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Legal matters

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EA issue (we're the landlords)

12 replies

drspouse · 28/09/2018 22:23

We rent out my ex-residence since DH and I moved away. It's got 3 bedrooms but one is quite small. New tenants moving in this week (using all 3 bedrooms) on a one year AST.
A week ago the EA told us about the council's new requirement for a licence for registration for smaller flats - it's only in some councils.
We have to get a licence before the end of this tenancy which lasts 5 years and the cost (£1000) is obviously OK to take out of 5 years' rent.
However the third bedroom is too small for an adult sharer under the licence. I think they'll give us the length of this tenancy as leeway to sort it out.
But the EA must have known the regulations were coming in and yet took our/the tenants' money for what is essentially an illegal tenancy.
And we can't let it out to three sharers (we'll be fine with a couple/family but they of course will draw less commission Hmm) after a year or so, so the 5 years licence will be very expensive for a year.
Seems mighty convenient for the EA.
Not sure what we can do but anyone think a stern letter from the solicitor would help?
Would the AST be null and void because it's not covered by the licence?

OP posts:
theworldistoosmall · 28/09/2018 22:29

Surely as the owner, it's also down to you to know the legalities surrounding renting?

drspouse · 29/09/2018 08:42

You are right, it is, but if the EA have accepted an illegal tenancy? Is it even valid?
We did look up the law and in fact looked up the current licencing position ON THE COUNCIL WEBSITE over the summer and it only gave the "mandatory" licence. It had no information about a change.

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Floyella · 29/09/2018 08:47

I'm a landlord, and I see this sort of thing as my responsibility to check. Same as gas safety certs etc.

drspouse · 29/09/2018 08:53

But it's only possible to check if the information is public...

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Floyella · 29/09/2018 09:18

Rules change, and you deal with them.

If it wasn't public, the EA isn't likely to know.

SouthWestmom · 29/09/2018 09:21

What does an adult sharer mean? Is it going to be three separate couples living there?

LIZS · 29/09/2018 09:26

Ll responsibility I'm afraid. The changes have been public for a while, mainly affecting hmos. How many occupants will there be?

SouthWestmom · 29/09/2018 09:57

And we can't let it out to three sharers (we'll be fine with a couple/family but they of course will draw less commission )

Less rent too?

drspouse · 29/09/2018 10:09

We have 4 sharers (3 households because one is a couple). We've always had 3 sharers, 3 bedrooms, 3 households

We would prefer less rent and a family/couple who'd stay longer and do things like change light bulbs and use the garden, but the EA kept telling us they couldn't get anyone to take it on that basis (I've posted about this issue before).
We are fairly sure they haven't even tried to get a couple or family and just want more commission.
These changes as they apply to less than 4 households are on a council-by-council basis and were NOT publicised for this council in August.
So we are now questioning if the tenancy is even legal.

OP posts:
drspouse · 29/09/2018 10:13

The changes have been public for a while, mainly affecting hmos
The changes for smaller properties are optional for each council. In fact we just found out that for some wards in the council it applies to even 2 households (ours is 3+).

OP posts:
ImaginaryCat · 29/09/2018 10:19

Slightly off topic but why are so many people quick to say "your responsibility"? I pay my letting agent 12% of the rent because I don't have the headspace to learn about these regulations. He knows the law relating to my property, he relays to me, in idiot-proof terms, how this affects the property and what I need to do.

And I certainly won't be arranging the gas safety certificate. In my 20 years of being a tenant none of my landlords ever did that, it was always the agent. And now I'm a landlord I expect my agent to do the same. Otherwise WTF am I paying them for?

drspouse · 29/09/2018 11:43

Well exactly!

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