Q: WHILST in Cardiff at the millennium stadium enjoying the rugby I was chattering to a Welsh guy sat next to me who turned out to also be a Landlord like myself who manages his own property and informed me that I needed to register as a Landlord and undertake training under new legislation issued last year, otherwise I would be liable to prosecution.

Is this correct as I am somewhat worried?

A: The guy is totally correct, however there is a condition which needs to be met for this to apply.

A new licensing scheme was introduced on November 23, 2015.

This is called ‘Rent Smart Wales’ and by the title refers to legislation that only applies to properties let in Wales.

It is licensed through Cardiff Council, though apples to the whole of Wales.

The council under the Housing (Wales) Act 2014 will grant a licence to both Landlords and Letting Agents that manage rental properties.

Each needs to apply for a licence, and failure to do so will result in prosecution.

The first steps is for all Landlords to be registered before November 23, 2016, for any property owned in Wales which is let on an assured, assured shorthold or regulated tenancy.

Upon payment of a single online fee £33, the registration lasts for five years, irrespective of the number of Welsh properties let.

The application lists all properties owned and needs to be amended as and when there are additions or reductions from ones portfolio.

This you have to do this personally yourself, regardless of whether you use an agent or not.

If you self- manage your property, you will also need to apply for a licence.

If you however use an agent or friend who totally manages your property, then they will need to apply for an agent licence.

Your cost for a licence is £144.

To be licensed, you need to undertake Landlord training and complete a ‘fit and proper person’ declaration.

The licence also lasts for five years and contains conditions that need to be adhered to including the Code of Practise.

Incidentally an agent’s licence is £3728.00, which means if you use for example a family member who has no legal ownership of the rented property, then it probably will not be cost effective to retain their services, even though they maybe local due to the high licence fee involved.

I can see most landlords under these circumstances transferring the management to a professional local based letting agent.

There is also a fee for the compulsory training, either undertaken on a day’s course in Wales or through a training provider.

The rationale behind this is to ensure that all landlords are accounted for in respect of any tax liabilities and that self-manage Landlords are all trained to a standard level.

These rules do not apply to England where I often say to Landlords at my valuations ‘you too can be a letting agents, just like me as there is currently no minimum entry levels required’.

However, one would hope that Landlords seeking a letting agent do seek those with lettings qualifications.

It will be interesting to see how the Welsh scheme spans out over time as no doubt the English legislative board will have a close eye on the scheme and who knows English Landlords maybe next on the list.

So assuming your property is not in Wales, you will not be liable for prosecution.

However it is always advisable to ensure that you either keep up to date with lettings legislation as it is becoming more complex, book some training or alternatively, instruct a fully qualified letting agent, like myself.

Please continue to send your lettings questions to Steven Sawyer at steven@sawyersestateagents.co.uk. Tele 01453 751647