Important Legislation

Rent Smart Wales - A new Law for landlords & agents

Registration & Licencing From 23rd November 2016

Rent Smart Wales aims to raise standards in the private rented sector in Wales with the introduction of a new  law requiring the registration and licensing of landlords and agents.

It is intended that the legislation will result in:

• improved standards of letting and management practice in the private rented sector
• more information on landlords available for tenant verification and for local authorities to assist with strategic intervention and dissemination of information
• raised awareness by landlords and agents of their respective rights and responsibilities
• in turn, raised awareness by tenants of their respective rights and responsibilities.

From autumn 2015, landlords and agents must become registered and licensed via Rent Smart Wales. This will mean that:

• all private landlords who have a rental property in Wales must register themselves and the addresses of their rental properties in Wales
• landlords who undertake defined letting or property management activities at a rental property in Wales must apply for a licence. If a landlord instructs an agent to do such work on their behalf, it is that agent who must become licensed
• in order to get a licence a person must be adequately trained, and also declare themselves ‘fit and proper’
• licensing training will be offered through Rent Smart Wales or people can choose to attend Rent Smart Wales approved training courses delivered by other bodies.

Powers will be given to the licensing authority from autumn 2015 to administer the new legal system and register landlords and grant licences. After the initial year of operation, in autumn 2016, the range of enforcement powers in the Housing (Wales) Act 2014 (such as fixed penalty notices and prosecutions) will be introduced and landlords and agents found to be ignoring their new obligations will have action taken against them by local authorities and the licensing authority. This will give people a year to comply without fear of legal action.

The new legislation and Rent Smart Wales will replace the existing voluntary Landlord Accreditation Wales  scheme, which has been operated by Cardiff Council on behalf of all local authorities in Wales. If you are a landlord or agent who is interested in completing training at this point, you can still visit their scheme and attend training that will be recognised under the new licensing system until autumn 2015.

At YOUR AGENT we will help all our landlord clients meet their legal obligations with a minimum of fuss. Under our full management contracts we will under take the required training and licencing on your behalf.

OUR SERVICES

TENANT INTRODUCTION:

We find a tenant, carry out credit search and identification checks, take employment and previous landlord references, prepare the tenancy agreement, arrange the check in of the tenant. After that the rental is paid directly to the Landlord and all management is carried out by the Landlord The letting fee is payable once the tenant has been installed. 

RENT COLLECTION:

We find a tenant, carry out credit search and identification checks, take employment and previous landlord references, prepare the tenancy agreement, arrange the check in of the tenant and advise the gas, electricity & water companies & local council of change of occupier. The Agent collects the rental and pays this over to the Landlord each month less their fees. The Landlord carries out all management.

FULL MANAGEMENT:

We will ensure your legal obligations are met under the Rent Smart Wales Legislation. We find a tenant, carry out credit search and identification checks, take employment and previous landlord references, prepare the tenancy agreement, arrange the check in of the tenant and advise the gas, electricity & water companies & local council of change of occupier. They collect the rental and pay this over to the Landlord each month less their fees & manage the property. This involves dealing with enquiries from the tenant, arranging routine maintenance e.g. washing machine repairs, plumbing repairs etc and visiting the property approximately three times a year for a property inspection. If major works are requested by the Landlord, e.g. decoration, new carpets, insurance claim work etc, they would usually make an additional charge.

DEPOSITS

N.B. From April 2007 under the 2004 Housing Act Landlords are no longer be able to hold deposits with AST tenancies unless they have them registered with a specific scheme .

All our deposits are lodged with the Deposit Protection Scheme.

CLIENT MONEY PROTECTION:

We have full client money protection insurance through Client Money Protect.

Rent Smart Wales Licenced Agent     

LANDLORD SCALE OF FEES

- Full Management Service: Initial Set-Up fee of £250.00 per Property or 50% of the first month’s rent whichever is the greater, then 12% of the Gross rent as commission for the duration of the agreement.

- Let Only Service: A one-off fee of 75% first month’s rent or £350 whichever is the greater.

Additional Fees

• Early termination by the landlord – a minimum fee of £250 or 75% of management fees until expiration of the tenancy whichever is the greater, will occur.

• Tenancy Agreement Renewal – a fee of £80 will be charged if the landlord requests a new 6 month contract rather than a rolling periodic tenancy after the first 6 months.

• Re-letting fees – a fee equal to the initial set up fee will occur with a change of tenant

• If the landlord agrees a sale to a tenant that we have introduced we shall receive a commission of 1% of the sale price.

• All Fees are subject to VAT if applicable.

• During April of each year, if we are instructed to carry out an audit on the property by HMRC, there is a one-off charge of £50 per year per property to cover the costs of this. This will be deducted from April/May rental payment and will show on your relevant statement

Contact us to arrange a free market appraisal