Section 1 6 version

The law requires private landlords In Wales to register and either become licensed or
appoint another person/company to hold the licence on their behalf. Licensing
requirements will require licence holders to have completed approved training.
Rent Smart Wales process landlord registrations and grant licences to landlords and
agents who need to comply with the Housing (Wales) Act 2014. In addition they offer
training for people who need a licence and authorise other providers to run approved
courses which are also suitable for licensing purposes. I have been authorised to offer
such training and currently offer classroom based and online training. These training
sessions can be booked directly from my website.
There are five sections to this online training and within each section there are a
number of modules. Start with the first section and work your way through the
instructions on the screen. You can take as long as you like to complete the training.
When you have finished each module click on the recap page to consolidate what you
have learnt in that particular section. You can return to any of the slides by clicking on
the buttons on the screen or click on the home button to return to the menu. There is
an assessment at the end of the course (section 5) and based on your results you will
be able to downloadable the ‘Rent Smart Wales’ certificate.
Marie Lamb F.E. Tutor
ARLA Qualified
About Rent Smart Wales
Click Next
ICT Trainer and
Property Management
Trainer

Main Menu
 Section 1 General Overview
 Section 2 Setting up a Tenancy
 Section 3 During a Tenancy
 Section 4 Responsibilities and Liabilities
 Section 5 Ending a Tenancy
Section 1
Click on section 1 to get started……
Click Next

Section 1 – General Overview
• Part 1 of the Housing (Wales) Act 2014
• Agents Role and Services
• Common law and Statute
• Organisations
• Re-Dress Scheme
• Client money protection (CMP)
• Contracts
• Home Owner Permissions
• Mortgages • Leasehold and freehold
• Overseas landlords
• Consumer Law
• Income Tax
• Council tax
• Planning and Building regulations
• Letting agents record keeping
• Setting rent and rent period
• Alternative Dispute Resolution
Click NextClick Back
Recap on Section 1

All private landlords who have a
rental property in Wales must
register themselves and the
addresses of their rental
properties in Wales.
Landlords who undertake defined
letting or property management
activities at a rental property in
Wales must apply for a licence. If a
landlord instructs an agent to do
such work on their behalf, it is that
agent who must become licensed
Rent Smart Wales (Wales Only)
The law requires private landlords to register and either become licensed or appoint another
person/company to hold the licence on their behalf. Licensing requirements will require licence holders
to have completed approved training. This training will provide agents with relevant, up to date
information and professional development opportunities in order to successfully manage tenancies within
the law. A licence expires at the end of a period of 5 years beginning with the date it was granted.
In order to get a licence a
person must be adequately
trained, and also declare
themselves ‘fit and proper’
Who Needs to register?
Click on the picture
What about Letting Agents?
Who Needs to be Trained?
Home
Section 1

Anyone who deals with the day to day activities in managing a property in Wales is defined as a ‘Connected
Person’ and must be adequately trained
There will be a 12 month grace period for landlords who need to register, and agents and landlords looking to
be licensed. After the 12 month period it will become an offence to operate without registration or license. The
deadline is November 2016.
The new legislation and ‘Rent Smart Wales’ will replace the existing voluntary Landlord Accreditation Wales
Section 1
Rent Smart Wales Legislation
Home Click NextClick Back
Who, in this situation, is defined as a ‘Connected Person’ under the ‘Rent Smart
Wales’ legislation? Click on the picture to reveal the correct answer
a) Anyone who deals with day to day activities in managing a property in Wales
b) Anyone who does repair work to a property
a) Letting Agent
b) Repair Man

To follow
instructions
Not to take a
bribe
To keep
account of
money owed
To exercise due
care and skill
To carry out
instructions
personally
Not to allow a
conflict of
interest
Not to make a
secret profit
Home
Help and Advice for Agents
Letting Agents Services
The Role of the Agent
Click on the links in the circle
Letting Agents’ Role Responsibilities and Services
The Agents Duties
Section 1

The Agents Duties
Ensure that they promptly and properly carry out their duties under their terms and conditions of their business
Click here to return to the next link
HomeSection 1Click Back Click Next
Ensure that repairs are
carried out in a
reasonable timescale
Ensure that if requested
they pay the premium for
the renewal of the
Landlords insurance
Ensure that the gas safety
inspection is carried out
within the timescale and a
copy of the gas safety
record is given to the
tenant(s) within 28 days
Endeavour to provide tenants with
adequate facilities e.g. heating and
hot water, during the tenancy

Be realistic when giving advice
such as;
Market Value is based on;
Condition
Market
Location
Age
Improvements
Be honest with the type of
tenants the landlord can
expect.
How long the property
will take to rent.
Advice for Agents
Where can agents obtain advice; https://www.rentsmart.gov.wales
http://sheltercymru.org.uk/
https://www.citizensadvice.org.uk/wales
Section 1 Click NextClick Back
Click Here to return to the next link
Letting agents will be expected by the landlord to have full and detailed knowledge of all legal matters relating
to the lettings industry such as;
Click on each picture
Home

Letting Agents’ Management Services
Three main services usually offered by an agent;
Move the mouse over each title;
Section 1 HomeClick Back Click Next
Tenant find
only
Tenant find
and rent
collection
Full
management

The Role of the Agent
Section 1Click Back Click NextClick Home
Advising clients
Handling problems
Check tenant references
Ensuring legal
requirements
Hover the mouse over each figure to view the various roles of an agent
are adhered to

 Common law is
effectively all law that
has not been
‘Enacted by
Parliament’.
 Legislation or
statute law has
become the
dominant form of
law making
What is Common Law and Statute Law?
 Statute law means that the courts must apply the laws that have been passed.
 Common law goes back hundreds of years and is formed from local custom which has now become common law.
Basically meaning a judge would have to use these customs to assess a court hearing using his/her experience,
knowledge and judgement in the books of ancient law.
Section 1Click Back Click Next
Statute LawCommon Law
Click on each picture for a definition of the law
When dealing with landlords, tenants or contracts you will need to be aware of the law concerning
these areas.
Home

Agents are required to operate to
standards recognised by their
organisation. This basically means
that if a landlord makes a complaint
about any of the services they
receive from an agent, the scheme
will investigate the issueThe agent is part of a
‘Client Money Protection
Scheme’ and has a
customer complaints
procedure offering
independent redress
If an agent belongs to an
organisations it means the
agent has agreed to meet
defined standards of
customer service
Voluntary Organisations
Section 1 Click NextClick Back
Some agents belong to a voluntary organisation which demonstrates to the landlord/tenant they are working
professionally and within the law. The organisation they belong to will be displayed in their office
Click here for more information
Home

The local authority is the enforcement action.
There is a civil penalty of up to £5,000 for breach
of a requirement to belong to a redress scheme.
Redress Scheme
Many agents will already belong to a redress scheme but as from 1 October 2014 it is now a legal requirement
for lettings agents and property managers in England to join 1 of 3 government approved redress schemes.
Wales have their own Licensing and procedures.
 apologise
 Issue a
reprimand
 Order compensation
 Fine a member
 Expel a member
A redress scheme can require
a member to;
Home

What is Client Money Protection (CMP)
From 27 May 2015, under the requirements set out in
the ‘Consumer Rights Act’, it became compulsory for all
agents to display in their offices and on their websites
whether or not they are part of a ‘Client Money
Protection Scheme’
Clients' money means money of any currency (whether
in the form of cash, cheque, draft or electronic transfer).
Protecting clients’ money is one of the conditions of
‘Rent Smart Wales’ mandatory code of practice
Home

Agents Taking Instructions from a Landlord
When taken instructions from a landlord you will need to ensure you perform certain checks regarding their identity
and if they are the owners of the property. The list below will help you establish whether the landlord owns the
property;
Whether the property is leasehold or freehold
Is it a Buy-to-Let (BTL) this will give you an idea regarding the mortgage arrangements
Are they first time investors?
Having the above information is a good basis to establish the landlord’s authority to rent the property. Often people
with financial problems will do anything to hang onto their property, even if it means they let the property without
their mortgage lender’s permission. An agent during the course of checking the property should ensure the home
owner has permission to let the property as this could have serious consequences. It could result in the home owner
being unable to financially carry out essential repairs to the property. Furthermore, if the situation comes to light, not
only will the landlord be in serious trouble, but any tenant in the property will have fewer rights and is more likely to
face homelessness.
Section 1
Home

Permission for Home Owners to Let Their Property
Which of the following, do you think could be a consequence of not informing a mortgage provider of your intention
to let your property? Click on the picture you think is correct….
Click Back Click Next
Section 1
a) Insurance policies could be invalid
b) The landlord could be ordered to pay the loan back
c) A black mark may go against the landlords credit
rating
a) c)b)
Home

Mortgages
Home owners will need to have a buy-to-let mortgage before they can let their property
They need to inform their lender and obtain their permission. It is important that they get
permission in writing from the mortgage lender, their insurer. If they own a leasehold property
they will need to get permission from their landlord before they let their property to tenants
 Insurance policies could be invalid
 The landlord could be ordered to pay the loan back
 A black mark may go against the landlords credit rating
If you clicked on all answers on the last page you were correct – well done!
Note; For rental property in Wales, agents should check the landlord’s registration on the ‘Rent Wales register‘
to ensure the landlord is registered
Home

Leasehold/Freehold
With leasehold properties the land remains owned by the landlord who is also known as the
‘Freeholder‘
If a home is owned on a freehold basis, the ‘Freeholder’ owns the property and the land it stands
on
Click Back Section 1 Click Next
Julie wants to
rent her
maisonette.
Georgia wants
to rent her flat
Jane wants to
rent her house
Who is most likely to need
permission from their landlord to
let their property? (assuming they
all have a mortgage)
a) Julie
b) Georgia
c) Jane
Click here for the answer
Home

Overseas Landlords
Apply to the centre for non-residents (CNR) through the (HM Revenue & Customs)
Form NRL1 (Non Resident Landlord) for individual landlords, NRL2 if the landlord is an off shore
company or form NRL3 if the landlord is an off shore trust
If a landlord is out of the country for six months in any tax year he/she will need to do the following;
Note: because the number is specific to the person receiving the rent, any new person who takes
over this task must re-apply for a new approved number.
Home

Consumer Law
Click NextClick Back Section 1
The Competition and Markets Authority (CMA) issued guidance last year to help letting professionals comply
with consumer law. The guidance is aimed at anyone who is managing a rental property, whether they are an
agent, an accidental landlord or a landlord with a large property portfolio.
The CMA issued the guidance in response to the Advertising Standards Authority's ruling on the need to
disclose fees in property advertisements. Letting professionals should be aware of all the housing legislation
that sets out their legal obligations to tenants, but may be less familiar with how consumer law impacts on
how they run their business.
Click on the picture to view a guidance into different areas of the consumer law
Home

Landlords must tell HM Revenue and Customs about any profit or income they make from their property.
Click here for some things you can claim Click here for some things you can’t claim
 Reasonable management fees
including advertising for a tenant
 legal fees for lets of a year or less, or
for renewing a lease for less than 50
years
 Accountants’ fees
 Buildings and contents insurance
 Interest on property loans
 Maintenance and repairs to the
property (but not improvements)
Income Tax (Allowed)
Capital payments on a mortgage
Improvement to property
There are different tax rules for:
Residential properties
Furnished holiday lettings
Commercial properties
Note; As an agent you must remember that you are not qualified to advise landlords on their tax affairs.
You should always advise landlords to take financial advice from a specialist.
Home

Tenancy Contracts
There are two main types of tenancy agreements ‘Assured Shorthold Tenancy’ and ‘Assured Tenancy’. Both are
explained in more detail in subsequent sections.
 The main difference between an AST and an AT is; with an AST the
Landlord can claim his property back
 With an AT unless the tenant is in serious breach or the matter is
taken to court the landlord may not be able to gain his property back
A Tenancy agreement is a contract between
a landlord and a tenant specifying the terms
and conditions of a rental agreement.
Tenancy contracts are usually put in place
before letting a property.
The main difference between a tenancy and a licence
is that a tenancy usually gives you more protection
from eviction. A licence for example would be
someone (a lodger) living in the landlords house
which is the landlords main residence and the lodger
does not have exclusive right to any part of the
property.
Home

Council Tax
You’ll usually have to pay Council Tax if you’re 18 or over and own or rent a home.
You’ll need to know 3 things:
• the valuation band for your home in England and Wales or in Scotland
• how much your local council charges for that band
• whether you can get a discount or exemption from the full bill
• There are also certain exceptions when a property is not occupied
Who is responsible for council tax in the following properties?
 Houses in multiple occupation HMO (Generally the landlord will be responsible for paying council tax)
 Joint tenancies (Generally tenants will be responsible for paying council tax)
Section 1
Home

Planning and Building Regulations
No one is allowed to start development of land or property without permission from the local planning
authority. Anyone carrying out development must make a planning application. In addition where building is
to take place an application for approval under the building regulation is also required.
Some building work may not require planning permission;
 A small extension i.e. a porch
 A garage
 Conversion of a space or cellar space to living accommodation
 A small conservatory
Section 1
Click on the picture for more information
Home

6 years
Landlord Record Keeping
The Property Ombudsman (TPO) has issued a
warning to letting agents that they must keep clear
and full written records of all transactions within
their business including conversations, emails and
phone messages for a period of six years.
Section 1
The legal advisor at TPO says; ‘If a complainant
makes a claim and has a record which appears to
substantiate that claim but the agent is unable to
provide any concurrent evidence to counter the
allegation, the result is that I can only find in the
complainant’s favour’.
Agents should take their responsibilities very seriously, and protect their landlords from illegitimate claims by
keeping written records of maintenance problems reported, repairs completed, and all contacts with tenants.
This is in addition to full records of rents received, payments made and tenancies terminated
How long should records
be kept for?
Home

The amount of rent and the date the rent is paid will be set out in the
tenancy agreement. However, sometimes the tenant may want to
change the date the rent is paid. This could be due to them changing
their job and their salary is now being paid on a different date. You can
handle this in one of two ways;
Setting Rent and Rent Period
Click NextClick Back Section 1
Give the tenant a new tenancy agreement
or amend the existing one to incorporate
the new date and ask the tenant for the
extra payments to make up the days
Continue with the tenancy but agree that the rent can
be paid say perhaps a week later. There is no law
which says that rent has to be paid a month in advance.
The default position is that rent is due in arrears
1 2
Home

1. Who is a ‘Connected Person’?
Someone who deals with letting and management tasks
Someone you employ to take care of repairs
All landlords
All the above
2. What is a Safe Agent?
An organisation that protects clients’ money
Redress organisation
Alternative dispute organisation
Deposit protection scheme
3. What could happen if a Landlord failed to gain permission from
the mortgage lender?
Insurance policies could be invalid
The landlord could be ordered to pay the loan back
A black mark may go against the landlords credit rating
All of the above
Click on the letter on the left of the question to reveal the answer
4. Which building work may not require planning permission?
Conversion of a space or cellar space to living accommodation
A Kitchen Extension
A bedroom
A living room
5. What is CMP?
Client Membership Procedure
Client Money Protection
Client Money Procedure
Client Mandatory Protection
6. How long must an agent keep the landlords records on file?
4 years
6 years
2 years
1 year
b)
a)
c)
d)
a)
b)
c)
d)
a)
c)
d)
b)
a)
c)
d)
b)
a)
c)
b)
d)
a)
b)
c)
d)
Click Here

Both Julie and Georgia would most probably have a lease and would need to look closely at the terms and
conditions in the lease before letting their property. A lease is a legal document outlining the terms under
which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use
of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a
specified number of months or years. Both the lessee and the lessor must uphold the terms of the
contract for the lease to remain valid.
Flats are most commonly owned on a leasehold basis, while houses are normally sold as freehold
properties. If you buy a leasehold property you'll be known as the 'leaseholder'. This means you own the
property but not the land it stands on. Buying a freehold property means that you're the sole owner of
both the building and the land it stands on.
With leasehold properties the land remains owned by the landlord, who is also known as the 'freeholder'.
Ownership of the property will revert back to them once the lease runs out. Leaseholders have to get
permission from the freeholder to make certain alterations to the property and will often have to pay an
annual fee to a managing agent. A management agent (in this case) is someone who looks after the
building or block for properties.
Click Back
Leasehold/Freehold
Click Next
Return to the previous page
Home

Advertising and provide information
to tenants. When advertising a
property to rent, agents should be
able to answer all reasonable
questions asked by potential
tenants.
Ensure adverts are clear, accurate
and not misleading. Ensure
adverts include sufficient
information about fees, costs and
charges
Clearly explain what principal
features/fittings are included, rather
than simply describing the property
as fully furnished, unfurnished or
partly furnished.
Check that the landlord
has Gas Safety Certificates
for all relevant appliances
Negotiating, conducting
viewings and arranging
and signing the tenancy
agreement
Ensure that any information
that can’t be included in the
advert, due to space
restrictions, is easily available
elsewhere
Consumer Law
Click Back
Agents fees should not be
transparent. Fees and
associated costs should be
displayed on any marketing
material and on the agents
website
Click Next
Click here to return to the previous page
Home

Building Regulations apply to building work in England & Wales and set standards for the design and construction
of buildings to ensure the health and safety of people in and around those buildings. They also include
requirements to ensure that fuel and power are conserved and facilities are provided for people, including those
with disabilities, to access and move around inside buildings. Scotland has its own set of Building Regulations.
With all building work, the owner of the property (or land) in question is ultimately responsible for complying with
the relevant planning rules and building regulations. As an agent you should be able to assess the building and
ensure that it is safe for tenant(s). If an agent is taking instructions to let a property they will have to know from
the landlord that planning permission and building regulation approval have been obtained where appropriate. If
the agent is in doubt regarding a property improvement or conversion they can contact the building regulators
who are enforced by local authority building control officers. They can be consulted for further information about
compliance with these regulations.
Building Regulations
Home

Dealing with Complaints
The particular rules applied which agents must comply with vary from scheme to scheme. Generally speaking
you will have to read the terms and conditions of the particular scheme.
Click Back
The first step in dealing with a problem is
communication and negotiation. Talk to the
person causing the problem. You should explain
how their behaviour is affecting other people. Try
to reach a compromise. Do this as early as
possible before the problem gets too serious.
Do not put yourself in a situation where you feel unsafe: If you
ever feel like your safety is in jeopardy, you need to remove
yourself from the situation. Hopefully, it never gets to this
point, but if it does, you need to move away from the situation
and consult the proper authorities if necessary. There is no
sense in putting your life or your career in peril due to a
tenant conflict.
Tenants, including prospective tenants can complain to a redress scheme. Agents in England have to, by law,
belong to one of 3 schemes. Wales now have their own landlord/agent licences procedures. Most landlords (not
just smaller consumer) can now also access the three schemes if they wish to complain about lettings and
managing agents that are members of any of these redress schemes.
Home

Alternative dispute resolution (ADR) refers to ways of resolving disputes between consumers and traders that don’t
involve going to court. The government wants to encourage the development of ADR. Better ADR and easier access
to it should also be good for all businesses committed to giving their customers the best possible service.
Common forms of ADR are:
Mediation Arbitration
In the UK, there are already several large and well-established ADR schemes in regulated sectors
Landlords/Tenants
Redress schemes such as the PRS, The Property Ombudsman, and the Ombudsman Service (as previously discussed)
all offer ADR for landlords and tenants as does the Deposit Protection Scheme (DPS) (discussed in a later section )
Alternative Dispute Resolution
Click Back
Mediation, where an independent third
party helps the disputing parties to
come to a mutually acceptable outcome
Arbitration, where an independent third
party considers the facts and takes a
decision that’s often binding on one or
both parties
Click NextHome

Congratulations you have completed section 1!
Click on the ‘Home Tab’
Home

Section 1 6 version

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (17)

Similar to Section 1 6 version

Similar to Section 1 6 version (20)

Recently uploaded

Recently uploaded (20)

Section 1 6 version