Waltham Forest Council Private Rented Property Licensing (PRPL) Scheme Requirements & Property Standards To reduce anti-social behaviour and improve the lives of our residents, most private rented properties require a licence. walthamforest.gov.uk/prpl 1 The Scheme Requirements & Property Standards Scheme Requirements Licence Conditions Under the Housing Act 2004 there are certain conditions that are mandatory in any licence issued under parts 2 and 3 of the act. Click here to view the Housing Acts Mandatory Licence Conditions. Further, the Council, under section 90 of the Housing Act 2004 is able to include additional conditions. To see a list of the Councils additional conditions visit PRPL Licence Conditions. All properties and licence holders must comply with the licence conditions. Legal obligation to hold a licence Under the PRPL scheme it is an offence for any applicable privately owned property to be offered for rent without a licence. If a property is unlicensed, the landlord / owner or agent cannot serve notice to their tenants under section 21 of the Housing Act 1988 (for tenancies created after the1st April 2015) Landlords could be fined up to £5,000 for every breach of the conditions of licence, up to a maximum of £20,000. Additional methods may also be introduced such as: • a Management Order, to take control of the property from the landlord • a Rent Repayment Order (RPO) for up to 12 month’s rental income The Applicant The application form for a PRPL can be completed by the property owner, the managing agent or a 3rd party working on behalf of these parties. The person completing the form is known as the applicant. 2 Notification to Interested Parties Certain parties must be notified in writing that you have made this application or be provided with a copy of the application. To help you with this a Notification to Interested Parties form has been provided for your use. Applicant Declaration Within the application form the applicant will be asked to declare that: Notice has been served to all interested parties that this application has been made, and that; The information contained in this application is correct to the best of your knowledge The Licence Holder The Housing Act 2004 requires that the Council can only grant a licence to the most appropriate person, and in most circumstances, this would be the owner of the property or the named landlord on the tenancy agreement. The licence holder is the person who would usually be in control of the property and is most likely to be responsible for its management. The licence holder must be a ‘fit and proper’ person (see below for detailed explanation). They should be able to authorise, organise and pay for essential repairs to the property. They must be available to the tenants should questions or problems arise in respect of the property, and must have the means to resolve them where reasonably practical. Only one license holder is required even if the property is owned by more than one person, e.g. a husband and a wife. If the proposed licence holder is part of a company, you must provide the address of the registered office and the names of the company secretary and directors. If the proposed licence holder is part of a partnership or trust, you must provide the names of all of the partners and trustees. You can be a licence holder and live abroad though you will need to satisfy the Council that you have in place appropriate management of the property. 3 When completing the form you will be asked what responsibilities the proposed licence holder has to the property and tenants. For example; does the proposed licence holder own the property, manage the property and collect rent for the property? When answering this question ensure you select all that apply. For example; if you are the owner of the property and you manage the property and collect rent yourself, you should select all of those options. Fit and Proper Person Under the Housing Act 2004, the licence holder and the property manager must be ‘Fit and Proper’ persons in order to undertake the responsibilities of managing a private rented property. The Fit and Proper person test applies to any person managing the premises and any director or partner in a company or organisation which owns or manages the property. This means having no serious record of poor management or an outstanding criminal charge that is inconsistent with operating as a landlord. It helps to confirm that the landlord is both reputable and capable of following good tenancy management. Applicants that are not considered to be “fit and proper” persons are unable to hold a licence. They will be required to take positive action to enable them to continue renting their properties – such as employing a managing agent. To assist the Council in making proper assessments of suitability, details about previous convictions for criminal offences must be disclosed. Similarly, if you are convicted of any relevant offence(s) during the licence period you must notify the council immediately. The Council has to assess whether the proposed licence-holder is a ‘fit and proper’ person to hold a PRPL. In carrying out this assessment the Council will have regard to all the circumstances of the application and specifically whether the proposed licence-holder or anyone associated with them has: (a) committed any offence involving fraud or other dishonesty, or violence or drugs, or any offence listed in Schedule 3 to the Sexual Offences Act 2003 (offences attracting notification requirements); 4 (b) practised unlawful discrimination on grounds of sex, colour, race, ethnic or national origins or disability in, or in connection with, the carrying on of any business; or (c) contravened any provision of the law relating to housing or of landlord and tenant law. Please be advised that if the Proposed Licence Holder or Manager fail the Fit and Proper Test, your application may be rejected and the licence application fee will not be refunded. Spent Convictions Under the Rehabilitation of Offenders Act 1974 there is no requirement to provide details about previous convictions which have been ‘spent’. A conviction becomes ‘spent’ after a certain length of time, which changes depending upon the sentence and the age of the person at the time of conviction. The periods are halved if the conviction took place when aged 17 or less. Please see table below for time periods regarding spent convictions Sentence 6 months to 2 years imprisonment Period of good conduct needed for conviction to be spent 10 years Less than 6 months imprisonment 7 years Borstal training 7 years A Fine or Community Services Order 5 years Probation Order Conditional Discharge, or Bound over An absolute discharge 1 year 6 months If a person is sentenced to more than 2 years imprisonment, his/her conviction can never become ‘spent’. 5 If you have any doubts about whether you have to declare a previous conviction, you should contact your solicitor, probation officer or the Citizens Advice Bureau. Transferring Licences Licences are not transferable. When a property changes ownership or a new licence holder is sought, the new landlord / licence holder must make an application for a licence. No reimbursement of the licence fee previously paid will be made for any unexpired period of the licence and a full fee will be required from the new applicant. Variation to a Licence Where a licence holder wishes to alter the terms of their licence, for example when there is a change in management details or facilities, they may apply for a Variation to the Licence. To apply for a variation, send an email to the PRPL team with full details of the amendment. As appropriate a revised licence will be issued. Remember that you cannot transfer a licence between properties and people and in the event of wanting to change these details; you would need to apply for a new licence. Grounds for Licence Refusal A licence application may be refused for the following reasons • You have failed to or refused to provide all of the necessary information to support your application • The proposed licence holder is not considered the most appropriate person to be the licence holder • The proposed licence holder does not meet the criteria for a ‘fit and proper person’ • The proposed licence holder has failed to demonstrate that they have the ability to effectively manage the property(s) • The property does not meet the PRPL Licence Conditions 6 Tenant References For any property let after 1st April 2015, prior to letting the property, the landlord must obtain a reference from a previous landlord for any new tenants and must provide a reference to a new landlord for an outgoing tenant. A house is a very valuable asset and landlords should want to ensure, as far as possible, that they are passing this asset to a responsible person who will treat it with care and respect. This practice is already used by many landlords in Waltham Forest and has proven to be successful. We accept, that there are circumstances where this may not be possible i.e. tenants new to the UK. Please note that it is not mandatory to supply tenant references at the time of your application, but that copies of these will be requested when your licence is subject to audit and compliance. Tenancy Agreements For any property let after 1st April 2015, the landlord must provide the occupiers with a written statement of the terms and conditions on which they occupy the house (e.g. a tenancy or licence agreement). Other Licensed Properties Licence Holders holding licences for private rented properties or HMO’s that are licensed under the Housing Act 2004, whether in Waltham Forest or any other area of the UK, need to provide a list of all properties for which a licence is held. The list must include: the property addresses, the name of the licence issuing authority and the date of the licence. Click here to see a template for recording a list of Other Licensed Properties. 7 Property Standards Housing Health and Safety Rating System The Housing Act 2004 changed the way that local authorities assess housing conditions. We will now look at the condition of properties using a risk assessment approach called the Housing Health and Safety Rating System (HHSRS). This HHSRS does not set out minimum standards. It is concerned with avoiding or, at the very least, minimising potential hazards. This means that landlords should also review conditions regularly to try to see where and how their properties can be improved and made safer using regular and effective maintenance, safety checks on gas and electrical installations and timely repairs. They should also ensure that properties are kept free of hazards that impact upon the tenants. The Licensing Team will use this method to determine if a property needs work in order to bring it up to the required standards. Properties should not have any Category 1 or significant Category 2 hazards and any properties found with these will be referred to the Housing Standards team for further action. A standard condition of any licence is to ensure that the property is adequately managed and has satisfactory maintenance arrangements, as well as property and tenancy management procedures. Gas Safety Certificate If Gas is supplied to the property, a valid gas safety certificate must be uploaded with the application and must be in place for the duration of the licence. Electrical Safety Certificate For all electrical installations there must be a valid current Domestic Electrical Installation Periodic Report Fire Risk Assessment A Fire Risk Assessment is a comprehensive evaluation of all fire risks and safety at the property. It would include details of the persons at risk, potential fire 8 hazards, fire prevention and management, fire safety equipment, fire safety training, means of escape and evaluation of emergency fire procedures. All properties must be subject to a fire risk assessment this can be carried out by the landlord, property owner or manager of the property. To assist you in a Fire Risk Assessment please visit: https://www.gov.uk/government/publications/fire-safety-risk-assessment-5step-checklist All fire detection systems, means of escape and fire fighting equipment must be adequately maintained and tested at least annually, in accordance with the manufacturer’s guidelines. Smoke Alarms Smoke alarms should comply with BS5446 – Part 1 installing a smoke alarm is easy to do and only takes a few minutes; just follow the manufacturer’s instructions. Whilst installation is simple, you do need to consider carefully where they will be sited and it essential to maintain them once they’re installed. Every year people are killed in fires because their alarms failed to work due to a flat or missing battery. Please note that it is now a legal requirement for all tenanted properties to be fitted with smoke alarms. https://www.gov.uk/government/news/tenants-safer-under-newgovernment-measures Number of smoke alarms needed The more alarms there are in the property the safer the tenants will be. Fires can start anywhere, so the more that are fitted, the higher the level of protection. If the property is on one level fit an alarm in the hallway between the living and sleeping areas and one in the living area. If the property has more than one level fit one alarm at the bottom of the staircase and further alarms on each landing with an additional alarm in the living area. If the property has TV’s or other large electrical appliances in bedrooms, you should also fit a smoke alarm there. Where to fit alarms Always put smoke alarms where they will be heard throughout the home, particularly when occupants are asleep or when doors are closed. Ideal places are at the top of staircases, on stair landings and between living and sleeping 9 areas. Fit alarms on the ceiling, as near as possible to the centre of the room, hallway or landing. The alarm should be at least 30cm (12 inches) away from any wall or light. Don’t put a smoke alarm: • in a kitchen or bathroom where it could be accidentally triggered by cooking fumes or steam (heat alarms can be used in kitchens) • where it can’t be heard while the occupants are asleep • in a garage where it could be triggered by exhaust fumes • on a wall. Smoke rises straight up towards the ceiling and will set the alarm off more quickly if the device is fixed to the ceiling – giving more time to escape For further advice on the type, number and location of smoke alarms please go to https://www.gov.uk/firekills Energy Performance Certificate For all tenancies issued after 1st October 2008 a valid EPC must be held and available to new tenants Habitable Rooms If there is more than one household living in the property, you are required to declare the sizes of habitable rooms. This information will be used to calculate the permitted number of occupants for the property to be licenced. Habitable rooms include bedrooms, living rooms and dining rooms that are or could be used for sleeping accommodation. Rooms not considered as habitable include communal spaces, hallways, bathrooms, kitchens or rooms below 4.6sqm / 50sq ft. Using the instructions below measure and record the sizes of habitable rooms and upload this document on the document upload page at the end of your application. Click here to see a template for recording Habitable Room Sizes. How to measure the area of a room Length Length x Width = Area Width Standard (rectangle or square) rooms 10 Use a tape measure, pencil and paper to record the length and width of the room. Once you have these two measurements recorded, multiply them together to get the total area of the room. Odd shaped rooms If a room is not square or rectangular, you can find its area by dividing the shape into smaller rectangles, calculating their areas, then adding them to find the total area. There is often more than one way to partition a room into rectangles; you will arrive at the same final answer no matter how you divide up the area. For more complex shape rooms please follow the advice on WikiHow 11