOUR AGENT will be licenced on your behalf. We will also guide you through the registration processs and ensure you fully comply with the new legislation.

If you are a landlord who does not want to go through this onerous process then why not let YOUR AGENT be your agent? And let us take the hassle out of managing your property.


Where can I find out more?

https://www.rentsmart.gov.wales/en/