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PART 5: FEES and DISCOUNTS
The Private Landlord Registration (Information and Fees) (Scotland) Regulations 2005 and Private Landlord Registration (Information and Fees) (Scotland) Amendment Regulations 2006 implement a fee structure to be used by all local authorities 14.
The key elements of the fee structure are:
- the principal fee (with fixed discounts to be applied as relevant)
- additional fees
- fixed discounts
Please note that the fees due from an applicant will be automatically calculated by the IT system. This section of the guidance outlines the principles involved, and describes the way in which the system will handle certain scenarios.
The principal fee
• Joint owners
If a property is jointly owned, a lead owner should be designated by the owners from amongst their number. If the joint owners are members of the same family, the lead owner will pay the full fee but the other joint owners will not pay a fee. Where joint owners are unrelated, all should pay the full principal fee.
The scenario may arise that a landlord, registered as non-lead owner of a property jointly owned with a member of his or her family and owning no other properties, purchases and lets a new property independently in the course of the three year period of registration. Such a landlord will need to pay the additional fee due on this new property but will already be registered and so will not be liable to pay a principal fee.
• Properties in more than one local authority area
A landlord who owns properties in more than one local authority area will be due to pay the full principal fee in the authority where most of the properties are held, and a discounted fee in the other authorities.
Where the landlord owns the same highest number of properties in more than one area, authorities will reach agreement as to which will be the lead authority. The registration IT system will allow for this to be monitored, to ensure that no authority is the 'lead authority' in a disproportionate number of cases.
Detail of the procedure as regards the IT system can be found in Annex 4 of this guidance.
• HMO licences
A landlord who holds an HMO licence will be 'passported' into registration without the need to pay the principal fee. Each property for which he or she has an HMO licence will be included in the register without the need to pay the additional fee. All non- HMO properties owned by that landlord must however be registered and the additional fee paid for each.
Where a landlord has non- HMO properties in a local authority in which he or she does not hold an HMO licence, a discounted principal fee will be payable where the application is made online. That landlord will be considered as having paid the full principal fee in the authority where either the HMO licence or the largest number of HMO properties is held.
• Accreditation
The essence of landlord registration is whether or not a landlord is fit and proper to be letting residential property. A landlord may be accredited through an accreditation scheme - for this to be relevant to registration, it must involve a 'fit and proper' test. If a landlord is accredited by an accreditation scheme which is approved by the local authority, in particular, as including a suitable 'fit and proper' test, that landlord should be pass-ported to registration, and will not need to pay the principal fee or any additional fee for the accredited properties. Where an accredited landlord also lets non-accredited properties, no principal fee will be payable but the additional fee will be due on each non-accredited property.
If a landlord is accredited in one local authority area but also holds properties in another, that landlord will require to register in the authority areas where the accreditation does not apply.
Where non-accredited properties are held in a local authority in which a landlord is not accredited, a discounted principal fee will be payable where the application is made online. That landlord will be considered as having paid the full principal fee in the local authority where either the accreditation or the largest number of accredited properties is held.
Discounts on principal fee
Some applicants will be eligible to have a discount deducted from their principal fee. These discounts are for:
- a joint owner of a property who is of the same family as the lead owner of the property - 100% discount, so, in effect, only the lead owner pays a principal fee
- a landlord who has properties in more than one local authority area - the full principal fee will be payable in the local authority where most of the properties are held; for the other local authority areas - 75% discount, therefore, only 25% of the principle fee is payable
- an applicant who is registered as an agent of only one property - 50% discount, therefore, only 50% of the principal fee is payable
- a landlord who holds a current HMO licence - 100% discount, therefore, no principal fee is payable
- a landlord who has a current accreditation through a scheme which is approved by the local authority and includes a 'fit and proper to be letting houses' test - 100% discount, therefore, no principal fee is payable
The additional fee
An additional fee will be payable for each property owned and let. The additional fee will be 20% of the local authority's principal fee 15.
Applicants should be made aware that when they apply for registration after the local authority has issued two separate requests for an application to be submitted, an additional fee of 200% of the principal fee will be added to the fee payable on the application.
The total fee payable
Some applicants will be eligible to have a discount deducted from their total fee. Discounts will apply in the following cases:
- landlords who submit their application through the internet-based system and do not need to have their application entered by the local authority - 10% discount, therefore, 90% of the total fee is payable
- landlords who are a registered charity - 80% discount, therefore, only 20% of the total fee is payable
Summary
Steps:
- principal fee - any principal fee discount = principal amount payable
- principal amount payable + additional fees = total fee
- total fee - any total fee discount = total fee payable
Renewal of registration
The approach to renewal of registrations after 3 years will be developed with local authorities in the light of experience of the initial registration. Renewal will be simplified if care is taken to ensure that, as far as possible, new property purchases and changes in circumstances are recorded.
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