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i have been in the fortunate position that our Council has not imposed Selective Licensing widely. Our only experience is that a couple of years ago we had a teeny-bopping Corbynista Head of Housing who imposed some limited Selective Licensing in the belief that it would help solve everything from Domestic Abuse to Street Littering.
DL has argued that such fees are a business expense to be budgeted and absorbed. I would prefer some way of completing the feedback loop, so Councils are held to account for their actions.
I am wondering about the value of communicating the cost to Tenants, and making a comparison (for example) with the far lower fees in Scotland. Around here should we get £500 per 5 years plus processing etc it would amount to an extra 1-2 weeks pa costs on the average rent. Probably not dissimilar to the bullet DL just dodged in the aborted Newcastle scheme.
One option is to propose a rental increase, and explain why.
Another is to identity the cost in advance.
A third would be to identify specific regulatory costs in an Annual Statement. Does everyone send these out anyway?
What do people already in Selective Licensing Areas do?
All of the above suggestions seem to be in contravention of the Tenant Fee Ban imho.As a landlord, you factor your costs into the rent. If you need to increase the rent to cover your costs, then you can try that, but if it is above the market rate, then you will likely struggle to find a tenant. (This is where a Zero Deposit option might be a useful tool).If you can't cover your costs, then the numbers are telling you that your property does not stack up financially, so you may have to consider other ways to mitigate your costs, such as re-mortgaging, moving to self management, reducing your costs by getting more competitive quotes for products and services etc.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I dont think you could pass this on to a Tenant other then raising the rent because your costs have risen
Your right I was very lucky to miss this new Licence in Newcastle its going to cause some real issues down the road I know that
From an investor point of view It will be interesting to see where house prices go in the Five Areas in Newcastle
I dont think it can help prices to go up But of a lot of Landlords sell because of Licence and other costs rising it could well depress the areas
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
But this this a kind of extra tax that has been introduced most likely after the tenant has moved in so why cant you show the tenant in the same way Vat is added ie rent + Council Licencing fee = Total. So the tenant knows that the Council is getting that money not the greedy landlord
I think you can Just raise the rent
But You could make it clear why I worked out in rough figs the average 2 bed flat in a licance area would cost around 3K per property
so you could raise the rent by around £50 per month to cover the cost
an explanation letter to the tenant could serve to reinforce why the rent has gone up by more than it would have
The council forget its the Tenant who pays the costs at the end of the day
and I think it might also be a good thing to send a Copy of the letter to the Local MP
If every Landlord who increased rent did this it would send a message to the Law makers that its costing the Tenant more not the Landlord
Agreed - a cost breakdown to the tenant is the way to go (but from a tenants fee ban legal point of view it's all just 'rent')
When it was proposed in my area (and still bubbling along 2 years later) I wrote to all my T that the council's 'few pounds a week' - would mean a £16 PCM month increase for them.
DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.