Landlord Guide
Making the right move...
Your landlords guide Welcome... The success of Petty Lettings is unmatched by any other Letting Agency in the region. We have 4 estate agency and letting branches in the Burnley and Pendle area. Along the way, we have been nominated in the top 10 best letting agents in the North West. All our awards are testament to the extremely high standards and the outstanding quality and commitment of every member of the Petty Lettings team across the entire company. Being a landlord in today’s environment carries with it significant responsibility and risk so landlords need a letting agent they can trust, who is professionally qualified and who will look after their interest ensuring both maximum rental return and that stress levels are kept to a minimum! We regard constructive criticism as a positive and many of the service innovations we have developed have been as a direct result of client feedback. We trust that our Landlord’s Guide will provide you with some valuable pointers and at the same time give you an insight as to why more and more property owners are entrusting the rental of their property to Petty Lettings.
“ I just have to say how impressed I have been with the level of service I received from Petty Lettings - I shall certainly be using them again!
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Index Petty Lettings are delighted to present you with Your Landlord’s Guide. It contains everything you need to know about letting your property with Petty Lettings. Meet the Professionals Our Branches Buying to Rent or Moving Away? Using Petty Lettings Managed Service to Avoid the Pitfalls Why is our Service Different? Frequently Asked Questions Compliance & Regulations Lettings and Property Management Useful Checklist Other Petty Letting Services Notes
Meet the professionals... We maintain the highest professional standards by conforming to guidelines of the industry’s leading governing bodies. Petty Lettings are members of the NAEA and RICS, a clear sign you are dealing with a professional and well respected agent. Our residential lettings service is designed with flexibility in mind – to suit each individual clients needs. We combine our established local presence with years of experience providing a personal service for both landlords and tenants.
Simon Westwell - Lettings manager
Our Branches For more information please call us on: Burnley
01282 417775
Colne
01282 868686
Barrowford
01282 615900
Nelson
01282 616314
Management
01282 417770
Or email:
lettings@petty.co.uk management@petty.co.uk
Buying to rent or moving away? There is little doubt that the buy to rent phenomenon has played a significant role in the housing market over the past five years. Today, with uncertainty in so many investment areas we still believe buying to let in a balanced portfolio can be a sound investment. Our experienced and professional valuer can advise on the most popular areas to buy rental property taking into account risk, market depth and return. We can also help you make the right decisions about the financial implications of becoming an investor landlord. However, once you have purchased your property landlords can come across problems when renting their property to the wrong type of tenant or be unfamiliar with the legalities and the administration required. Whether you are considering renting for the first time or own a large portfolio, at Petty Lettings we offer a comprehensive service tailored to your needs. We can take over the responsibility of finding tenants, credit reference checks, repairs, rent collection, advertising and legalities – so you can enjoy the benefits of your investment without the day-to-day problems associated with being a landlord.
What makes a great rental property? This is one question we are often asked by new property investors, and the simple answer has to be a property that is competently maintained, clean and well presented. At Petty Lettings, prior to taking on the management of your property, one of our experienced valuers will visit the premises and ensure that the decoration and repair is of an adequate standard. We will then conduct a valuation review, taking into account, location, size and demand for homes of this type.
We will discuss with you the typical rent you might expect, based on our experience of current market trends and comparable rentals of similar local properties. If you are renting your property unfurnished try to imagine what it will look like to a prospective tenant. Clean, tidy and freshly decorated are the keys to securing tenants. All kitchen appliances eg. cooker, washer, dryer, dishwasher, fridge/freezer should be in good working order. The central heating system should have been recently serviced and the gas boiler and any other gas appliances safety tested. Always put yourself in the tenants shoes! If anything would put you off renting this property, make sure you fix it immediately.
Using Petty Lettings managed service to avoid the pitfalls... We have all heard of the problems about tenants disappearing overnight, homes vandalised, unpaid rent – and as a landlord it is something you have to be aware of when you take the plunge into property investment. At Petty Lettings, we accept that occasional disruption is inevitable. Partners will fall out, unemployment can happen to anyone, and illness is something that no-one can plan for. These things are unpredictable by their nature, yet we find that by maintaining regular contact with our tenants we are in a better position to spot a problem and act accordingly. Once we are alerted to a potential problem, we will work with the tenant, to try to resolve it and it’s this ‘early warning system’ that prevents most situations turning into bigger problems. Collection of the rent regularly and on time is one of our prime responsibilities, so everything is in place to make it happen. Careful and professional monitoring of the tenants, from initial credit checks to regular property visits means we are constantly on the look out for warning signs. Our proactive management techniques significantly reduce the likelihood of rental defaults. All potential tenants must pass a stringent credit check with one of the UK’s leading providers of financial information, in addition to employment references and traceability tests, before they are accepted. These initial security tactics ensure that your property is only rented to people who are likely to pay the rent on time each month and look after your property.
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Why is our service different ? As a landlord, you want to be sure that your property is returning full value on your investment – and that means continuous occupation at full rent. At Petty Lettings, we use more marketing and advertising opportunities than any other agent to ensure your property is seen by every potential tenant. A professional service assured We maintain the highest professional standards by conforming to guidelines of the industry’s leading governing bodies. We are members of the National Association of Estate Agents, (NAEA) and the Royal Institute of Chartered Surveyors and have staff that are members of ARLA and RICS - a clear sign that you are dealing with a professional and well respected lettings agent. Website These days, many people start their search for rented accommodation on the internet. Petty Lettings has invested in the latest technology to bring properties to life. The details are available to view 24 hours a day and attract many potential tenants locally, nationally and internationally. Petty Lettings also display your property on national websites such as RIGHTMOVE, Property Live, Property Today and GLOBRIX along with excellent positioning on popular search engines. Regular Advertising Regular advertising in the local press and our own magazine ‘Your Village Life’ means our name is now synonymous with lettings in Burnley and Pendle, ensuring we have a constant flow of high quality tenants seeking good quality properties.
Home Sale Network Petty Lettings is a member of the Home Sale Network, a national network of independent estate agents which is backed by Cendant Mobility plc, the worlds largest relocation company, responsible for helping more than 100,000 families relocate around the globe each year. Local knowledge and contacts As a respected and established agent we are in contact with many of the leading relocation specialists in the area who constantly require quality homes to rent for clients moving into the Burnley and Pendle areas. Mailing List Finally and most significantly, due to Petty Lettings being the leading agent in Burnley and Pendle, we have a vast Register of Prospective Tenants which exceeds the number of rental properties we have available. Property Manager At Petty Lettings we promise you a designated lettings Property Manager who will deal with your property throughout. When you place your property with Petty Lettings, you can be assured of comprehensive marketing coverage until your property is successfully rented. Our residential lettings service is designed with flexibility in mind – to suit each individual client’s needs.
Frequently asked questions... Q: What does the service cost? A: We charge a fixed fee for marketing and finding a tenant for your property and a percentage of the monthly rental and letting fee for our managed services. Q: When do I receive the rent? A: We recognise that many Buy-To-Let landlords have extended mortgages to pay for their investment properties, so we transfer the net rental funds to your account once cleared funds are in our bank account. This should take between 3 and 10 days. Q: How can I be sure my tenant is suitable? A: It is in our best interests to ensure the tenants have impeccable references too. All prospective tenants are vetted by an independent referencing company, who will carry out credit references, vet employment references, previous landlord references (if applicable) and a traceability test. Only those with a clean record will be considered as acceptable.
Q: What can I do if my tenant doe sn’t pay thei r rent? A: Our credit control system ensures any late payment is flagged straight away and will result in immediate correspondence to the tenant. Inability to pay on time is usually a symptom of another problem so we keep in regular touch with all our tenants to make sure everything is OK. Persistent late payers are given verbal and written warnings and exceptionally, an application to the court would have to be made to recover any loss of rent and legal advice taken. Alternatively – rent guarantee insurance can be taken out at the commencement of the tenancy at very reasonable costs (please ask for further details).
Q: Can I inspect the property at any time? A: The tenancy agreement requires you to give ‘reasonable notice’, usually at least 24 hours notice (except in an emergency.) Landlord’s using our Management Service should contact their dedicated property manager who will make the necessary arrangements. Q: Who is responsible for maintenance and repairs? A: It is the landlord’s responsibility to ensure the building and the main supply systems such as central heating, plumbing, gas and electricity including appliances are fully working. Once the tenancy starts the tenant is responsible for any repairs arising from misuse or abuse within the property.
Q: Can I increase my tenants rent? A: Not within the first 12 months. Q: Whose responsibility is it to keep the garden tidy? A: Unless you advertise your property with a gardener, it is the tenants’ responsibility to ensure the garden is kept tidy. In this instance, we recommend basic gardening equipment is provided. Q: Do I need an inventory, even if my property is unfurnished? A: All properties require a detailed up to date inventory prior to the commencement of any new tenancy. This document is then used to check for any damage when the tenant moves out. Damage to property can be deducted from the tenants deposit but general wear and tear cannot. An inventory is included in all our services. Q: Why do I need an agent like Petty Lettings? A: Many property owners who are new to property investment believe they can handle everything themselves. After all, finding tenants and collecting the rent can’t be too difficult can it? But, by the time they have placed an advertisement and interviewed tenants, checked out the electric and gas safety regulations and complied with the legalities of the Tenancy Agreement, they begin to see the benefit in asking a professional team to look after everything on their behalf.
Compliance and Regulations The responsibilities of property rental and, in particular, compliance with the rules and regulations surrounding it, are the main reasons why many investor landlords prefer to appoint a lettings agent like Petty Lettings, to handle everything on their behalf. Each member of our lettings team has been extensively trained and many have lettings qualifications. Our knowledge and expertise of the regulations, means you can relax while we get everything done. • • • • • •
Rentals & Management Agency Agreement Electrical and gas safety tests Tenant’s Guide and Obligations Assured Shorthold tenancy agreement Tenancy Deposit Scheme (TDS) Energy Performance Certificate (EPC) Compliance & Regulations
The Housing Act 2004 and guidance issued by the Department for Communities and Local Government (DCLG) requires that all homes must be healthy and safe. This is assessed by the Housing Health and Safety Rating System (HHSRS). It applies to all housing whether rented or owner occupied, family homes or houses in multiple occupation (HMOs). Below is some advice you will find beneficial. Fire Hazards • Heating should be adequate and safely positioned to minimise the use of portable heaters. Cookers should be properly sited. The electrical wiring should be safe. • Other factors affecting the severity of injuries incurred must be considered, including space and surfaces at the foot of the stairs. Damp & Mould • The structure and finishes of a dwelling should be maintained free from rising and penetrating dampness or persistent condensation. The presence of mould is serious because of its significant health effects. • There should be sufficient and appropriate means of ventilation to deal with moisture generated by normal domestic activities together with adequate heating and insulation.
Falls • Internal and external stairs must be safe. Risers and treads must be even and of an appropriate size. There must be adequate guarding, handrails and lighting. Stair coverings must be in good condition (not loose, worn or ripped). Width of staircases and winders will also be considered. • Tripping hazards must be minimised. Examples include threshold steps, uneven or slippery floors and external surfaces. • Window sill heights and window types must reduce the risk of falls. • There must be adequate guarding to internal and external drops for example flat roof, light-wells, landings, garden patio/decking areas. • Bathrooms must have adequate space, lighting fittings must be secure and positioned to reduce the likelihood of an accident and the extent of any injury. Electrical Hazards • Electrical installations must be safe. Live parts must be insulated, adequate earthing provided etc. • There should be adequate sockets to prevent overloading. • A Residual Current Device (RCD) protection is usually required. Safety Regulations Furnishings (Fire) (Safety) Regulations 1988 • All furniture and furnishings supplied by the landlord must comply with these fire safety requirements. This applies to both new and second hand furniture. • The regulations cover upholstered seating (including chairs, settees and sofa beds and headboards), children’s furniture, mattresses and padded bed bases, scatter cushions and pillows. All such furniture must be labelled. Electrical Installations • A landlord has a duty of care to ensure that the electrical installation is safe and in good working order. It is recommended that a qualified electrician (NICEIC registered preferably) checks the electrical
wiring on a regular basis. In single family homes there is no prescriptive time scale for inspections, however, in HMOs inspections should be carried out at least every 5 years. Your contractor should recommend a re-inspection interval as part of his report. The safety certificate will remain valid until that date unless alterations occur or damage arises. The Defective Premises Act 1972 • This imposes obligations on a landlord to take positive steps to inspect their properties and check for reasonably foreseeable defects. The landlord can be liable for personal injury and damage caused by disrepair even though he/she did notice it or know of it. The Gas Safety (Installation and Use) Regulations 1998 • Defective gas appliances and installations are responsible for about 30 deaths and 300 non fatal incidents every year. These regulations require that all gas flues, fittings and appliances are maintained in a safe condition. A safety check must be carried out at least every 12 months by a Gas Safe registered contractor. • A copy of the valid test certificate must be issued to the tenant prior to them moving. • The Health and Safety Executive (HSE) have a help line for advice and their own literature. The HSE Gas Safety Advice Line number is 0800 300 363. Electrical Equipment • Where this is provided, a landlord has a duty to ensure that all electrical equipment is safe and in proper working order. To fulfil this duty it is advisable that a suitably qualified contractor tests all such appliances and equipment to ensure that they comply with the Electrical Equipment (Safety) Regulations 1994. • Appliances should be checked before the start of each new let and at regular intervals. You should retain test reports. Each appliance should be marked with an identifying sticker, signed and dated by the qualified contractor who carried out the tests. NB: In HMOs, the Council may ask to see these reports.
The Environmental Protection Act 1990 • This legislation can be used by tenants and/or the council to obtain improvements to housing which is “prejudicial to health” Disclaimer The information and advice given above is accurate to the best of our knowledge. However, you are advised not to rely exclusively on what we say here as legislation or government advice may have changed since this document went to press. If you have a particular problem, you should take advice from a qualified expert in the relevant area.
Energy Performance Certificate (EPC) Before letting a dwelling the landlord must: • Commission and obtain an EPC from a registered assessor • Make a copy of the EPC available to any prospective tenant free of charge • Give the tenant a copy of the EPC before he/she signs the tenancy agreement (again free of charge). (This applies even if they have already seen it) • Prospective tenant/tenants must be shown/given a complete copy of the EPC including the recommendation report
Who is responsible for an EPC? The legal responsibility rests with the landlord but the landlord can arrange with the letting/managing agent to carry out these responsibilities. However, responsibility for compliance would still remain with the landlord.
Lettings & Property Management
Petty CS Ltd are the areas premier Letting Agency with over 80 years experience in the residential property market.
The strength of our reputation, our knowledge of the local market and the expertise of our experienced and qualified staff, make us the ideal choice of Management Company for all landlords. We provide a comprehensive range of Lettings and Management services to cater for every possible level of need - from a tenant find only service to a fully integrated property management package, including rent guarantee insurance. • Competitive packages • Efficient service • Experienced, qualified staff No obligation rental appraisal
Advertising in local press/websites with photos, including Right Move
Gold
Silver
'To Let' board erected
Full tenant referencing and vetting
Accompanied viewing service 6 days a week including evenings / weekend
Inventory and schedule of condition carried out including photos
Preparation of Tenancy Agreement
Collection of first months rent and full deposit in advance
Advise all utility companies and local authority of change of liability
Register the deposit with the Tenancy Deposit Scheme (TDS)
Set up standing order for further rent collections
Payment into your account by BACS or cheque
Monthly statement of income and expenditure
Regular property inspections with written reports
Management of all maintenance issues
Monitor rental payments
Final inspection upon vacation and return of deposit Issue notice to tenants if and when required
Rent guarantee insurance for non-payment of rent with no excess All legal expenses paid in the event of eviction proceedings
Bronze
Useful Checklist There’s lots of things to remember and consider when preparing your property for rent so we’ve put together this checklist of items to help you with the process.
• Agency Terms and Conditions signed by all owners of the property • Property Information form fully completed • Gas and/or electric • Safety certificates provided by Landlord/arranging own • Two full sets of keys • Copy of the Head Lease (if applicable)
Other things you should do are: • Inform Mortgage lender and supply consent to let • Inform Insurance provider • If Leasehold inform the management company • Inform Inland Revenue if an Overseas Landlord A form is enclosed, please complete and forward directly to the Inland Revenue at the address as detailed on the form. Please note: Please insert our details in Section 10 and our Reference number which is 922NA012185 in Section 1. • Take final meter readings and inform utility providers
Other Petty letting services EPC’s Removals Storage Buy To Let Mortgages Survey & Valuations
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