Landlords and letting agents need to ensure that they comply with the conditions of Selective Licence schemes prior to renting out residential properties in designated areas.

‘Selective Licensing’ is a regulatory tool which local authorities across the UK can choose to introduce to monitor and regulate landlords in areas of low housing demand or where high levels of anti-social behaviour are occurring.

In the specific areas where selective licensing is applied, all landlords have to have a licence to be able rent out a property. A licence will typically cost between £400 and £600 and this will be for a five year period. They must be able to demonstrate that they are acting within the law and managing their properties in a professional while keeping them in good condition.

Conditions of the licence include fire, gas and electrical safety, obtaining appropriate references prior to any tenancy being offered, keeping properties visually respectable and ensuring that properties are well managed.

According to Landlord Assist, the nationwide tenant eviction and referencing firm, landlords need to understand that it is deemed a criminal offence to operate a privately rented property in selective licensing areas without a licence and that any breaches can result in fines of up to £5000.

Stephen Parry, Commercial Director at Landlord Assist, said: “We are aware of a recent case in Leeds involving a licensed landlord who accepted false references from his tenants. As a result the landlord was prosecuted for breaching the conditions of the Selective Licensing scheme and ordered to pay a £1000 fine plus almost £2500 in costs. The high fines handed to the landlord should act as a reminder to landlords that legal duties associated with Selective Licences must be met."