New regulations were introduced recently into Wales regarding the management of rental property. Since 23rd November 2015, all landlords with property in Wales became subject to legal requirement to register under the scheme that is informally known as “Rent Smart Wales” and is part of the Housing (Wales) Act 2014.
All landlords have 12 months from the date of commencement to register as a landlord. Additionally, some individuals will also need to apply for a license.
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What is Rent Smart?
If you own a property in which you do not live but rent it out to somebody who lives there as the occupant (either as a sole occupant or as a family) then you are legally a landlord. This means you have to register for the scheme through the Rent Smart website. All landlords who own property in Wales that are leased on an assured, assured shorthold or regulated tenancy, a property in which they do not live must register for the scheme, regardless of how the property is managed.
If you are a single landlord owner, co-own a property with others as a group, or as a company or a trust, you will need to register but you will not need to register all owners. One person may do it on behalf of everyone and the cost to do so is the same (presently £33.50). Each registration lasts five years, at the end of which you must re-register and pay the fee once more. During the process, you will be asked to provide details about you and your property. Should any of the details change, you will need to keep the records updated.
Additionally, there is a charge (presently £144) to apply for a landlord license. As we will see below, whether you need to apply for a license all depends on how the property is managed (marketed, viewings, maintenance etc.)
Self-Managing Vs Agency
As well as registering as a landlord in Wales, there are extra requirements depending on how the property is managed. If you self-manage, then you will also need to obtain a license under the new scheme. This is not required if you use an agent to manage your property or properties but you are advised to ensure that you check whether your agency has registered yet or when they intend to do so. It is good practice for agencies to do this early to ensure compliance.
Though you are not legally responsible for the actions of your agency, it may be a good idea to ensure that your present agent or prospective new agent has licensed. Rent Smart Wales says that many agencies have already registered to ensure compliance with the law.
Rent Smart has a full list of FAQs here.