Property Licensing
‘A’ Day is nearly here. ’A’ day is 6th April and sees some significant changes to lettings legislation.
Q- So how does it affect landlords?
A- 6th April sees the introduction of a mandatory licensing scheme for most HMO’s, and includes houses let to students. Q- What is an HMO?
A- House in Multiple Occupation
Q- Why are the changes being introduced?
A - It was a stated intent of the Housing Act 2004 to try and improve the standards of property in the private rented sector
Q- So which properties does this apply to?
A- In essence, properties that are 3 or more storeys, and have 5 or more people with 3 or more being unrelated. In this context the term storey includes commercial premises on the ground floor and a mezzanine floor, but not the basement.
Q- If I own a property that may fall within the above definition, what should I do?
A- Look at the council’s website www.sheffield.gov.uk/hmo and see if there is any guidance on there that can help you make the decision or the ODPM website www.propertylicence.gov.uk . There are question and answer pages at both websites. If you cannot work it out from these sources please contact the Council and ask if you need a licence by email to hmo@sheffield.gov.uk . If you need a licence and don't have one, you could be liable to a fine of up to £20,000 once the enforcement regime goes live in July and you could also have problems collecting rent .
Q- How much will a license cost?
A -This is clearly defined on the website and full details can only be verified after the Council cabinet meeting on 12 April. However current prices range from £500 to £920.
Q- What do I need to do to make sure that I can licence my properties
A- Notify the council at the above email address of any houses that you have that are occupied by 5 persons and have three storeys together with your name and address and that of any agent. The Council then will send you the relevant documentation.
For more information, on the above or on any other lettings, property management or buy to let investment, please contact Rick Flay LLB Hons, Belvoir, the lettings specialist on 08452 60 40 90, or email sheffield@belvoirlettings.com
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