Croydon Landlord License - £750 for 2 months!

adam5609

silvercar said:

adam5609 said:

silvercar said:

What happens if you don’t have a licence for the first two months?

Up to 30k fine if caught 

Hmm!
From their FAQ:
How will you tackle the landlords who haven’t signed up to the scheme? We will contact unlicensed landlords with information about the scheme and how to apply. If the landlord does not respond we will send a reminder, but if there is still no response we will look to prosecute them for failing to apply for a licence. 

By the time they have contacted you and given you time to apply and then sent a reminder and then waited to see if "there is still no response", you would be within the application time for the new 5 year period.

Thanks for this. Looking the best option 

Jumblebumble

adam5609 said:

adam5609 said:

I'm looking to rent my house out and have discovered that Croydon council requires me to have a landlord licence. I believe the money raised goes toward helping the council ensure tennants receive a certain quality of property from their landlord which I think is great. The licence is £750 for five years which seems fairly reasonable. However, the website says that the will not pro rata and licence covers fixed dates - October 2015 to September 2020. Therefore  it looks as though I'm going to have to pay £750 for renting my house of for two months and then another £750 in September for the next five years. I can't believe they won't take the fact there is such little time remaining of this periods license into account and simply pro rata it! I've no idea whether this is legal or not - does anyone on here know or do they have any experience of the Croydon licence? As far as I know it's the only council that makes landlords pay the fee. Thanks all.

Thanks for this. Looking the best option

I could not possibly advise you that if you do hear from the council to stall things  by doing such things as saying you have messed up the forms and so could they send you another set etc

Crashy_Time

How big a temptation now for government/councils to raise the price of these permits, surely some votes and certainly tax revenue in that move?

ThePants999

AdrianC said:

If £750 set against two months rental income is a showstopper for the viability of your business, DON'T START THE BUSINESS.

You need to have sufficient cash reserves to weather voids, maintenance, repairs, bad debts, legal costs... If £375/mo for two months is the difference between this being a viable business and you falling into debt, SELL THE PROPERTY.

The OP didn't say that they couldn't afford the £750. The OP simply said that £750 for two months, when it's intended to be £750 for five years, is ludicrous. And they're entirely correct. This is a piece of stupidity from the council.

AdrianC

ThePants999 said:

AdrianC said:

If £750 set against two months rental income is a showstopper for the viability of your business, DON'T START THE BUSINESS.

You need to have sufficient cash reserves to weather voids, maintenance, repairs, bad debts, legal costs... If £375/mo for two months is the difference between this being a viable business and you falling into debt, SELL THE PROPERTY.

The OP didn't say that they couldn't afford the £750. The OP simply said that £750 for two months, when it's intended to be £750 for five years, is ludicrous. And they're entirely correct. This is a piece of stupidity from the council.

And, when it was suggested they simply wait two months before letting, the OP said they couldn't afford to, because they couldn't pay the mortgage without rental income...

adam5609 said:

Slithery said:

Don't let the property until after September?

I need to pay the mortgage

ThePants999

"I need to pay the mortgage" isn't the same as "I'll go bankrupt if I don't get two months of rental income". And assuming the rent is more than £375/month, then the OP's entirely correct that not letting the property until September in order to dodge the £750 payment is a poor choice given the mortgage payments aren't going away.

DoaM

One might suggest that a slush fund of 1 year's rental income should be in place before starting such a business. If the rental income is needed to cover the mortgage payments, and the additional £750 is a show-stopper (or causes significant inconvenience) then it suggests that the OP's financial basis is not sufficient to start such a business.

ThePants999

£750 will ALWAYS be a "significant inconvenience" when it's going on bureaucracy.

DoaM

How is that relevant to a business being fundamentally viable?

adam5609

AdrianC said:

ThePants999 said:

AdrianC said:

If £750 set against two months rental income is a showstopper for the viability of your business, DON'T START THE BUSINESS.

You need to have sufficient cash reserves to weather voids, maintenance, repairs, bad debts, legal costs... If £375/mo for two months is the difference between this being a viable business and you falling into debt, SELL THE PROPERTY.

The OP didn't say that they couldn't afford the £750. The OP simply said that £750 for two months, when it's intended to be £750 for five years, is ludicrous. And they're entirely correct. This is a piece of stupidity from the council.

And, when it was suggested they simply wait two months before letting, the OP said they couldn't afford to, because they couldn't pay the mortgage without rental income...

adam5609 said:

Slithery said:

Don't let the property until after September?

I need to pay the mortgage

ThePants999 said:

"I need to pay the mortgage" isn't the same as "I'll go bankrupt if I don't get two months of rental income". And assuming the rent is more than £375/month, then the OP's entirely correct that not letting the property until September in order to dodge the £750 payment is a poor choice given the mortgage payments aren't going away.

ThePants999 you are spot on. No financial hardship over here, I just don't want to pay the charge!