Understanding UK Property Licensing with SleekTech


Important Note: SleekTech is a software tool designed to assist agents and property owners with managing tenancies and compliance. However, the ultimate responsibility for ensuring compliance with all relevant licensing regulations lies with the agent or property owner.


This knowledge base article explains the different property licensing requirements in the UK and how SleekTech can help you stay informed.


Understanding the Different Licenses:


There are three main types of property licenses in the UK:


HMO (Houses in Multiple Occupation) Mandatory License:

  • Required across England for properties with 5 or more people from 2 or more households sharing amenities.


Additional License:

  • Needed in some cases for properties with 3 or 4 people from 2 or more households sharing amenities.
  • Important Note: Additional licensing is dependent on the specific council and potentially even the ward within the council.
  • If your property requires an HMO license, you don't need an Additional License.


Selective License:

  • Implemented by certain councils and wards, requiring a license for all rented properties.
  • Important Note: If your property already requires an HMO or Additional License, you don't need a Selective License.
  • Selective licensing depends on the specific council and potentially even the ward within the council.



How SleekTech Determines Your Licensing Needs:


SleekTech automates the process of figuring out which licenses your properties require:


Counting Tenants and Households:

SleekTech considers all tenants and households listed in active leases for each property (SleekTech only considers tenants, not additional contacts like guarantors).


HMO Identification:

If you have an HMO property, mark Shared Facilities as true on the building page.

SleekTech will then analyse all active leases in all units within that building.


Household Count per Lease:

On each lease page, you can set the number of households included in that lease. By default, it's 1, but be sure to adjust this if there are more than one household.


Checking property council and ward:

On every property you can set the council and if necessary the ward its located in. This will help SleekTech determine whether it requires an Additional or Selective license.




Setting Up SleekTech for Licensing Compliance:


To ensure SleekTech accurately identifies licensing requirements, follow these steps:


  • Define Council and Ward Rules: Establish rules for Additional and Selective Licenses for each council and ward you manage. You can find more information on setting these rules by following this link Manage Councils and Wards.
  • Assign Councils and Wards to Properties: Ensure each property has its corresponding council assigned. If applicable, set the ward as well. Refer to the link above for detailed instructions.
  • Marking HMO Properties: For HMO buildings, make sure Shared Facilities is marked as true on the building page. See here for more details: Shared facilities
  • Maintaining Accurate Household Counts: Verify that each lease has the correct number of households, especially if you create tenancy agreements for multiple households. Maintaining Accurate Household Counts



Automatic License Updates:


SleekTech automatically updates your licensing requirements whenever you:


  • Create a new tenancy agreement
  • Add a tenant or adjust the number of households in an existing tenancy
  • Change the council or ward associated with a property


SleekTech will display a pop-up message notifying you that a new license requirement has been identified for the property.



Checking Licensing Requirements:


You can easily verify the required licenses for any property by clicking Check Licensing on its respective property page.



Missing License Alerts:


SleekTech displays all outstanding licensing requirements on your dashboard. This ensures you stay informed and compliant.


By following these guidelines and utilizing SleekTech's automation features, you can manage your property licensing requirements efficiently and confidently. However, remember that SleekTech is a tool to assist you, and the overall responsibility for legal compliance remains with you.