Rent Smart Wales: Licensing Conditions

Introduction

Different conditions will apply to those licensed before 1 July 2020 and you can find that information further down the page. You will need to ensure that you comply with the licence conditions your licence was issued with. All licence conditions can be subject to change at any time and bespoke licence conditions are often added to licences specific to the applicant’s circumstances.

Failure to adhere to licence conditions can put a licence at risk and can result in a licence being revoked. Revocation of licence means that the licensee must not carry out lettings work or property management work at any rental property, within Wales, which is subject to, marketed or let under a domestic tenancy. Completing letting and management activities in Wales without a valid licence is an offence and where an offence is established, there are penalties including fixed penalty notices, unlimited fines, rent stopping orders, rent repayment orders and being unable to serve a valid possession order.

Licences issued from and including 1 July 2020

1. Licensees are only able to carry out management of any property for which they are a landlord. This licence does not permit licensees to let or manage properties (doing any tasks as defined in the Housing (Wales) Act 2014) where they are not the landlord. If a licensee wishes to do this they must make an application to Rent Smart Wales (RSW) for an agent licence.

2. The licensee must keep their licence details up to date either within their RSW account at rentsmart.gov.wales or by notifying RSW by telephone on 03000 133344 or by post at RSW, PO Box 1106, Cardiff. CF11 1UA. These details must be updated within 28 days of the change. This includes name, correspondence address, telephone number, email address, the acquisition/disposal of rental properties, any change to letting and/or management arrangements, removing the name of connected persons if they are no longer employed by the licensee, informing RSW of any change of Company Directors or Trustees, and if the licensee is an agent, keep their property list up to date by responding to all property invites within 28 days.

3. Licensees must comply with the ‘Code of Practice for Licensed Landlords and Agents’ licensed under Part 1 of the Housing (Wales) Act 2014’. The Code contains two elements. First and foremost, it sets out what landlords and agents must do to keep to the conditions of this licence. All requirements given as ‘musts’ are already contained in legislation and are requirements licensees should already be aware of due to the training licensees have completed to obtain this licence. The second element of the Code is information on what can be done to raise standards above the minimum level required by law. This is described as Best Practice, and is shown in shaded boxes throughout the document. These are carried out at the discretion of landlords and lettings agents. Failure to meet Best Practice would not be a reason for RSW to revoke a licence.

4. Licensees must ensure that, in addition to complying with the ‘Code of Practice for Licensed Landlords and Agents’ licensed under Part 1 of the Housing (Wales) Act 2014’, they comply with all legislation that applies. This includes both enacted legislation, and any additional legislation that comes into force during the licence period.

5. This licence has been granted based on the following connected persons being appropriately trained: <Names of trained and approved licence and connected users to be confirmed>. If the licensee instructs connected persons (employees; who are on its payroll, etc.) in future who do letting and/or management work as defined in the Act as part of their contract of service they must be suitably trained within 3 months of:

• starting the position or
• if currently employed, within 3 months of this licence being awarded. The licensee must ensure that there is always an appropriately trained director / principal user connected to the licence.

6. Licensees may only appoint an unlicensed person to be the main point of contact and make any decisions relating to their rented properties for an unplanned event out of the licensee’s control, such as a medical emergency, and for a maximum duration of 4 weeks per calendar year.

7. The licensee must ensure that robust management arrangements are in place throughout the period of the licence and in particular ensure that suitably qualified contractors competent in their area of expertise are available to deal with emergencies if / when they arise at the property(s). Emergencies include but are not limited to gas / electric, locksmith and general building issues. The licensee must ensure that the rental property(s) for which they have management responsibilities are visited at appropriate intervals determined by the licensee, taking into account property condition and tenant risks, while protecting the tenant’s right to quiet enjoyment, but in any event the minimum routine visit intervals must be:

• Annually for single dwelling tenancies, and shared houses on a single tenancy, with the first routine visit taking place within the first 2-6 months of the tenancy.
• Every 6 months for a House in Multiple Occupation (HMO), and shared houses on separate tenancies, with the first routine visit taking place within the first 2-6 months of the tenancy.

In addition, the licensee must respond to all matters that arise in between routine visits appropriately and in accordance with the licensee’s reporting maintenance procedure and where applicable, the licensee’s complaints procedures.

8. The licensee must provide tenants with the information and documents listed below in accordance with the relevant legal requirements or at tenancy commencement. The information can be provided to the tenant either electronically or in hard copy.

• Contact details for the licensee
• Energy Performance Certificate for the dwelling
• Gas Safety Record for the dwelling (where there is gas in the property)
• Electrical Safety certificate (for a HMO)
• Security Deposit prescribed information
• The licensee’s written complaints procedure
• A copy of the Rent Smart Wales Tenant Guide
• Details of local waste collection services and collection dates, and
• Any relevant user manuals for appliances supplied by the landlord at the rental property.

9. The licensee must manage any complaints from those involved in their business practices in a professional and coherent manner and have a written procedure in place appropriate to the licensee’s business model. This should include how to make a complaint, and explain how and when the complaint will be responded to. The licensee will provide a copy of their written complaint handling procedure to RSW on request.

10.The Renting Homes (Wales) Act 2016 will be implemented during the term of the licence. The licensee is required to complete RSW approved training on these changes prior to or within 3 months of the Act being implemented.

11. This licence has been granted on the condition that the licensee is considered fit and proper. Should this change and the licensee or anyone associated with the licensee is convicted of an offence during the period of the licence the licensee must notify RSW within 14 days of being convicted. Please note driving offences are exempt.

12. Where RSW has cause for concern in relation to fitness and propriety or breach of licence conditions, the licensee must assist RSW or the Local Authority (acting on behalf of Rent Smart Wales) to secure access to any properties let and/or managed by the licensee in accordance with legal requirements giving at least 24 hours’ written notice.

13. The licensee is permitted to use the RSW logo to market themselves. However, this must be used in accordance with the brand guidelines at all times. A copy of the brand guidelines can be viewed online on our Downloads page or the licensee can request a copy to be sent.

Licence conditions typically added to Agent Licences can be found here.

For licences issued from 21/05/2018 to (and inc.) 30/06/2020

Note: For licences issued from 21/05/2018 to (and including) 30/06/2020. RSW may add additional bespoke conditions to the licence which would be relevant to the licensee’s circumstances.

1. The licensee is only able to carry out management of any property for which the licensee is a landlord. This licence does not permit the licensee to let or manage property(s) (doing any tasks as defined in the Housing (Wales) Act 2014) where the licensee is not the landlord. If the licensee wishes to do this, they must make an application to Rent Smart Wales for an agent licence.

2. The licensee must comply with the Code of Practice for Landlords and Agents licensed under Part 1 of the Housing (Wales) Act 2014. The Code contains two elements. First and foremost, it sets out what landlords must do to keep to the conditions of this licence. All requirements given as ‘musts’ are already contained in legislation and are requirements the licensee should already be aware of due to the training the licensee has completed to obtain this licence. The second element of the Code is information on what can be done to raise standards above the minimum level required by law. This is described as “Best Practice”, and is shown in shaded boxes throughout the document. These are carried out at the discretion of landlords and lettings agents. Failure to meet Best Practice would not be a reason for RSW to revoke a licence.

3. The licensee must not instruct an unlicensed person/company (an agent) to assist or fully undertake letting or management work at the licensee’s property(s), except for the circumstances described in point 4 below.

4. Licensees may appoint an unlicensed person to be the main point of contact and make any decisions relating to their rented property(s) for a short period of time such as a holiday or hospital stay which is less than 4 consecutive weeks. If a licensee is away/unable to manage their property(s) for 4 or more consecutive weeks, they must appoint a local* licensed agent to let or manage their property(s) on their behalf for this time.

5. a) If a licensee’s main residence/business address is outside England, Scotland or Wales, the licensee must either appoint a RSW licensed local* agent, or employ a locally* based member of staff to assist in the management of the rental property(s).

b) If a licensee’s main residence/business address is located in England, Scotland or Wales but is 200** or more miles from the rental property, the licensee must either appoint a RSW licensed local* agent, or employ a locally* based member of staff to assist in the management of the rental property(s). Should either of these conditions apply, the licensee will have 8 weeks from the date their licence is granted, or from the date this condition applies, to put such person(s) in place”.

*locally based / local means somebody who lives in England, Scotland or Wales and is within 200 miles (i.e. less than) of the rental property.

**the mileage is calculated through the use of Google maps using the shortest distance calculator. The mode of transport considered is by car and the time the route will take between the licensee’s home or business address and the rental property at the furthest distance must be reasonable and viable.

6. If the licensee’s circumstances change and they begin employing staff (who are on the licensees payroll, etc) and they undertake letting or management activities as defined in the Act, as part of their contract of service they must be suitably trained within 3 months of:

• starting the position or
• if currently employed, within 3 months of this licence being awarded.

7. The licensee is permitted to use the RSW brand as a licensed landlord. However, this must be used in accordance with the brand guidelines at all times. A copy of the brand guidelines can be viewed online on our Downloads page or the licensee can request a copy.

8. The licensee must keep their licence details up to date either within their RSW account at www.rentsmart.gov.wales, or by notifying RSW by telephone on 03000 133344 or by post at RSW, PO Box 1106, Cardiff. CF11 1UA. These details must be updated within 28 days of the change. This includes removing the name of connected persons if they are no longer employed by the licensee and informing RSW of any change of Company Directors or Trustees.

9. This licence has been granted on the condition that the licensee and any staff undertaking letting and management activities are considered fit and proper. Should this change and the licensee or anyone the licensee is associated with is convicted of an offence during the period of this licence, the licensee must notify RSW within 14 days of being convicted. Please note driving offences are exempt.

Standard Conditions on all agent licences can be found here.