Guide for Landlords

 

Guide for Landlords

We understand that successful property investment requires informed decision-making. That’s why we’ve created a dedicated investor knowledge base - your guide to property investment and guide to being a landlord. Explore expert-led videos covering key topics to help landlords invest smarter, live better, and manage their portfolios with confidence. Click to watch an introduction to our investor series.

Property Licensing: What Landlords Need to Comply

Licensing rules can be confusing. Find out why local authorities have introduced licenses and what you must do to avoid hefty fines!

Prefer to watch? Press play on the video above for a quick overview or keep reading for the complete guide.

Avoid Fines by Understanding Your Obligations

Letting without the correct license could cost you up to £30,000. With rules varying by borough, licensing has become one of the most confusing compliance areas for landlords. This guide breaks down the essentials.

Why Councils Require Licenses

Local councils introduce licensing to reduce antisocial behaviour and raise rental safety standards. Initially adopted in parts of London, licensing is now spreading across the UK.

The Three Types of Property License

  1. Mandatory License – Applies nationwide to large HMOs (5+ tenants from 2+ households).
  2. Additional License – Chosen by councils, applies to smaller HMOs (3+ tenants from 2+ households).
  3. Selective License – Applies to all rental properties in specific areas, regardless of the number of tenants.

How ‘Household’ is Defined

Licensing is based on households, not just tenant numbers:

- One person = one household

- A family = one household

- A couple and a friend = two households

- Three friends = three households

Can You Let While Waiting for a License?

Yes. As long as the application is submitted, you can let the property before it’s approved.

We’ll Help You Stay Compliant

Our lettings experts track all local licensing changes and can confirm if your property is affected. If it is, we’ll help you apply and stay fully compliant quickly and correctly.

Speak to our lettings specialists today and start investing smarter, to live better.

Property Licensing for Landlords FAQs

In some areas, it's a legal requirement for landlords to hold a license to let certain types of properties.
Mandatory (large HMOs), Additional (small HMOs in specific areas), and Selective (all properties in designated zones).
No. Licensing depends on the property type and local council rules. Speak to us to check if your property is affected.
A household can be a single tenant, a family, or a couple. Multiple unrelated tenants = multiple households.
Yes, as long as your application is submitted. You don't need to wait for approval before tenants move in.
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Guide to letting your property

Selecting the right agent for you should not be a difficult decision. Although you may find agents ability to deliver expert support, long-term, can vary. As a Landlord, you need to trust the agent to guide you through every step of the lettings process and manage your property once a tenant moves in. This is particularly important given the amount of new government legislation frequently introduced. Many carry hefty fines for non-compliance. The wrong choice can be costly, so please consider an agency's reputation carefully.

Over-valuing and setting an unrealistic rental price will cost you money. Rental prices can change almost weekly. So your chosen agent must demonstrate their knowledge regarding comparable properties competing for the tenant demand in the local area at the time of placing your property on the market. An agent with a high turnover of rental properties will show you recently let properties and the rent agreed. This will ensure a successful let within your specified timeframe and avoid an empty property.

With so many properties on the market, differentiating yourself from the competition is vital. Fantastic photos – perhaps utilising wide-angle and enhanced images – will help your property stand out on Rightmove & Zoopla. To maximise the interest, avoid agents that solely rely on the internet for tenant enquiries. Instead, choose an agent that combines excellent marketing with a proactive lettings team, who will utilise their rich database of tenants to maximise the interest in your property.

When it comes to advertising online, there are good, bad & ugly techniques like any marketing channel. Agents with an in-depth understanding of tenant behaviour whilst on property websites are at a distinct advantage. A strategic plan is strongly advised, instead of posting the advert and sitting back & waiting. Tie this with creating urgency before and on the viewings will give you the best chance of success.

Continual communication from the outset is key. Knowing how much activity your property has gained allows you to make informed decisions. It can be the difference between a let or a void period. Choose an agent committed to providing regular updates about the level of interest and feedback from prospective tenants.

It is your property; it is, therefore, your choice who lives there. Sometimes this may not be the person offering the highest rent. An open discussion with your agent about your preferences allows you to stay in control.

There are over 100 pieces of legislation that must be adhered to before a move-in takes place. Many of these carry hefty fines for non-compliance. Ensuring your agent informs you or actions them on your behalf means you will be protected before, during and after the tenancy.

Once let, and under property management's watchful eye, the information they provide from regular inspections is essential to the tenancy term's smooth running. These will help ensure your property is being cared for in the way you would wish. It also allows you to address any maintenance issues quickly and effectively to uphold the property's condition. Access to an online landlord portal will provide 24/7 visibility.

It is vital to ensure you retain all records, documents and statements relating to the tenancy. This not only protects you and your property against any damage once returned post-tenancy but helps with any personal tax obligations. These are now securely stored in an agent's online portal for easy access.

We genuinely care for customers, whether you are a current customer or thinking about using our services. Advice is always available from our Lettings Specialists. If there is anything you wish to discuss, please feel free to contact us. We can also help landlords looking to expand their portfolio, considering equity release or reducing your monthly outgoings, perhaps via a re-mortgage. Buy-to-let experts and Financial Advisers are available throughout the Robinson Jackson Group.

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