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On 23 November 2016, the licensing provisions in Wales commenced. There was a 12-month grace period for agents to comply, and Cardiff City Council operates and enforces the licensing under Rent Smart Wales.
Any person who performs lettings or property management work on a 'domestic tenancy' must have a licence from 23 November 2016. All licenses will need to be applied for through Rent Smart Wales and will involve some training (for which see later).
An agent will require a licence if the agent is to do any letting work. This means anything done by any person in response to instructions from:
Further, an agent will need a licence if the agent wishes to carry out property management work. This means doing any of the following things:
If an agent only publishes advertisements or disseminates information providing a means by which:
And, if the agent does no other lettings or property management work in respect of the property, then a licence is not required. This will include agents who provide an advertisement (on Rightmove, for example) and pass the prospective landlord details to the prospective tenant, who makes direct contact and the landlord carries out viewings themselves etc.
However, if such an agent wishes to offer a further service of granting a tenancy on behalf of the landlord, for example, a licence will be required if the dwelling is in Wales. Further, a licence is not necessary if the only thing a person does is anyone (but not more than one) of the following things:
Nor must the person do any letting or property management work for this exemption to apply. This allows firms that only prepare inventories, for example, not to require a licence as long as they don't do any other letting or property management work.
If a person does any one of the following things (and only one of the following) and does no lettings work whatsoever, no licence will be required:
For example, this exemption would allow an inventory clerk to check the condition of a property at the end of a tenancy without needing a licence.
An application for a licence for agents will be made to Rent Smart Wales.
The fee depends on the number of properties managed, whether the agent is a member of a relevant professional body and how the application is made (online or paper).
Please see here for current fees.
It is a condition of all licenses that training be completed by the applicant agent and their connected persons (staff or apprentices).
Training is available through Rent Smart Wales and other companies offering training that Rent Smart Wales has approved.
It is available as face-to-face training or online.
The cost of training will be payable in addition to the licence fee, depending on which provider the agent chooses.
Agents will need to complete both the landlord module and an additional agent module.
Training for Professionals provides training for agents which is fully approved by Rent Smart Wales and suitable for the licence.
Any person on a contract of service (employed by the agent) or on an apprenticeship with the agent does not need to obtain a licence. Such a person is known as a "connected person".
The agent's licence will contain conditions that all 'connected persons' must complete the training.
Staff or apprentices will require training if they do any one or more of the following:
Lettings work
Property management work
In addition to attending or completing the course, both agents and staff will need to pass a test relating to the content.
Any licence granted to either a landlord or agent will be subject to a condition that the statutory code of practice must be complied with.
The code of practice should be consulted for full details but includes:
1. Licence Details and Updates
You must keep your licence details current within 28 days of any changes, including your name, contact details, letting and management arrangements, property portfolio, connected persons, and company directors or trustees.
2. Compliance with the Code of Practice
Agents must comply with the Code of Practice for Licensed Landlords and Agents, which outlines mandatory legal requirements and best practice guidance. This Code is available on the Rent Smart Wales website.
3. Training Requirements
All connected persons undertaking letting or management work must be suitably trained within three months of starting their role. Training options include first-time licence training, relicensing training, or CPD.
4. Subcontractors
If you use subcontractors (e.g., for rent collection or property check-outs), you must ensure they meet Rent Smart Wales standards for training and compliance. Evidence of this must be provided on request.
5. Business Safeguards
You must maintain throughout your licence period:
6. Transparency of Fees and Memberships
Where required by the Consumer Rights Act 2015, you must display a list of fees payable by landlords or tenants, including statements confirming your redress scheme membership and client money protection details.
7. Portfolio Management and Reporting
You must provide up-to-date details of all landlords and rental properties you manage in Wales at least once a year and on request by Rent Smart Wales.
8. Landlord Compliance
You must ensure landlords you work with are registered and licensed as required by the Housing (Wales) Act 2014. If a landlord fails to register or is unlicensed, you must notify Rent Smart Wales within specified timeframes.
9. Management Arrangements and Property Visits
You must have robust management arrangements, including access to qualified contractors for emergencies. Routine property visits must be conducted at intervals similar to those for landlords:
10. Tenant Information
You must provide tenants with the same key documents and information as landlords, including contact details, safety certificates, deposit information, complaints procedures, tenant guides, waste collection details, and appliance manuals.
11. Delegation of Legal Responsibilities
If legal responsibilities (e.g., obtaining safety certificates or managing deposits) are delegated to landlords, you must ensure these are completed correctly and retain evidence.
12. Residency Restrictions
You or any connected person must not reside at a property you manage unless the landlord is a direct relative. Changes in this situation must be reported to Rent Smart Wales.
13. Fitness and Propriety
You must notify Rent Smart Wales within 14 days of any convictions (excluding driving offences) affecting you or connected persons during the licence period. You must cooperate with any audits or investigations.
14. Use of Rent Smart Wales Logo
You may use the approved Rent Smart Wales agent logo for marketing, following brand guidelines.
15. Licence Fee Payments
If paying your licence fee by instalments, all payments must be made on time. Missed payments must be reported within three days and paid within 14 days.
The licence holder must notify any changes within 28 days, which include changes to:
A licence may be revoked if:
A licence expires at the end of 5 years, but a licence holder may apply for renewal 84 days before the expiry date.
Where an application to renew is made, the licence does not expire until the application is decided.
A licence expires if the licence holder dies or, in the case of a body corporate, is dissolved.
An applicant may appeal certain decisions made by a licensing authority in respect of a licence, namely:
An appeal to the Residential Property Tribunal must be made within 28 days, beginning with the date the applicant was notified of the decision.
Breaching any of the several requirements under the Act is, in the main, a criminal offence and a licensing authority or local housing authority have powers of prosecution.
Further, some severe penalties and restrictions also apply for breaches.
For certain offences, Rent Smart Wales or local authority could offer a fixed penalty notice which, if paid, would prevent further proceedings in relation to the offence. A section 173 notice will not be able to be served where the agent managing the property is not licensed.
A contract will remain valid and enforceable even if any one of the several requirements under the Act are not complied with (except for rent which has been ordered to be stopped or repaid or the inability to serve a notice).
Check to see if you need an agent licence by answering questions.