
Wandsworth Selective Licensing - how quickly a £38k RRO liability appeared for an overseas landlord
We had an overseas landlord contact us today. They met us 2 months ago and were not sure if they wanted our £80 a month compliance outsource service. They actually loved what we do and saw the need. They just thought they needed to explore other options based on cost as they had a portfolio and some existing relationships. Fair enough.
The properties were in Wandsworth (phase 2) and they needed a local named representative on their licence if the landlord is based overseas. Their local agent was happy to collect rent but not share responsibility and liability. So would not be on the application.
They rang around and no one else was willing to sign up to a potential liability. So 2 months later they haven't got their licence application in still.
That indecision has put them in a position where they have a potential Rent Repayment Order liability of £38k. And their tenants have been contacted by a no win no fee firm already. Hence they called back today in a panic.
It's a really good reminder that there is a cost to procrastination and sometimes trying to save pennies can cost thousands of pounds. There is no reverse on this compliance fail - all we can do now is stop the bleeding and if the claims arise help them negotiate.
Landlords are now regulated. And that means you can't play with legislation and deadlines - and for most that means they need professional help. It's why we set up Landlord Lab and why we offer outsourced compliance - it's to protect from avoidable costs like this. The full detail is in the blog. Really a cautionary tale.
https://landlordlab.co.uk/wandsworth-selective-licence-cost-of-delay/