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HOUSES IN MULTIPLE OCCUPATION: A GUIDE FOR LANDLORDS
PART 2: HOW DO I APPLY FOR A LICENCE?
You must contact your local authority for a licence application form and information about the procedure, the standards you will need to meet, and the fees. This section outlines what you can expect during the application process.
Some parts of the procedure are set out in law, in the Civic Government (Scotland) Act 1982. Guidance for local authorities on how to operate the licensing system is also provided by the Scottish Executive, but each authority will have slightly different procedures.
What happens when I apply for a licence?
You submit your application form to the licensing authority, together with the appropriate fee.
You must also display a notice outside the property informing the public of the application and how to submit objections. The licensing authority will provide you with the notice to fill in and display. You must make sure it stays on display for 21 days. If the site notice has not been properly displayed, your application may be refused.
The licensing authority has to satisfy itself:
- That you, and any manager of the HMO, are a fit and proper person to hold a licence.
- That the property is suitable for use as an HMO, for the proposed number of people.
When granting the licence, the authority can also attach conditions, and it will want to be confident that these conditions will be met throughout the period of the licence. The authority can make any reasonable enquiries it thinks fit to gather information to help it decide on these issues.
The authority must copy the application to the Chief Constable for the area, who will tell the authority if you or the manager have any relevant convictions. He may also provide information about any relevant complaints against you or the manager, or in relation to the property.
The authority must also copy the application to the fire authority, who will be involved in deciding whether adequate fire precautions and means of escape are provided.
Officers of the licensing authority (and probably the fire authority) will need to visit the property to check the physical standards and facilities, and you will be required to provide evidence of appropriate management standards, such as the lease or occupancy agreement you use, and how you record deposits and rent payments. You will also need to provide a gas safety certificate and documents to show that electrical equipment and other systems are safe and properly maintained. Officers of the licensing authority have rights of entry and inspection to make these checks. They will tell you what changes, if any, need to be made before the authority will consider the property suitable for use as an HMO.
Any person may make an objection to a licence application. Objections must be in writing, must specify the grounds of the objection, and must include the objector's name and address and signature. You will be sent a copy of any objections and have an opportunity to respond.
The property inspection
The licensing authority will contact you to arrange a convenient time for officers to visit to inspect the property. There are often two or more officers involved - the authority should tell you who to expect. You must inform your tenants of the visit. In most cases you should give them at least 24 hours notice, in writing, that you (or your representative) and the inspectors will need access to their rooms. (This may not be necessary if cleaners, maintenance staff or support workers regularly have access.)
Inspecting officers are asked to be sensitive to the fact that they are visiting someone's home, and to take account of religious or cultural issues as appropriate. The licensing authority should be able to arrange interpreting services if necessary. If your tenants have particular needs that may require special arrangements, you should discuss this with the licensing authority when arranging the visit. For example, it may be possible to schedule extra time for officers to meet with vulnerable tenants in a communal area before inspecting their private rooms.
Contact with tenants
One of the areas which needs to be assessed in determining an application for an HMO licence is the management of tenancy issues. Much of this can be checked as a desk-based exercise, for which you will be required to submit copies of the information provided to tenants, rent records etc. However, the licensing authority will also want to satisfy itself that the procedures set out in writing are actually put into practice. To do this they may contact your tenants directly. This will usually be done in writing, by leaflets, by letter, or by a questionnaire asking about key issues. If any concerns are identified, these will be raised with you and you will be given a chance to respond. The licensing authority will not usually identify any tenant who has raised concerns. It may be the case that the authority identifies something, from tenants' comments, which does not meet their requirements, even though tenants may not be aware of it as a problem.
Is it true that some landlords can inspect their own property?
The Scottish Executive has developed a scheme known as "verification by licensee's declaration", which local authorities may use if they wish. It is for each local authority to decide what categories of landlord it is willing to consider for this scheme. It is likely that, initially, it will be restricted to publicly accountable organisations such as Universities and Registered Social Landlords (Housing Associations). Within those categories, each landlord will have to qualify for the scheme by establishing a good track record of maintaining the standards required and complying with licensing conditions.
When a landlord who has qualified for the scheme applies for renewal of their licence, the licensing authority will require them to sign a declaration, confirming that they continue to meet the authority's required standards. The licensing authority will still require relevant safety and maintenance certificates, and will take into account any complaints or other information they have about the property. There will still be public notification of the renewal application and the opportunity for objections to be made.
If you are interested in applying to use the licensee's declaration, you should contact the licensing authority for details of their requirements.
How does the licensing authority make its decision?
The licensing authority will take into account all the information they have gathered about the application, including any objections and any licensee's declaration. The authority must notify you of the results of their enquiries, and give you a copy of any objections. They must give you at least an opportunity to comment in writing on any objections and other information, and they may give you and any objectors an opportunity to be heard in person. You will be informed of the authority's decision in writing, within 7 days of the decision being made, and your licence will be sent to you. If you do not manage the HMO directly, the manager will be named as a joint licence-holder.
Is there an appeals process?
Either the applicant or an objector can appeal to the sheriff against the decision of the licensing authority to refuse or to grant a licence. The appeal must be made within 28 days of the decision. The sheriff may reverse or modify the authority's decision, or he may return the case to the authority to reconsider, with his reasons.
How long does the application process take?
The licensing authority must make a decision within 12 months of receiving an application for a licence. This is longer than the normal period of 6 months for other types of licence, to allow physical changes to be made to the property if necessary. However, authorities are not expected to take 12 months if no physical changes are required.
Can I operate the HMO while my licence application is being considered?
Generally no. You must obtain a licence before the HMO is occupied. However, if the HMO has been in operation for some time before the landlord became aware of the need for licensing, most authorities are willing to make arrangements to avoid tenancies being terminated while your application is being considered. They will need to be reasonably confident that the required standards will be met and that the licence will be granted. If you already have tenants in your property, you should speak to the licensing authority about this immediately.
How long is an HMO licence valid? Can they be renewed?
A licence may be granted for any period up to three years. Most authorities award all licences either for one year or for three years, but some vary the duration of individual licences depending on an assessment of various factors in the application.
An application for renewal must be made before the end of the licence period, and goes through the same process as for the initial application, including the opportunity for objections to be made. Some authorities award renewals for a different period (longer or shorter) than the original licence.
Where a licence is held jointly by the owner and manager of an HMO, and there is a change of manager, the owner must make a new application within six weeks of the change.
Can changes be made during the period of the licence?
If there is a material change of circumstance affecting the HMO or your personal situation, you must inform the licensing authority as soon as possible. If you want to make any material changes to the property or management procedures, you must obtain consent from the authority in advance.
The authority can vary the terms of the licence at any time, either at their own discretion or if you ask them to do so (for example to make a change to the property). Before a variation is imposed, you must be given an opportunity to be heard by the authority, and you can appeal against any such variation.
When can a licence be suspended or revoked?
A licensing authority can suspend a licence if in their opinion:
- The licence-holder is no longer a fit and proper person to hold the licence
- The HMO is causing or is likely to cause undue public nuisance or a threat to public order or safety
- The licensing conditions have been breached.
The authority can take into account the behaviour of people in or around the HMO. The process for suspension includes a hearing and appeal process.
A licence may be revoked by the sheriff if a licence-holder is convicted of a relevant offence in relation to the licence. The relevant offences deal with breach of licensing conditions, preventing the inspection of the HMO or of relevant records, and failing to obtain permission for or inform the licensing authority of material changes. All these offences are punishable by fines, but the sheriff may also decide to revoke the licence, and may disqualify the licence-holder from holding a licence for up to 5 years.
How much does a licence cost?
Each local authority sets its own fees for HMO licensing. The authority is required to charge enough to cover the costs of all the activities involved in HMO licensing. This includes not only processing applications, gathering information, carrying out inspections and preparing reports for the Committee, but also publishing information about licensing, identifying unlicensed properties, dealing with complaints and enquiries, and enforcement work.
The licensing authority may charge different amounts for licences, depending on the number of occupants of the HMO. They may also charge different amounts for initial licences and for renewals. Discounts may be available in various circumstances.
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