Landlords of HMO’s in Coventry may face further costs with a new licensing scheme being introduced in May 2020. A Mandatory Licensing Scheme for HMOs has been in place since 2006 but the additional licensing will include smaller multi occupancy properties in some cases. Coventry City Council are pressing ahead with additional licensing as of the 4th May 2020 – although they have stated that they are easing some measures.
For clarity under the scheme, you will need an additional HMO license if:
If you operate a house in multiple occupation that is shared by three to four tenants living in two or more households or
If you operate a house which was converted into self-contained flats without complying with the appropriate building standards (converted after 1990).
Paul Barnes, Director of Loveitts adds: “The council have now set up an online service to enable set up of this scheme. Licenses can be issued for up to 5 years, can be issued right up and until the end of the scheme and in some cases run beyond the life of the scheme. It is my understanding that this license cannot be transferred between different owners and approximately 4,000 properties will be affected by the new licenses. It is something else for landlords to think about and in these cases property managed by letting agents are looked upon favourably…it maybe the time to hand over your portfolio to a letting agent who can assist with the regulations that come from this.”
If you would like further information please do not hesitate to contact Paul Barnes on 024 76228 111.