Knowledge

The Government of Jersey (the "Government") has introduced a new scheme which requires Jersey landlords to obtain a licence for each private dwelling that they rent out (the "Scheme").

A variety of health and safety obligations are already in force and applicable to residential landlords. In particular, the Public Health and Safety (Rented Dwellings – Minimum Standards and Prescribed Hazards) (Jersey) Order 2018 provides for the treatment of a number of prescribed hazards and minimum standards regarding:

• the detection of smoke and carbon monoxide;
• gas safety; and
• electrical safety.

A copy of the electrical installation report needs to be provided to the tenant within 28 days, or in the case of new tenants, at the start of their occupation.

The aim

The Scheme is not intended to enhance the existing health and safety obligations of residential landlords. Instead, the aim of the Scheme is to assist with the enforcement of existing health and safety standards and, indirectly, to improve the quality of rented accommodation in Jersey.

Which premises will require a licence?

A licence is required for all rented residential dwellings (as defined in the Public Health and Safety (Rented Dwellings) (Jersey) Law 2018) which the owner rents out.

The meaning of dwelling includes houses and individual flats. However, exceptions apply to lodging houses, tourist accommodation, nursing homes and care homes (which are subject to their own specific regulation). The scope of the Scheme includes social housing providers, who are required to procure licences for each of the properties they rent out.

The Scheme does not apply to commercial properties.

Practicalities

A licence costs £60 (per property) and is valid for a period of two years. The licence will attach to the property itself. This means that the licence will transfer to the property's new owner in the event of a sale.

From 1 May 2024, residential landlords must hold a licence in order to be able to rent out their properties. Landlords have to apply online for a licence for each dwelling they rent out or wish to rent out. Applications must be made via a portal on the Government of Jersey website. 

Renting out an unlicensed dwelling is prohibited and could result in fines of up to £10,000. Further, landlords risk being prohibited from letting out the property until a valid licence is in place. 

There are a number of standard licence conditions, which include a requirement that the landlord notifies the Minister where:

• there is a change to the landlord's contact details;
• a manager or agent's contact details change;
• the emergency contact number changes; or
• the dwelling is no longer being used as a rental property. 

Information to provide to occupiers

The landlord must provide the occupier with:

• a copy of the licence; 
• a contact address and daytime phone number to be used to communicate their concern or complaint;
• an out-of-hours telephone number to be used in an emergency;
• details of how their concerns or complaints will be dealt with;
• a statement on their rights to seek advice from, or raise a complaint with, the Government's Housing and Nuisance Team ("HNT"), together with the details of the HNT;
• a tenancy agreement (in writing); and
• a condition report (regardless of whether a deposit has been put in place). 

The above information can be provided in electronic format or in hard copy.

Additional resources

In conjunction with the Scheme's implementation, the Government has released a Landlord Tool Kit (the "Tool Kit") which contains further details regarding the obligations of landlords, as well as the rights of tenants under the Scheme. The Tool Kit includes links to the following useful resources:

• Landlord interim checklist;
• Tenants concerns and complains form;
• Residential tenancy agreement template;
• Conditions report template for tenants and landlords' template;
• Renting Dwellings Licensing code of practice; and
• Renting Dwellings Licensing guidance summary.

Timeline

The Public Health and Safety (Rented Dwellings) (Licensing) (Jersey) Regulations 2023 (which enacted the regime) (the "Regulations") came into force on 1 May 2024.

There is a grace period which allows landlords who already rent out their property (and who apply for a licence prior to 1 August 2024) to be granted their property's first licence without a pre-inspection taking place.

Impact

Whilst the health and safety obligations of landlords regarding the standard of their properties are not being enhanced, landlords will have an additional administrative burden under the Scheme. If properties do not meet the required standards, then landlords may find that licences could be denied or revoked. Consequently:

• landlords will be unable to let out their property unless a valid licence is in place;
• landlords of non-compliant residential property could find that their property must be left vacant until it is brought up to the requisite standard; and
• landlords who do not comply with the Regulations may be fined.

It is worth noting that the Minister may still issue a licence if the property does not meet the minimum standards but that this would be subject to the necessary improvements being made by a specified date.

The licensing legislation comes into force as the Government continues to consult on the introduction of Jersey Energy Performance Assessments ("JEPAs"). Although the exact requirements of the JEPA regime are currently unknown, it is envisaged that the Scheme will require that a valid JEPA is in place on the sale or letting of property. More information on JEPAs can be found in our briefing here.

The Scheme will facilitate the creation of an extensive database of rented dwellings in Jersey. That database will likely be useful in ensuring that residential landlords also comply with the JEPA regime when it is implemented.

Next steps

Landlords (or property owners who are intending to let out their property) should:

• ensure that their properties comply with the minimum health and safety standards; and
• make an application to prevent either non-compliance with the legislation or the landlord's property becoming untenantable.

Existing landlords should apply for a licence as soon as possible (and in any event before 1 August 2024) to avoid the possible delays associated with a pre-inspection.

If you would like any further information, please get in touch with your usual Bedell Cristin contact or one of the contacts listed.