Selective Licencing for landlords

What landlords need to know about selective licensing when engaging a property management company.

Before continuing, please note that this article was written in July 2025 – there’s a lot of change going through parliament at the moment with the Renters Rights Bill, so things might change. 

Selective Licensing is an important legal requirement in many parts of the UK, designed to raise standards in the private rented sector. If your property falls within a selective licensing area and is managed by a property management company, whether it’s Urpad or someone else, both you and your agent have specific responsibilities. Here’s what you need to know:

Landlord responsibilities

Even if you use a property management company, as the landlord, you retain key legal duties:

• Apply and pay for the Licence. The primary responsibility for obtaining the licence and paying any associated fees lies with the landlord. You must ensure an application is made for each property requiring a licence.

• Compliance with licence conditions. You are legally responsible for ensuring your property complies with all licence conditions, including:

• Annual gas safety certificates (if gas is supplied)

• Safe electrical appliances and furniture

• Working smoke alarms

• Providing tenants with a written tenancy agreement

• Collecting references from prospective tenants

• Fit and Proper Person Test. You (or your appointed agent) must pass a “fit and proper person” test, which checks for relevant criminal convictions and your ability to manage property responsibly.

Ongoing Oversight: Even with a management company, you remain ultimately accountable for the property’s compliance and can face penalties for breaches.

What to expect from your property management company?

A reputable property management company will provide vital support, but you should clarify the following:

• Assistance with the Licence Application. Many management companies will prepare and apply on your behalf, but you must confirm this service is included in your agreement.

• Day-to-Day Compliance. The agent should:

• Arrange annual gas and electrical safety checks

• Ensure smoke alarms are installed and tested

• Manage repairs and maintenance to meet licensing standards

• Collect and verify tenant references

• Provide tenants with the correct documentation

• Record keeping. The management company should maintain records of safety checks, maintenance, and tenancy agreements, which may be required by the local authority.

• Communication with the council. Agents often act as the main point of contact with the local authority for inspections and compliance queries.

• Responsibility for breaches. Both you and your agent can be held liable if the property is not correctly licensed or fails to meet licensing conditions. The law recognises both the landlord and the “person managing” the property, so agents cannot contract out of their legal duties.

Key points for landlords

• Check your agreement.  Ensure your contract with the management company clearly states who is responsible for licence applications, compliance, and ongoing management.

• Stay Informed. Even with a management company, you must monitor that your agent is fulfilling their obligations.
  

• Non-Transferable Licence. If you change management companies or sell the property, the licence does not transfer. A new application is required.

Who Does What?

Final Tips

• Clarify roles in writing with your agent.

• Agree on regular updates on compliance from your management company.

• Check your property’s local council website for area-specific requirements, as details can vary.

By understanding your responsibilities and working closely with your property management company, you can ensure full compliance with Selective Licensing and avoid costly penalties.  For further information, or to discuss working with Urpad, please contact us here