Renting out my house but license needed

jonggle27

Hi There,

In the past 2 weeks I have moved out of my house and moved in with my partner - I have rented out my house to friends only to find out today that I need a landlord license to rent out my house because my house is in a certain area. I am told if i rent out my house without a license I am breaking the law.

The problem I face is that I have let them move in now and they have signed an agreement, paid their deposit and their money up front.

My immediate thought is "sh*t" and to rip up the agreements and pay them back their money and let them stay in my house rent free until I get a license. I have no problem with doing this, but is there anything I need to do by law if I have people living in my house rent free?

Help!

-J

lolarentt

jonggle27 wrote: »

I have rented out my house to friends only to find out today that I need a landlord license to rent out my house because my house is in a certain area.

-J

Why on earth do you need a licence - what sort of licence and from whom? Or is it some condition in your mortgage?

clutton_2

it will be a Selective License - as per Housing Act 2004 and local authorities are using these powers to force landlords of ALL rental property in selected run-down areas to buy licenses.... it is meant to "upgrade" the area.... dont ask.....

The financial penalties for not having one are quite large - But you will need to make an application to the council and as long as you have asked for the forms they will not take action against you....

the license i had to buy for a property in manchester cost around £500 plus i had to get myself CRB (police) checked for another £50 (ish)

Manchester have now doubled the number of areas they are forcing landlords to buy licenses..... and they are already about 9 months in arrears with the paperwork.....

lolarentt

clutton wrote: »

it will be a Selective License - as per Housing Act 2004 and local authorities are using these powers to force landlords of ALL rental property in selected run-down areas to buy licenses.... it is meant to "upgrade" the area.... dont ask.....

It's no good - I'll have to ask! How is having a licence supposed to upgrade the area??

jonggle27

clutton wrote: »

it will be a Selective License - as per Housing Act 2004 and local authorities are using these powers to force landlords of ALL rental property in selected run-down areas to buy licenses.... it is meant to "upgrade" the area.... dont ask.....

The financial penalties for not having one are quite large - But you will need to make an application to the council and as long as you have asked for the forms they will not take action against you....

the license i had to buy for a property in manchester cost around £500 plus i had to get myself CRB (police) checked for another £50 (ish)

Manchester have now doubled the number of areas they are forcing landlords to buy licenses..... and they are already about 9 months in arrears with the paperwork.....

Yes, it is a selective license - and I have called them to request for the forms (before I posted this).

So do you think I should carry on renting and apply for the license in the meantime? Or shall I be cautious and reluctantly proceed with the rent-free option until I get a license?

-J

Fire_Fox

jonggle27 wrote: »

Hi There,

In the past 2 weeks I have moved out of my house and moved in with my partner - I have rented out my house to friends only to find out today that I need a landlord license to rent out my house because my house is in a certain area. I am told if i rent out my house without a license I am breaking the law.

The problem I face is that I have let them move in now and they have signed an agreement, paid their deposit and their money up front.

My immediate thought is "sh*t" and to rip up the agreements and pay them back their money and let them stay in my house rent free until I get a license. I have no problem with doing this, but is there anything I need to do by law if I have people living in my house rent free?

Help!

-J

Just because you tear up an agreement doesn't mean you weren't a landlord for the period immediately prior to that. Do you have a gas safety certificate and have you had the electrical appliances tested? Do you have landlord's insurance and consent to lease from your lender?

jonggle27

Fire_Fox wrote: »

Just because you tear up an agreement doesn't mean you weren't a landlord for the period immediately prior to that. Do you have a gas safety certificate and have you had the electrical appliances tested? Do you have landlord's insurance and consent to lease from your lender?

I own the house out right, yes I have landlords insurance in place, I have a gas ceritficate but I haven't had the electircal appliances tested.

-J

clutton_2

""It's no good - I'll have to ask! How is having a licence supposed to upgrade the area??""

the $64,000 question - how indeed... its not generally landlords who trash properties, burn cars, hang about on street corners causing mayhem, or run drug-houses ........ you tell me.........

just another blinking tax on landlords........

i can see this legislation being used for ALL rental properties within the next 10 years....


if you are going to be a landlord - then do it properly... Even if you dont take any rent - i suspect that you will still be responsible in law should anything awful happen and you will not have the proper insurance to cover yourself..

get the forms, fill them in, come back and ask us for any advice on questions you dont understand

and in the meantime join national landlords association and learn what you are doing - the hafe an excellent legal helpline which can talk you through what to do - joining fee is tax deductible...

also read the first sticky thread on here re what tenants expect - you will learn a l ot.....

it is not compulsory so have a certificate to prove that the electrics are safe, but you do have legal duties under Health and SAfety at Work Acts to ensure your tenants are in a safe environment....

how old is your electrical system ?

What have you done with their deposit ?

mqandy

clutton wrote: »

plus i had to get myself CRB (police) checked for another £50 (ish)

!!!!!!? I have only ever seen my LL once, and certainly never been in the sort of position where I would expect him to be CRB'ed.

jonggle27

clutton wrote: »

""how old is your electrical system ?

What have you done with their deposit ?

3 years old.

jonggle27

clutton wrote: »

""What have you done with their deposit ?

Banked it but able to refund it.