Landlord Guide

Making the right move...

Welcome...The success of Petty Lettings is unmatched by anyother Letting Agency in the region. We have 4 estateagency and letting branches in the Burnley andPendle area.

Along the way, we have been nominated in the top 10best letting agents in the North West.

All our awards are testament to the extremely highstandards and the outstanding quality andcommitment of every member of the Petty Lettingsteam across the entire company.

Being a landlord in today’s environment carries with itsignificant responsibility and risk so landlords need aletting agent they can trust, who is professionallyqualified and who will look after their interest ensuringboth maximum rental return and that stress levels arekept to a minimum!

We regard constructive criticism as a positive andmany of the service innovations we have developedhave been as a direct result of client feedback.

We trust that our Landlord’s Guide will provide youwith some valuable pointers and at the same timegive you an insight as to why more and more propertyowners are entrusting the rental of their property toPetty Lettings.

Your landlords guide

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!

“

”

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

Index

We maintain the highest professional standards byconforming to guidelines of the industry’s leadinggoverning bodies.

Petty Lettings are members of the NAEA and RICS, a clear sign you are dealing with a professional andwell respected agent.

Our residential lettings service is designed withflexibility in mind – to suit each individual clientsneeds. We combine our established local presencewith years of experience providing a personal servicefor both landlords and tenants.

Meet the professionals...

Simon Westwell - Lettings manager

Our BranchesFor 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.ukmanagement@petty.co.uk

We will discuss with you the typical rent you mightexpect, based on our experience of current markettrends and comparable rentals of similar localproperties. If you are renting your propertyunfurnished try to imagine what it will look like to aprospective tenant. Clean, tidy and freshly decoratedare the keys to securing tenants.

All kitchen appliances eg. cooker, washer, dryer,dishwasher, fridge/freezer should be in good workingorder. The central heating system should have beenrecently serviced and the gas boiler and any othergas appliances safety tested.

Always put yourself in the tenants shoes! If anythingwould put you off renting this property, make sure youfix it immediately.

Buying to rent or moving away?There is little doubt that the buy to rent phenomenonhas played a significant role in the housing marketover the past five years. Today, with uncertainty in somany investment areas we still believe buying to let ina balanced portfolio can be a sound investment.

Our experienced and professional valuer can adviseon the most popular areas to buy rental propertytaking into account risk, market depth and return. Wecan also help you make the right decisions about thefinancial implications of becoming an investorlandlord.

However, once you have purchased your propertylandlords can come across problems when rentingtheir property to the wrong type of tenant or beunfamiliar with the legalities and the administrationrequired.

Whether you are considering renting for the first timeor own a large portfolio, at Petty Lettings we offer acomprehensive 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 thebenefits of your investment without the day-to-dayproblems associated with being a landlord.

What makes a great rental property?

This is one question we are often asked by newproperty investors, and the simple answer has to be aproperty that is competently maintained, clean andwell presented.

At Petty Lettings, prior to taking on the managementof your property, one of our experienced valuers willvisit the premises and ensure that the decoration andrepair is of an adequate standard. We will thenconduct a valuation review, taking into account,location, size and demand for homes of this type.

We have all heard of the problems about tenantsdisappearing overnight, homes vandalised, unpaidrent – and as a landlord it is something you have tobe aware of when you take the plunge into propertyinvestment.

At Petty Lettings, we accept that occasional disruptionis inevitable. Partners will fall out, unemployment canhappen to anyone, and illness is something thatno-one can plan for. These things are unpredictableby their nature, yet we find that by maintaining regularcontact with our tenants we are in a better position tospot a problem and act accordingly.

Once we are alerted to a potential problem, we willwork with the tenant, to try to resolve it and it’s this‘early warning system’ that prevents most situationsturning into bigger problems.

Collection of the rent regularly and on time is one ofour prime responsibilities, so everything is in place tomake it happen. Careful and professional monitoringof the tenants, from initial credit checks to regularproperty visits means we are constantly on the lookout for warning signs. Our proactive managementtechniques significantly reduce the likelihood of rentaldefaults.

All potential tenants must pass a stringent creditcheck with one of the UK’s leading providers offinancial information, in addition to employmentreferences and traceability tests, before they areaccepted. These initial security tactics ensure thatyour property is only rented to people who are likely topay the rent on time each month and look after yourproperty.

Using Petty Lettings managedservice to avoid the pitfalls...

Have you consulted our

property managers

before purchasing your

next property?

As a landlord, you want to be sure that your propertyis returning full value on your investment – and thatmeans continuous occupation at full rent.

At Petty Lettings, we use more marketing andadvertising opportunities than any other agent toensure your property is seen by every potentialtenant.

A professional service assured We maintain the highest professional standards byconforming to guidelines of the industry’s leadinggoverning bodies. We are members of the NationalAssociation of Estate Agents, (NAEA) and the RoyalInstitute of Chartered Surveyors and have staff thatare members of ARLA and RICS - a clear sign thatyou are dealing with a professional and wellrespected lettings agent.

WebsiteThese days, many people start their search for rentedaccommodation on the internet. Petty Lettings hasinvested in the latest technology to bring properties tolife. The details are available to view 24 hours a dayand attract many potential tenants locally, nationallyand internationally. Petty Lettings also display yourproperty on national websites such as RIGHTMOVE,Property Live, Property Today and GLOBRIX alongwith excellent positioning on popular search engines.

Regular AdvertisingRegular advertising in the local press and our ownmagazine ‘Your Village Life’ means our name is nowsynonymous with lettings in Burnley and Pendle,ensuring we have a constant flow of high qualitytenants seeking good quality properties.

Why is our service different ?Home Sale NetworkPetty Lettings is a member of the Home Sale Network,a national network of independent estate agentswhich is backed by Cendant Mobility plc, the worldslargest relocation company, responsible for helpingmore than 100,000 families relocate around the globeeach year.

Local knowledge and contactsAs a respected and established agent we are incontact with many of the leading relocation specialistsin the area who constantly require quality homes torent for clients moving into the Burnley and Pendleareas.

Mailing ListFinally and most significantly, due to Petty Lettingsbeing the leading agent in Burnley and Pendle, wehave a vast Register of Prospective Tenants whichexceeds the number of rental properties we haveavailable.

Property ManagerAt Petty Lettings we promise you a designatedlettings Property Manager who will deal with yourproperty throughout.

When you place your property with Petty Lettings, youcan be assured of comprehensive marketingcoverage until your property is successfully rented.

Our residential lettings service is designed withflexibility in mind – to suit each individual client’sneeds.

Q: What does the service cost?A: We charge a fixed fee for marketing and finding atenant for your property and a percentage of themonthly rental and letting fee for our managedservices.

Q: When do I receive the rent?A: We recognise that many Buy-To-Let landlordshave extended mortgages to pay for their investmentproperties, so we transfer the net rental funds toyour account once cleared funds are in our bankaccount. 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 tenantshave impeccable references too. All prospectivetenants are vetted by an independent referencingcompany, who will carry out credit references, vetemployment references, previous landlordreferences (if applicable) and a traceability test.Only those with a clean record will be considered asacceptable.

Q: What can I do if my tenant doesn’t paytheir rent?

A: Our credit control system ensures any latepayment is flagged straight away and will result inimmediate correspondence to the tenant. Inability topay on time is usually a symptom of anotherproblem so we keep in regular touch with all ourtenants to make sure everything is OK. Persistentlate payers are given verbal and written warningsand exceptionally, an application to the court wouldhave to be made to recover any loss of rent andlegal advice taken.

Alternatively – rent guarantee insurance can betaken out at the commencement of the tenancy atvery reasonable costs (please ask for furtherdetails).

Frequently asked questions...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 ourManagement Service should contact their dedicatedproperty manager who will make the necessaryarrangements.

Q: Who is responsible for maintenance and repairs?

A: It is the landlord’s responsibility to ensure thebuilding and the main supply systems such ascentral heating, plumbing, gas and electricityincluding appliances are fully working. Once thetenancy starts the tenant is responsible for anyrepairs arising from misuse or abuse within theproperty.

Q: Can I increase my tenants rent?A: Not within the first 12 months.

Q: Whose responsibility is it to keep the gardentidy?

A: Unless you advertise your property with agardener, it is the tenants’ responsibility to ensurethe garden is kept tidy. In this instance, werecommend 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 dateinventory prior to the commencement of any newtenancy. This document is then used to check forany damage when the tenant moves out. Damageto property can be deducted from the tenantsdeposit but general wear and tear cannot. Aninventory is included in all our services.

Q: Why do I need an agent like Petty Lettings?

A: Many property owners who are new to propertyinvestment believe they can handle everythingthemselves. After all, finding tenants and collectingthe rent can’t be too difficult can it? But, by the timethey have placed an advertisement and interviewedtenants, checked out the electric and gas safetyregulations and complied with the legalities of theTenancy Agreement, they begin to see the benefit inasking a professional team to look after everythingon their behalf.

Compliance and RegulationsFalls

• 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, lightingfittings 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 usuallyrequired.

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 suchfurniture 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

The responsibilities of property rental and, in particular,compliance with the rules and regulations surrounding it,are the main reasons why many investor landlords preferto appoint a lettings agent like Petty Lettings, to handleeverything on their behalf.

Each member of our lettings team has been extensivelytrained and many have lettings qualifications. Ourknowledge and expertise of the regulations, means youcan 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 theDepartment for Communities and Local Government(DCLG) requires that all homes must be healthy andsafe. This is assessed by the Housing Health andSafety Rating System (HHSRS). It applies to all housingwhether rented or owner occupied, family homes orhouses in multiple occupation (HMOs). Below is someadvice 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.

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 tothe 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

Gold Silver Bronze

No obligation rental appraisal

Advertising in local press/websites with photos, including Right Move

'To Let' board erected

Accompanied viewing service 6 days a week including evenings / weekend

Full tenant referencing and vetting

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

Monitor rental payments

Management of all maintenance issues

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

Petty CS Ltd are the areas premier Letting Agency with over 80 years experience in the residentialproperty market.

The strength of our reputation, our knowledge of the local market and the expertise of ourexperienced 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 possiblelevel 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

There’s lots of things to remember and consider whenpreparing your property for rent so we’ve put togetherthis 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 forwarddirectly to the Inland Revenue at the address as detailedon the form.

Please note: Please insert our details in Section 10 andour Reference number which is 922NA012185 in Section 1.

• Take final meter readings and inform utility providers

Useful Checklist

Other Petty letting servicesEPC’s

Removals

Storage

Buy To Let Mortgages

Survey & Valuations

Notes :