Who Needs to Comply?

There are two main requirements under Rent Smart Wales:

• Landlord Registration: Every landlord who owns a rental property in Wales must register themselves and their properties with Rent Smart Wales. This is a one-off registration, but it needs to be updated if your details or property portfolio changes.
• Landlord or Agent Licensing: If you, as a landlord, manage your own rental property (e.g., finding Contract Holders, collecting rent, arranging repairs), you must obtain a landlord licence. If you use a letting agent to manage your property, then the agent must be licensed. An agent cannot manage property in Wales without a licence.

Important: Even if you use a licensed agent, you, as the landlord, still need to register your property.

The Licensing Process

To obtain a licence, individuals (landlords or agents) must:

• Complete Approved Training: This training covers key aspects of housing law, including the Renting Homes (Wales) Act 2016, Contract Holder rights, and landlord responsibilities. Training can be completed online or in a classroom setting.
• Be Deemed 'Fit and Proper': Rent Smart Wales assesses whether an applicant is a 'fit and proper person' to hold a licence. This involves checking for any relevant unspent convictions related to housing, fraud, or violence, and considering any previous breaches of housing law.
• Pay the Fee: There is a fee associated with the licence application. Licences are valid for five years, after which they must be renewed.

Benefits of Rent Smart Wales

While compliance is mandatory, Rent Smart Wales offers several benefits:

• Increased Professionalism: It raises the overall standards and professionalism within the Welsh private rented sector.
• Clarity for Landlords: The training ensures landlords are well-informed about their legal obligations, reducing the risk of unintentional breaches.
• Protection for Contract Holders: It provides Contract Holders with assurance that their landlord or agent has met certain standards and can be held accountable.
• Centralised Information: The register provides a central point of information for local authorities and Contract Holders to verify compliance.

Enforcement and Penalties

Local authorities are responsible for enforcing Rent Smart Wales requirements. Failure to comply can lead to significant penalties, including:

• Fixed Penalty Notices: For non-registration or non-licensing.
• Prosecution: In more serious cases, leading to unlimited fines.
• Rent Stopping Orders: Local authorities can issue orders preventing landlords from collecting rent.
• Rent Repayment Orders: Contract Holders can apply for Rent Repayment Orders, requiring landlords to repay up to 12 months' rent.
• Inability to Serve Possession Notices: Landlords who are not registered or licensed cannot issue 'no-fault' possession notices (Section 173 notices) to regain their property.