Rent Smart Wales private landlord licensing scheme initiated

Rent Smart Wales has been launched as the government’s solution to maintain control over the private rental sector. Cardiff Council was named as the licensing authority by the Welsh Ministers.

What is Rent Smart Wales?

This new Private Rental Sector (PRS) scheme is a different approach to licensure. It is purposefully designed to be easier on everyone except for rogue agents.

This initiative is intended to make it easier for private landlords to comply with licensing and registration requirements. Since the scheme covers the person instead of the property, a single license may be granted to a landlord who administers multiple properties throughout the country. This will reduce the regulatory burden that property managers and owners previously had to navigate as a part of doing business.

A training course is required for all who let properties through the private sector. This ensures that no one accidentally allows for unsafe or unsanitary situations to exist.

The previous voluntary rules are replaced by a mandatory system of compliance. A property owner may opt out as long as their agent is licensed. Self-managing owners must comply.

When was Rent Smart Wales added?

The PRS scheme was instituted in 2015, though it was authorised by the Housing (Wales) Act 2014. A voluntary compliance period of one year was allowed to provide for additional time so that affected parties could meet the requirements.

Mandatory registration was set to begin in autumn 2016. The extra time was added in part due to the training component that educates on rights and responsibilities. It includes extra education on the procedures that both parties to a letting agreement must follow to address grievances.

How does it work?

A paper application (£80.50) costs more than twice the online version (£33.50), making the electronic option the better choice. This is simply for the registration requirement.

The actual license carries an additional fee. Again, filing online (£144.00) is substantially cheaper than completing the paper documentation (£186.00). Agents must pay the highest amount (£3,728.00, or £4,368.00 for paper) since they may potentially represent so many individual homes.

Approval is granted if the applicant is ‘fit and proper’ and remains in effect for 5 years. Revocations generally occur when a violation of the Code of Practice has been proven.

Generally anyone who is reasonably connected to the management or operations of private rental homes must apply. This frequently includes those on permanent payroll. This does not include contractors who provide incidental services to properties, such as plumbers or electricians.

Tenants are the ultimate victor, since they benefit from increased compliance with the Code of Practice. Their rights are honoured in situations where a grievance may exist. While challenges still exist, local councils are better able to monitor activities in the private rental sector. A Tenant Guide is available through your local Citizens Advice office.

Training

Training has been in place many years, with over 5,000 voluntary trainees already having benefited prior to the Act. This requirement is now mandatory to all parties who apply.

Courses are offered at many local councils. An online course is offered in situations where attendance in person is difficult or if the individual is currently living outside of Wales.

Contact

Enquiries may be directed to Rent Smart Wales at 03000 133344. Details on courses and other frequently asked questions are available at the government’s website.