Licencing – Financial tsunami incoming?

Licencing – Financial tsunami incoming?

9:53 AM, 8th April 2022, About 2 years ago 8

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With Selective Licencing now coming to Birmingham I have been trying to get a grip on what this means financially by reading other landlords’ experiences/demands by councils to achieve certain requirements.

Has anyone managed to get a ball park figure of what it has cost them to ‘upgrade’ a standard property to tick all the boxes required for Selective Licencing in their area? Can someone provide some examples please?

How do you then work out how this equates to what a rent increase will need to be?

Do you spread the works over the length of the licence period (over 5 years) or do you calculate it over 7 years or longer to work out a monthly increase?

Any help very welcome


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Joe Gervin

12:24 PM, 8th April 2022, About 2 years ago


As a Director of LPS Real Estate in Liverpool we have done a video recently on Licensing in Liverpool. This may help a little:

Mick Roberts

14:09 PM, 8th April 2022, About 2 years ago

Well done Joe on the video.
Ooh that reminds me, I did sarcastic Selective Licensing video when they was bringing it in 4 years ago, here's my video:

Since then, costs have maybe been more if u leave with Letting Agent cause u can't cope. And Nottingham are bringing in more conditions on 5 year renewal or new licenses.
But even though it will sap your time at beginning & make u have Mental Health breakdown, u will end up better off financially eventually as Benefit tenants can never ever move again-See below-So u have no voids, they won't ask for any repairs cause they've seen all their mates been evicted cause of Selective Licensing & Landlords selling.

And with new tenants u have no loyalty to, u can charge the earth as supply will be reduced & demand increased. Well done Govt & Councils.

Most of u r very good. But are u perfect? Read Licensing conditions and tell yourself:
1. Could u comply with all them.
2. Would u take any tenant on that wasn't the most prim proper person ever?
3. If u was a landlord getting older, would u want to be dealing with that for EVERY house EVERY tenant?
4. Could u be doing with giving out 200 pages to each tenant each house.
5. Would u take a Benefit tenant on after being told u had to comply with them conditions?
Selective Licensing conditions Feb 2022

Mick Roberts

14:18 PM, 8th April 2022, About 2 years ago

Reply to the comment left by Joe Gervin at 08/04/2022 - 12:24
Just fully watched your video Joe, some stuff scary for us Landlords that's been doing it 25 years without the latest rent software. And my Benefit tenants that pay a bit here & there & won't/don't want to sign with Letting Agent who can do these more stringent forms etc.

They just creating more homeless, tenants that hasn't got a problem, to ask landlords to have portals to see rent statements etc. gonna be more dozens of hours each year.

Reluctant Landlord

17:54 PM, 8th April 2022, About 2 years ago

thank for the info and links all - watched and read.

Mind blown

Can anyone tell me when the date for licencing actually goes LIVE - is it the date of the deadline for you to apply, the first or last date of instalment (if there are any) or another date?

Is the licencing applicable to situations where notice for possession is already in place as a result of knowing you will not be able to meet the Licencing requirements?

Thinking of taking this completely ill thought out SL and making the Council's head spin by taking the requirements literally.

I would give notice to all my tenants on 31st March on the basis I would not be able to fulfil the SL requirement of having taken references for my tenants pre tenancy and clearly I could not do this retrospectively either.

Having known about this before the licencing deadline and acted accordingly, I would surely have exemption from having to licence the property going forward especially if it were not my intention to rent after possession is gained. I would therefore not be liable for licencing the property until this were the case.

Anyone know what happens if the tenant refuses access to carry out any works required by licencing at the point that licencing is deemed as
'in force'?

Mick Roberts

5:55 AM, 9th April 2022, About 2 years ago

Reply to the comment left by DSR at 08/04/2022 - 17:54
In Nottingham, they told us the date a few months before from memory. 1 Aug 2018 worst day of my life & the start of the worst 30+ years of Benefit tenants lives coming.
1 Aug holiday season.
1 Aug 2 months before Universal Credit came to Nottingham for all families.
You couldn't make it up.
From memory, about 6 weeks notice before they gave us all conditions & Landlords not knowing till then whether they wanted to sell or not.
6 weeks I had to do 36 houses in the Licensing area.
6 weeks I had to do 36 EICR's.
6 weeks 32,000 (their numbers) Landlords had to get all electricians on Planet Earth to Nottingham.
6 weeks to get floor plans, measurements on each house.
6 weeks to get thumbturns fitted on external doors on each house.
And so on.

They gave me an impossible task. They said Well u shun't have so many houses Mick.
I said Hang on, I did't buy all these houses in 1 week. That would have been impossible.
I don't get all my boilers break in 1 week.
I don't have to fit 36 kitchens in 6 weeks. This would be impossible.
I fit approx 6 kitchens a year. 6 boilers a year. 6 bathrooms a year. Not 36 of everything in 1 week.
The said Pay someone to help with the admin.
I said So u want to me to increase rents. They smirk & come up with bull.
I had to send me SAME passport upload online 36 times. They are proper thick to not listen.

Where I totally had em & would have took to any tribunal, I said it's physically impossible to pay all the License fees in 1 month. My credit card has a limit. You are asking for the impossible.
Also, I get so many rents in, so much outgoings. You are asking for an impossible amount of outgoings in 1 month, I would have never been able to buy the houses in 1 month.

I believe it is the date of the deadline.
They had a 3 month temporary exemption thing people could apply for, got a mate doing one now for imbecile Licensing torture.
I've said same, my tenants can't comply with this.
They now say Demand references. As I said Benefit tenants will never be able to move again. They can't anyway, but that would have been even worse for 'em.

I've had some of my tenants write in & say We're not doing this & that, we was here way before Licensing. Licensing at moment has left 'em alone. They never envisaged some tenants would write in & be against it. They have been totally shocked by this. They thought all tenants hated all Landlords.


12:35 PM, 9th April 2022, About 2 years ago

Who is going to house the tenants who cannot provide references? Who is going to house the tenants with bad references?


17:55 PM, 9th April 2022, About 2 years ago

Sell up and go elsewhere- it’ll end up a lot ‘cheaper’ and a ‘lot safer’ !!!

Mick Roberts

4:45 AM, 10th April 2022, About 2 years ago

Reply to the comment left by David Price at 09/04/2022 - 12:35
That's what's happening in Nottingham if anyone else of u out there has houses in Nottingham, u will know what I mean.
My close colleagues who I talk to regular who house Benefit tenants, they in same boat as me, their current benefit tenants just aren't going, no one will take them. As that 'Demand references' is making Landlords think Ooh looks scary & many Benefit tenants can't provide them. But interpreting it, it is just that, Demand. We han't got to get them, just Demand. But to me & many, Demand means Get.

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