Croydon Landlord License - £750 for 2 months!

AdrianC

adam5609 said:

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! 

Simple choice.

Rent from July. Spend £750.
Don't rent until September. Don't spend £750.

Ball in your court. Seems to me it's simple... Is your net income from those two months still going to be positive, after the £375/mo?

But don't say "Oooh, gotta pay the mortgage" if that isn't actually an issue. We aren't stupid.

anselld

These selective licensing schemes take significant time to be approved by central government and they need to be consulted first.  If Croydon have not started that process then it is unlikely the scheme will be renewed at all in September.  They do not automatically roll over to another five year period.

Where I am they did five years and then could not demonstrate enough benefit to justify another scheme so it just stopped.

Ratkin007

From what I read, the selective licensing cheme ends 30/09/20 and they are looking to start a new scheme in 2021.   Due to Covid I guess there has been difficulties with visits being undertaken so maybe a while before your property is picked up.  be abit of a bummer if you received a CPN for failure to licence but as someone said, they make contact with you and work with you to get a licence.  

[Deleted User]

adam5609 said:

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 

A criminal offence is the best option?

anselld

brett19852010 said:

adam5609 said:

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 

A criminal offence is the best option?

It is a pragmatic view of the risk.  Fortunately the people who invent these schemes are the same ones bringing enforcement action and that takes forever and after several warnings.
It is very easy to commit a criminal offence under these licensing schemes.  It is a criminal offence by the landlord for the bins to be out on the wrong day where I am.

theartfullodger

Why are Engerlish councils so expensive? In Scotland, where I am a landlord, I pay £66/3-years/council plus £15 per property: And no charge for HMOs. 

See...

https://www.landlordregistrationscotland.gov.uk/fees-information

What is it about the english that they find it so hard to do this simply & cheaply?  Genuine question, £25 to an agreed housing charity for any genuine explanation.

Artful: Sadly born English: I'm ashamed...

[Deleted User]

theartfullodger said:

Why are Engerlish councils so expensive? In Scotland, where I am a landlord, I pay £66/3-years/council plus £15 per property: And no charge for HMOs. 

See...

https://www.landlordregistrationscotland.gov.uk/fees-information

What is it about the english that they find it so hard to do this simply & cheaply?  Genuine question, £25 to an agreed housing charity for any genuine explanation.

Artful: Sadly born English: I'm ashamed...

Some day that housing charity will be £25 richer, just not today. 

AdrianC

Hey, don't blame the whole of Ingerlan'cestershire.

This is LONDON...

theartfullodger

AdrianC said:

Hey, don't blame the whole of Ingerlan'cestershire.

This is LONDON...

I recall Croydon in the '50s.  

jumperabv3

AdrianC said:

Hey, don't blame the whole of Ingerlan'cestershire.

This is LONDON...

This is exactly why as a landlord of a property in London I decided to invest my 2nd BTL in Reading and not in London and I think many more investors will realize it sooner rather than later. (btw just heard what happened in Reading, terrible terrible, and my heart is with the families and their victims!)

Regarding my 1st property I was extremely lucky that my property from 2012 was out of the license zone, extremely lucky, because councils have just started a few years ago charging "additional tax" from landlords - having the property out of the license zone is a great benefit.

Wishing you all a good and a SAFE weekend!