The Selective Licensing Scheme for the Gainsborough South West Ward will require every property in the private rented sector to be licensed and comply with conditions set by the council.
A licence covering the five year period of the scheme will cost £375 per property.
Every landlord in the area must apply for a licence as soon as the scheme commences.
Failure to do so will be a criminal offence and will result in prosecution with fines of up to £20,000. Once issued, failure to comply with the conditions of the licence can also lead to a fine of up to £5,000.
Councillor for the South West Ward, Trevor Young, has been campaigning for this since 2004.
He said: “It is exciting in terms of what it will deliver and it certainly will deliver.
“In other areas where it has been introduced it has been seen to make significant improvements around anti social behavior issues and issues around housing management from private landlords.”
Chairman of the Prosperous Communities Committee at West Lindsey District Council, Councillor Sheila Bibb, said: “The council is committed to reducing levels of anti-social behaviour and improving housing standards in this area of Gainsborough. This is just one of a number of schemes we are putting in place to ensure that this happens.
“It is our clear intention to ensure that landlords who are not meeting the required standards are identified.”