If you rent multiple rooms to 5 or more people, forming two or more households, then you need a license and the deadline to apply is 1st October 2018.
Up and until now, landlords only required a license if you had five or more people AND over 3 or more floors. The new changes have taken the ‘AND’ out and you now require a license whether they are on one floor or more.
Bournemouth and Poole council are charging £635 for a new license for up to 10 units(rooms) and an additional charge of £35 to conduct a ‘Fit and Proper Person check’. The license will last for 5 years. The ‘Fit and Proper person check’ will include checking for the following.
- 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 HMOs that have broken any approved code of practice.
A fine of up to £20,000 may be imposed. In addition, breaking any of the licence conditions can result in fines of up to £5,000.
The licence will also include the following conditions
- A valid gas safety certificate
- A valid electrical safety certificate (5 year NICEIC certificate)
- Proof that all smoke alarms and fire detection systems are correctly positioned, installed and regularly maintained
- Each occupier must have a written statement of terms on which they occupy the property, for example a tenancy agreement.
Room sizes are also changing. For one person the room must be a minimum of 6.51 square meters and for two people the room must be a minimum of 10.22 square meters. Those found renting out rooms smaller than these sizes will attract civil penalties of up to £30,000 by local authorities.
It is becoming increasingly difficult for landlords to self-manage property portfolios, with over 150 new legislations in just the last 3 years.
Please be safe, be compliant and sleep at night.
At Move On Sales and Lettings, we believe ‘experience, expertise and knowledge really makes a difference’.
If you would like a friendly, no obligation chat regarding buying, selling, renting or investing in property, then please Email firstname.lastname@example.org or telephone 01202 711169.