UK Landlord Forum / Life

Appreciate any thoughts on this...its a little specific of a situation so I can provide more details if helpful

The area in which I have houses that I am renting is about to become designated as a Selective Licencing Scheme zone.
And so the question of paying for licences has arisen.
At the moment I rent a handful of properties to an agent on a "guaranteed rent basis".

They have a very poorly written "AST" which quite frankly am not sure is worth  the paper it's written on but our family has decades of experience using this firm and they are ok even though they are not the best administratively.

The agreements are for two years, they pay rent whether they sublet to a tenant or not.
The question I have is who should pay for the Selective Landlord Licence?

Technically I am renting to the company, so my "tenant" is the agent company
They are the ones with the actual  "tenant" residing in the property ...

I know under the scheme an agent can apply on behalf of the landlord but then the agent keeps the licence even if I decide not to use them so that would be another £700 written off to apply for another licence so there is an inherent benefit of keeping the licence.
Should I pay this myself as the licence is valid for 5 years and there is a remote chance I don't renew with the agent...

The agent (obviously) has asked all the landlords to get their own licence.
Was just wondering as my agreement to them isn't covered by the Landlord and Tenant Act (as I rent or a company not an individual) and the selective licence scheme is implemented under that act...

I guess legally I could argue they need to get one and I do not?
but then the agent might not offer the guaranteed rent scheme to me anymore.....?

Any thoughts? Any chance anyone else has similar situation?
Many thanks in advance.

Quote from: theangrylandlord on September 24, 2015, 02:07:11 AMThe area in which I have houses that I am renting is about to become designated as a Selective Licencing Scheme zone.

Quote from: theangrylandlord on September 24, 2015, 02:07:11 AMAny thoughts? Any chance anyone else has similar situation?

My thoughts... sell up these properties right now and start somewhere else where there is no selective licensing.

As for who pays - the Landlord, I'm sure... but are you going to be able to raise the rent to offset these costs is the question I have. If not, ouch!

Thanks Hippo.
Figured that would be the case, was hopeful of a different response but didn't expect it.

Bloody ouch is correct.  We regularly raise the rent but that won't be immediate and that raise would have happened without the licence fee so the cost will have to be shared between me and George Osbourne.

Unfortunately I thought I was ahead of the game when I bought properties in the area that I lived so I could maintain them all, but the downside of that is......you guessed it ...they are mostly in the same council zone ....arsicles.

To be honest though it won't be long before all councils will get into the act and I can't keep selling properties to avoid the money grabbing b@5t@rd5..

Thanks for the post anyway.

Quote from: theangrylandlord on September 25, 2015, 10:29:04 AMTo be honest though it won't be long before all councils will get into the act and I can't keep selling properties to avoid the money grabbing b@5t@rd5..

I hope this is not the case... if it is, then I will reconsider my overall position.