Still confusion over licensing – Rent Smart Wales
We are shocked to find there is still a great deal of Rent Smart Wales confusion over registering and licensing. We hope that this will clarify one of the major questions we are often asked on licensing.
As you know, anyone who is renting a property in Wales now needs to register as a landlord as part of the Rent Smart Wales scheme. This includes those landlords which are often described as accidental, as they let a property out of necessity rather than a desire to create a business.
We meet many landlords who feel they don’t need to register as they are letting to a friend or only have one property, but regardless of the title you give yourself, in the eyes of Rent Smart Wales you are a landlord and therefore you must register as soon as possible.
Should you be licensed?
Here is where the biggest confusion lies. Once you have registered you have two options:
- Manage the property yourself
- Hand over the management of your property to a letting agent.
Should you decide to manage the property yourself then you need to be licensed, this requires you to undertake training and pass a test to prove that you understand all the legislation and regulations involved with letting a property. Again it doesn’t matter the size of your portfolio, you may only have one property to let, regardless, should you wish to remain managing the property yourself you need to have a license.
No license required
Many landlords don’t want to manage the letting of the property themselves and as such hand this responsibility over to a letting agent. This letting agency must be licensed if they are to manage the property on your behalf.
We are finding many landlords are handing over their properties to a letting agent as they do not wish to undertake the licensing training and subsequent test. We can understand how this can be daunting, as we work in the ever-changing lettings market on a daily basis and are constantly having to keep abreast of changes and how they impact on the properties we manage.
If you are still confused on how Rent Smart Wales affects you as a landlord, come and chat to your local branch of Bidmead Cook.