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A Landlord’s Guide to Changing the Locks on a Rental Property in Peterborough

A Landlord’s Guide to Changing the Locks on a Rental Property in Peterborough

As a landlord, ensuring the safety and security of your rental property in Peterborough is paramount. Changing the locks on a rental property can be a crucial step in maintaining this security, especially between tenancies. This guide will walk you through why, when, and how to change the locks on your rental property. We will provide practical tips and highlight legal considerations.

Why Change the Locks?

Security Enhancements: The most obvious reason for changing the locks on a rental property is to enhance the security of the rental property. This ensures that only the current tenant and authorized people have access.

After a Tenant Moves Out: Once a tenant moves out, it’s wise to change the locks to prevent unauthorised entry. This is especially important if the previous tenant made copies of the keys.

Lost Keys: If a tenant loses their keys, changing the locks can prevent access by someone who finds the lost keys.

Damaged Locks: Wear and tear or damage can compromise a lock’s integrity. A replacement is necessary to ensure the property’s security.

When Changing the Locks on a Rental Property Should be Done

  • At Tenancy Turnover: The best time for changing the locks on a rental property is between tenancies. This practice ensures that new tenants start fresh, with no concerns about previous tenants having access.
  • After a Break-In: If the property has been broken into, changing the locks is critical to securing the premises. This also gives peace of mind to your tenants.
  • Upon Tenant Request: If a tenant requests a lock change for security reasons, consider their request seriously to maintain trust and ensure their safety.

Legal Considerations

Before changing the locks on a rental property, it’s essential to understand the legalities. Landlord-tenant laws are strict so it’s wise to check the AST (Assured Shorthold Tenancy Agreement).

  • Notice Requirements: Landlords will need to provide notice before changing the locks on a rental property, if a tenant is in situ.
  • Tenant Rights: Ensure that changing the locks does not violate tenant rights. Tenants are entitled to access their rental at all times.
  • Emergency Situations: In emergencies, immediate lock changes might be permitted. In this case it’s crucial to follow up with proper notice if required.

How to Change the Locks

Changing the locks on a rental property in Peterborough can range from a simple DIY project to hiring a professional locksmith. Here’s how to approach it:

  • DIY Lock Change: If you’re handy, changing the locks yourself can be cost-effective. You’ll need to purchase the new lock sets that match the door type and follow the manufacturer’s installation instructions.
  • Hiring a Locksmith: For more complex locks and to ensure the job is done correctly, hire a professional locksmith. They can also provide advice on the best types of locks for your property.

Choosing the Right Locks

  • Quality and Durability: Opt for locks that meet industry security standards and are known for their durability. BS3621 is the thief-resistant standard required for all external ground floor locks on residential properties.
  • Type of Locks: Consider deadbolts, electronic locks, or smart locks, depending on the level of security and convenience you want to offer your tenants.
  • Key Control: Look for lock systems that prevent unauthorised key duplication, adding an extra layer of security.

Best Practices

  • Keep Records: Document when locks are changed and keep a secure record of key distribution.
  • Regular Maintenance: Regularly check locks for signs of wear or tampering and address any issues promptly.
  • Tenant Communication: Communicate clearly with your tenants about lock changes. Provide them with new keys and ensuring they understand any new features or instructions.

Finally

Changing the locks on your rental property in Peterborough is a straightforward yet critical aspect of maintaining security and tenant safety. By understanding the why, when, and how, along with legal considerations and best practices, you can ensure that your property remains secure and that your tenants feel safe and valued.

Remember, the goal is not just to protect your property! You also want your tenants to trust you. Confidence will allow them to make your rental property a place they’re happy to call home.

For no-obligation advice on rental property management in Peterborough please contact our expert property team at PTL Lettings on 01733 555183 or email info@ptl-lettings.co.uk.

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8 Essential Tips for Finding the Best Tenants in Peterborough

How To Attract The Best Tenants For Your Rental Property

Finding the best tenants for your rental property in Peterborough is one of the most crucial aspects of being a landlord. Good tenants ensure timely rent payments, treat your property with respect, and leave it in excellent condition when they move out. But how do you attract reliable tenants who will make your life as a landlord easier? In this article, we’ll cover eight essential tips for finding the best tenants in Peterborough.

1. Define Your Target Tenants

The first step in finding the right tenants is defining who your ideal renters are.

  • Are you targeting students, professionals, or families?
  • Would you prefer a long-term tenant or short-term arrangement?

Identifying your target audience is critical because it affects how you market the property. Your property management company or letting agent can help tailor your marketing strategy to attract the right demographic.

For example, young professionals may be interested in proximity to transport links and nightlife, while families will likely prioritise schools and parks. Taking the time to clarify this upfront will make the entire process smoother.

2. Market Your Property Well

Effective marketing is essential for ensuring your property stands out, especially when competing with numerous other rental property listings in Peterborough.

Key Tips for Marketing:

  • Professional Photos: Invest in high-quality photos that highlight your property’s best features.
  • Clear Descriptions: Use concise and engaging descriptions aimed at your target tenants.
  • Highlight Key Features: For professionals, focus on transport links and local amenities; for families, emphasise nearby schools and family-friendly spaces.

Pro Tip: Hiring a local letting agent like PTL Lettings can give you an edge. We have the expertise to showcase your property effectively and help you attract high-quality tenants.

3. Don’t Restrict Yourself

To find the best tenants, cast a wide net. The more exposure your property gets, the greater your chances of securing the right tenants.

Expand Your Reach: Ensure your property is listed on major property portals, share it on social media, and consider advertising on online marketplace websites or local forums to broaden your search.

At PTL Lettings, we use social media marketing to give every property maximum visibility.

4. Entrust Viewings to Your Letting Agent

Meeting potential tenants in person during viewings allows you to assess whether they’ll be a good fit. If you’re using a letting agent, they can handle the viewings and provide feedback on the applicants.

Key Questions to Ask Your Letting Agent: Will they conduct individual viewings, group viewings, or an open house session? How will they evaluate potential tenants? If possible, attend the final viewing to get a personal impression before making your decision.

5. Carry Out Comprehensive Tenant Checks

Carrying out thorough screening on prospective tenants is crucial to avoid future problems.

Here’s what you need to focus on:

  • Right to Rent checks confirm whether a tenant is legally allowed to rent in the UK. Failing to perform this check can result in a hefty fine.
  • Credit checks and references verify their financial stability.
  • Employment verification ensures the tenant has a stable income to meet rent obligations.

Tip: Partnering with an experienced letting agent like us ensures all these checks are completed properly and legally.

6. Present the Rental Property Properly

A well-presented property attracts better tenants. Before listing your rental, take the time to prepare it by fixing any small maintenance issues like broken fixtures or peeling paint, giving it a deep clean, and applying a fresh coat of paint. First impressions matter! A tidy, well-maintained property encourages tenants to treat it with respect.

7. Improve Your Property’s Kerb Appeal

First impressions aren’t just about the interior – kerb appeal is equally important. Weed the front garden, add some greenery like plants or hanging baskets, and check external fixtures like outdoor lights and gates to ensure they’re in good condition. When prospective tenants see a well-maintained exterior, they’re more likely to be responsible tenants.

8. Showcase a Blank Canvas

Before you photograph the property or conduct viewings, remove any personal items or clutter. A blank canvas helps potential tenants imagine themselves living in the space. This means clearing out unnecessary furniture, keeping décor neutral, and highlighting the property’s spaciousness and natural light.

PTL Lettings are local experts in residential lettings and property management in Peterborough. We’d love to help you find the right tenants for your rental. Call us on 01733 555183 or email us at info@ptl-lettings.co.uk to get started!

In the meantime, we’ve answered some of your common questions about finding the best tenants for your rental property.

FAQs

How do I find reliable tenants in Peterborough?

Define your target tenants, market your property effectively, and carry out thorough tenant checks. Working with a trusted letting agent can also help.

What checks should I perform on potential tenants?

Ensure you carry out the Right to Rent check, credit checks, and verify employment and rental references.

Is it better to manage viewings myself or use a letting agent?

Using a letting agent can save you time and effort. They have experience in assessing tenants and will handle the logistics, ensuring your property is shown in the best light.

How can I improve my property’s kerb appeal?

Simple steps like tidying the front garden, adding plants, and repainting external fixtures can make a big difference.

Why is it important to present the property well?

A well-maintained property attracts better tenants who are more likely to respect the space and meet your expectations.

Should I advertise my rental property on social media?

Yes! Social media can help you reach a broader audience and connect with potential tenants quickly.

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What is an AST?

What is an AST?

An AST, or Assured Shorthold Tenancy, is the most common type of tenancy agreement between landlords and tenants in the UK. It is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of renting a property.

At PTL Lettings, we believe that understanding what is an AST is crucial to protecting both renters’ and landlords’ rights and obligations, ensuring a smooth rental experience.

Whether you’re a first-time renter or an experienced tenant, navigating the details of an AST can sometimes feel overwhelming. That’s why PTL Lettings is committed to breaking down the complexities of these agreements, so you can approach your tenancy with confidence.

By knowing your rights and responsibilities upfront, you can avoid common pitfalls and ensure you have a positive relationship with your landlord from the start. Let’s explore the key features of an AST and how they affect tenants.

Key Features of an AST

Fixed-Term vs. Periodic Tenancy

An AST can be set for a fixed term, typically six months or a year, or it can roll on a periodic basis (usually monthly) after the fixed term expires. During the fixed term, both the landlord and tenant are bound by the terms of the agreement. After this period, the tenancy can continue unless either party gives proper notice. At PTL Lettings, we can help you navigate these terms, whether you’re dealing with a fixed-term or periodic tenancy.

Rent and Deposit Protection

The AST agreement will specify the rent amount, when it’s due, and how it should be paid. Additionally, any deposit taken must be protected in a government-approved tenancy deposit scheme, such as the Tenancy Deposit Scheme (TDS), Deposit Protection Service (DPS), or MyDeposits. When working with PTL Lettings, we ensure that all deposits are securely protected in line with legal requirements.

Landlord’s Responsibilities

Under an AST, landlords must maintain the property in a good state of repair, ensure it meets health and safety standards, and provide necessary certificates, such as the Energy Performance Certificate (EPC) and Gas Safety Certificate. Our team at PTL Lettings ensures that all landlords meet these responsibilities, safeguarding your living conditions.

Tenant’s Obligations

As a tenant, you are expected to pay your rent on time, keep the property in good condition, and adhere to the terms of the agreement. This includes not causing nuisance to neighbours and seeking permission before making any alterations to the property. PTL Lettings assists tenants in understanding their obligations and ensures that communication between landlords and tenants is clear and effective.

What Happens When the Tenancy Ends?

When your AST reaches its end, there are a few possible outcomes:

Renewal of the Tenancy

If both parties are happy, the tenancy can be renewed for another fixed term, often with the same terms or with new conditions agreed upon. PTL Lettings can handle the renewal process, ensuring everything is in order for both parties.

Rolling Tenancy

If no action is taken, the tenancy automatically becomes periodic. This means that it continues on a month-to-month basis until either the tenant or landlord decides to end it. PTL Lettings provides clear guidance and support during this transition.

Ending the Tenancy

If you wish to end the tenancy, you must provide written notice to your landlord, usually one month for a periodic tenancy or as stated in the agreement for a fixed term. Similarly, landlords need to give at least two months’ notice if they want to regain possession, usually through a Section 21 notice. PTL Lettings is here to assist with the notice process, making it stress-free for both landlords and tenants.

Can the Rent be Increased During a Fixed-Term AST?

Rent increases during a fixed-term AST are usually only allowed if both parties agree or if the contract includes a rent review clause. In periodic tenancies, landlords can increase rent annually by providing the tenant with proper notice, usually one month in advance. At PTL Lettings, we ensure that any rent adjustments are fair and compliant with current regulations.

What Rights Do Tenants Have Under an AST?

Protection from Unlawful Eviction

Under an AST, tenants are protected from unlawful eviction. Landlords must follow the correct legal process, and you cannot be forced out without a court order, even after your tenancy ends. If you’re renting a property in Peterborough, PTL Lettings ensures your rights are fully respected.

Right to Peaceful Enjoyment

You have the right to live in your rental property without unwarranted interference from the landlord. While landlords can inspect the property, they must give you at least 24 hours’ notice and visit at a reasonable time, unless it’s an emergency. PTL Lettings liaises between tenants and landlords to ensure that this right is upheld.

Repairs and Maintenance

If something breaks down, such as the heating system or plumbing, it’s the landlord’s responsibility to fix it in a reasonable time. Always report any issues promptly and in writing to ensure they are addressed. We provide a reliable maintenance service for all properties to rent in Peterborough, ensuring that repairs are handled quickly and efficiently.

What Are the Consequences of Breaking an AST?

Breaching the terms of your AST, such as by failing to pay rent or damaging the property, can lead to serious consequences, including eviction. However, landlords cannot simply evict you for minor issues without following the proper legal process. If there’s a dispute, we can help resolve it through mediation or by guiding you through the legal process.

Understanding your Assured Shorthold Tenancy (AST) agreement is key to a successful and stress-free renting experience. At , PTL Lettings we’re here to guide you through every aspect of your tenancy, from understanding your rights to managing communication with your landlord.

Whether you’re renting for the first time or looking to renew your tenancy, we’re committed to making the process as smooth as possible.

Please enquire here.

Looking for a property to rent in Peterborough? PTL Lettings is here to support you every step of the way.

Landlord looking for help with property management? With our expert services, you can trust us to handle everything from AST agreements to maintenance and legal compliance.

Contact us today at PTL Lettings and let us take the stress out of finding or managing a rental property in Peterborough.

Call us on 01733 555183 or email info@ptl-lettings.co.uk to find out how we can help you.

In the meantime, we’ve answered some of your common questions about AST’s.

Frequently Asked Questions About AST’s

1. Can I leave my AST early?

Yes, but only if your landlord agrees or if there’s a break clause in your tenancy agreement. Otherwise, you may be liable for rent until the end of the agreed term. We can assist you in negotiating an early termination if necessary.

2. What should I do if my landlord isn’t protecting my deposit?

You can raise a dispute with a tenancy deposit scheme or take legal action. It’s a legal requirement for landlords to protect your deposit. PTL Lettings ensures that all deposits are correctly handled, providing peace of mind for tenants.

3. Can my landlord enter the property without permission?

No, your landlord must give you at least 24 hours’ notice and visit at a reasonable time unless it’s an emergency.

4. What happens if I can’t pay my rent?

Speak to your landlord immediately. They may offer a payment plan or some leniency. Persistent non-payment could lead to eviction, but this should be the last resort.

5. What is a Section 21 notice?

A Section 21 notice is used by landlords to regain possession of the property at the end of an AST without having to provide a reason. They must give you at least two months’ notice.

6. Can I make changes to the property?

You usually need written permission from your landlord before making any alterations, even minor ones. Check your AST for specific clauses related to changes.

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The Landlord’s Dictionary: Important Terms to Know

the landlords dictionary

Are you considering investing in a rental property in Peterborough? If so, understanding the various terms and jargon associated with property management is crucial for your success. From legal terms to property management lingo, our landlords dictionary is your go-to resource. It provides clear explanations that can help you feel more confident in managing your investment. In fact, having a reliable landlords dictionary at your fingertips can make all the difference when it comes to keeping things organised and manageable.

Whether you’re inheriting a family property, starting fresh with a new buy-to-let investment, or expanding your portfolio, navigating the complexities of rental agreements, tenant relations, and property maintenance can often feel overwhelming. This is exactly where our landlords dictionary proves invaluable.

Our guide will help break down the essential terms, ensuring you fully understand the jargon so you can manage your properties with ease. With the right knowledge, you’ll be better equipped to handle any situation that may arise.

At PTL Lettings, we like to make your life as a landlord as simple and stress-free as possible. With our landlords dictionary, you’ll have everything you need to stay informed and prepared.

Read our guide, keep it handy, and take the guesswork out of property management.

The Landlords Dictionary: Jargon Explained

Allowable Expenses

Allowable expenses are expenses that are “wholly and exclusively for the purposes of renting out the property.” These expenses are deducted from your rental income, therefore reducing the amount of taxable profit you’ll need to pay tax on.

Annual Percentage Yield (APY)

This term refers to the total return you expect to receive on your investment over a year, expressed as a percentage. It factors in the rent you receive and also any appreciation of the property. Additionally, understanding potential yield allows you to compare different rental properties in Peterborough and assess their profitability.

Assured Shorthold Tenancy (AST)

This is the most common type of tenancy agreement in England and Wales. ASTs typically last for six or twelve months and offer flexibility for both landlords and tenants. Tenants also have the right to ‘quiet enjoyment’ of the property and must give two months’ notice before leaving the rental.

Deposit Protection Scheme (DPS)

Landlords in England, (Wales, and Scotland) are legally required to protect tenant deposits using a government-approved scheme. The purpose of this is to safeguard the tenant’s money in case of any deductions for damages beyond normal wear and tear.

Energy Performance Certificate (EPC)

An EPC is a document that rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). Therefore, having a good EPC rating can attract tenants who prioritise energy-saving features and can potentially help you achieve a higher rent.

Gas Safety Certificate

This is a legal requirement in England and Wales for all rented properties with gas appliances. Crucially, landlords must ensure a qualified engineer inspects the gas appliances every year and provides a valid Gas Safety Certificate.

Guarantor

A guarantor is a third party who agrees to be financially responsible for a tenant’s rent if they default on their payments. Importantly, this can be helpful for landlords who are renting to students or those with limited or poor credit history.

Holding Deposit

This is a non-refundable fee a prospective tenant pays to reserve the property while their application is being processed. Holding deposits are typically capped at one week’s rent.

Inventory Report

A detailed record of the property’s condition at the start and end of a tenancy is crucial. Inventory reports typically include photographs and descriptions of the property’s fixtures, fittings, and any existing damage. These reports are important for resolving any disputes over deductions from the tenant’s deposit.

Inventory Check-Out

This is the process of inspecting the property with the tenant at the end of the tenancy to assess any damage beyond normal wear and tear.

Landlord Insurance

This is a specialised type of insurance designed to protect landlords against financial losses associated with their rental property. Unlike standard home insurance, landlord insurance can include buildings, liability, loss of rent and legal expenses cover.

Letting Agent

Letting agents (or property management companies) manage the rental process on behalf of landlords. This can include finding tenants, conducting viewings, drawing up tenancy agreements, and handling rent collection and maintenance issues. Letting agents typically charge a fee for their services.

Letting Fee

This is the fee charged by letting agents for finding a tenant and managing the rental process.

Maintenance

Landlords are responsible for maintaining the rental property and keeping it in a good state of repair. This includes repairs to essential services like plumbing, heating, and electrical systems. Additionally, upkeep to the structure of the property itself should be taken care of. Tenants are responsible for general upkeep and reporting any issues promptly.

Mortgage Interest Relief

With a buy-to-let mortgage, landlords can claim tax relief on a portion of the mortgage interest payments. This means that, instead of being taxed on the full rental income, landlords can offset some of the interest paid on their mortgage against their rental income, reducing their overall tax bill.

Notice Period

This refers to the amount of notice a tenant or landlord must give to terminate the tenancy agreement. The standard notice period for tenants in an AST is two months, however, landlords typically require longer notice periods for repossession.

Rent Arrears

This refers to the unfortunate situation where a tenant falls behind on their rent payments. Landlords have legal options to recover unpaid rent, however it’s always best to try and communicate with the tenant first to find a solution.

Rent Guarantee Insurance

This type of insurance protects landlords against financial loss if a tenant defaults on rent payments. Costs vary between providers, therefore it’s important to get several quotes.

Rent Review

The process of renegotiating the rent amount with the tenant is typically done at the end of a fixed-term tenancy.

Right to Rent Checks

Landlords in England have a legal duty to conduct “Right to Rent” checks to ensure their tenants have the legal right to be in the UK. This typically involves verifying passports or visas.

Section 21 Notice

A Section 21 notice is a legal document used by landlords in England and Wales to repossess a property at the end of a fixed-term tenancy agreement. This is provided they have complied with all their obligations under the tenancy agreement. The Labour government is seeking to scrap section 21 so it’s crucial to stay up to date with local developments on this.

Selective Licencing

In certain areas of the UK, local authorities may require landlords to obtain a selective licence to rent out a property. This is typically done in areas with high concentrations of rented properties to ensure proper management standards. Ask the team at PTL Lettings if you have a rental property in mind and we can advise you.

Tenancy Agreement

This is a legally binding contract between the landlord and tenant outlining their respective rights and responsibilities. It includes details such as the rent amount, payment schedule, deposit information, notice periods, and maintenance responsibilities.

Tenancy Deposit Scheme Dispute Service (TDS DRS)

If a dispute arises regarding deductions from a tenant’s deposit, both landlord and tenant can access a free mediation service offered by the TDS.

Unfurnished vs Furnished Tenancy

Understanding the difference between these tenancy types helps clarify what is included in the rent and the landlord’s responsibilities regarding furniture and appliances.

Wear and Tear

Normal wear and tear refers to the deterioration of a property that occurs through everyday use. Examples might include faded paintwork, worn carpets, and minor scratches on floors. Landlords cannot deduct from a tenant’s deposit for normal wear and tear.

What Next?

We hope our landlords dictionary is helpful! Understanding these key terms will empower you to make informed decisions as a landlord. Remember, there’s always more to learn, and the team at PTL Lettings is here to help!

With knowledge and preparation, you can navigate the world of property lettings in Peterborough with confidence and success.

Rental Property Management in Peterborough

At PTL Lettings we are your local property management experts in Peterborough. If you need expert letting or property management services to help market and manage your property, our experienced team can help.

Contact us today on 01733 555183, book a valuation or browse our letting and property management services .

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What Are Holding Deposits? A Guide for Peterborough Landlords

what is a holding deposit

As a landlord in Peterborough, you may ask what are holding deposits, and wonder how they work. Two common questions our team at PTL Lettings often answer are:

“Why are holding deposits needed?“

“When is a holding deposit returned?”

To help, the PTL Lettings team has compiled an overview so you can gain an understanding of holding deposits for landlords.

What Are Holding Deposits And Are They The Same As A Tenancy Deposit?

Confusion arises when landlords mistake a holding deposit and a tenancy deposit as the same thing. This isn’t the case. A holding fee is money prospective tenants pay when they apply for a rental property in Peterborough.

This secures the property and is made before the individual becomes a tenant. Once the deposit is paid, landlords are legally obligated to remove the rental property in Peterborough from the market. Legally, a holding deposit can only be the maximum amount of one week of rent. A tenancy deposit differs and is paid before the tenant moves into the rental property. This can be a maximum of 5 weeks’ rent in England if the annual rent is under £50,000. It’s six weeks’ rent if the annual rent is over that figure.

A tenancy deposit is placed into one of the deposit protection schemes approved by the government . If this doesn’t happen within 30 days of its receipt, landlords may face penalties. Holding deposits are not required by law to be included in one of the deposit protection schemes.

The Tenant Fees Act of 2019 introduced by the government aims to make the private rental market easier for tenants. It achieved this by removing administrative charges and high initial expenses that would often overwhelm first-time renters.

Among the reforms was the adjustment of the amount of holding deposit landlords can request from tenants.

Reference Checks And Holding Fees

Once a tenant has paid, the landlord carries out reference checks. When the tenant passes those checks, the next step is to sign the tenancy agreement and arrange a move-in date. Should the tenant fail the checks however, the amount paid as a holding deposit will come into play.

PTL lettings can help with referencing and all other aspects of letting your property.

Can A Prospective Tenant Get A Holding Deposit Back if They Fail Referencing?

Failing the referencing process doesn’t automatically give the landlord the right to withhold any sums paid. However, if the tenant has provided false or misleading information, the landlord has the right to keep the holding deposit. If the tenant doesn’t pass the affordability checks, the landlord may still offer a tenancy. In this case, the tenant would need to find a guarantor or pay rent upfront. If the landlord chooses to no longer proceed with renting a property, the tenant will receive their deposit back.

In a similar vein, if the tenant submits their application and progresses to referencing before backing out, retaining the deposit is often the course of action.

When Is A Holding Deposit Returned?

When the deposit is paid by the tenant, an agreement with the landlord must be reached within 15 days. If this deadline is not met and the tenant has done all they can to secure a tenancy, the landlord must refund the full deposit within 7 days. When everything goes smoothly with the tenant’s application, the tenant will receive the amount of their deposit back. This is usually in the form of a deduction from the first month of rent paid.

Are Tenant Fees And Holding Deposits The Same Thing?

Holding deposits aren’t fees that tenants are charged. Rather, they’re safety measures that protect landlords and their agents from any financial losses. A ban on tenant fees enacted in 2019 has caused some confusion. However, since tenants receive back the amount they pay, it isn’t deemed to be a fee. Therefore, it’s entirely acceptable and encouraged.

Want to Learn More About Holding and Tenancy Deposits?

To find out more, please get in touch with the lettings in Peterborough team at PTL Lettings on 01733 555183 or email info@ptl-lettings.co.uk.

Property to let? For a free valuation click here

Frequently Asked Questions

What’s the difference between a holding deposit and a tenancy deposit?

A holding deposit secures the property during the application process (maximum one week’s rent). A tenancy deposit protects against damage during the tenancy (maximum 5 or 6 weeks’ rent).

Can I keep the holding deposit if a tenant fails referencing?

Only if they provided false information. You can still rent to them with a guarantor or upfront rent.

When should I return a holding deposit?

If an agreement isn’t reached within 15 days or the landlord pulls out, the full deposit should be returned within 7 days.

Are holding deposits banned by the Tenant Fees Act?

No, because the tenant gets the money back (usually deducted from the first month’s rent). It’s not considered a fee.

Rental Property Management in Peterborough For landlords

At PTL Lettings we are your local experts for property management in Peterborough. If you need expert letting agent or property management services or advice, our experienced team can help. Contact us today on 01733 555183 or email info@ptl-lettings.co.uk.

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A Guide to Purchasing a Buy-To-Let Property in Peterborough

A Guide to Purchasing a Buy-To-Let Property in Peterborough

If you’re considering Becoming A Landlord In Peterborough, there are many elements to consider and understand before you purchase a property. The process of buying a buy-to-let property differs from buying a residential property that you will live in yourself, so it’s good to know exactly what to expect.

Of course, it’s a long-term investment that shouldn’t be made in haste, so if you’re reading this, you are probably looking for the right kind of information.

Our team at PTL Lettings are experts in buy-to-let advice, so here is our straightforward guide to purchasing a buy-to-let property in Peterborough.

What is Buy-to-Let?

First things first, the basics. Buy-to-let is a property specifically purchased with the intention to rent it out to tenants. It’s an investment property that can generate a monthly income. As long as the rent being charged is higher than the monthly buy-to-let mortgage payments that is!

A buy-to-let mortgage is different to a residential mortgage, and if you can’t afford to simply buy the property outright, you will need to apply for one.

When applying for a standard mortgage, your income is taken into consideration, whereas with a buy-to-let loan, the lender considers the potential rental income as your primary income source, and considers your personal income as secondary. The interest rates tend to be lower, but they have larger upfront fees, so keep that in mind.

Moreover, deposits on buy-to-let mortgages are also typically larger than the deposit needed for a standard mortgage, so expect to put down at least 25%.

What kind of buy-to-let property should you buy?

The right property is important and can include factors such as the location in proximity to amenities and transport, as well as the neighbourhood and the demand in the area.

Much like when you’re searching for your own place to live, you should ensure you do adequate research into the area you want your buy-to-let property to be located in.

Consider what kind of tenant you want to target and include that in your research. If you’re trying to rent to families, your best bet is to find a property in the suburbs close to good schools.

If you want to rent to students, a property near a university and with cheap restaurants and nightlife is key. Keep in mind, the type of tenants you have renting from you can affect your mortgage, as many lenders have restrictions on student rentals, for example.

Do you need buy-to-let insurance?

The short answer is yes; you should have buy-to-let insurance (also known as landlord insurance). It gives you coverage for the building and the contents inside and any landlord liabilities.

Building insurance is often required by your mortgage lender in order to secure a loan. This will compensate you if your property is destroyed or damaged. The insurance will cover the repairs or rebuilding costs so you don’t have to pay huge expenses out of your own pocket.

Contents insurance will cover any furniture inside the property. It’s a smart idea to get contents insurance even if your buy-to-let property is unfurnished. You can choose what level of cover you require, and it can protect any curtains, carpets, and other furnishings that remain at your property between tenants.

If you choose to rent your property unfurnished or furnished, your tenants will be responsible for their own contents insurance. They will also be responsible for personal belongings when they move in.

Landlord liability is mostly your choice. However, if you’re renting to students, for example, there may be a minimum level required. This covers you for any injuries or deaths of any tenants or visitors in your property.

Do you need to use a letting agent?

This answer is dependent on the budget you’re working with, how much time you have, and the level of involvement you wish to have with your buy-to-let property.

If you want to take a hands-off approach, it is a good idea to enlist the help of a professional, experienced lettings agency for your property management in Peterborough.  

Choosing a letting agent like us means we will help you carry out credit checks on your potential tenants, help you come up with a letting contract, chase late rental payments for you, help with any maintenance on site that needs to be done, and assist with mandatory safety and efficiency checks for gas and energy.

The fees to work with a letting agent typically include paying an ongoing fee to manage the property which varies. It’s always best to speak with your chosen letting agent to get a complete idea of costs.

Generally, utilising the services of a letting agent can take a big burden off your shoulders if you are a budding landlord!

At PTL lettings we offer services that are right for your individual needs. We deal with every landlord independently and our highly trained staff will help you with any concerns you may have.

What Next? Want to Learn More About Buy-to-Let Property?

For professional advice on purchasing a buy-to-let property in Peterborough, contact our expert team at PTL Lettings on 01733 555183. Alternatively, email info@ptl-lettings.co.uk, or book a valuation and we will be delighted to help. We deal with every landlord independently to meet their needs.

You may also be interested to read 8 Things Every Landlord Should Know

In the meantime, here are the answers to the most frequently asked questions about purchasing a Buy-To-Let property:

Frequently Asked Questions About Buying a Buy-to-Let Property

How much tax will I pay on my buy-to-let income?

You’ll pay income tax on rental profits (rental income minus expenses). Mortgage interest tax relief helps offset some of this cost.

What about capital gains tax when I sell my buy-to-let property?

Yes, you’ll likely pay capital gains tax on the profit you make when you sell your buy-to-let property. There’s an annual tax-free allowance to consider.

Is a buy-to-let property a good investment?

Rental yield (your annual rental income as a percentage of the property value) is a key consideration. It should cover your buy-to-let mortgage interest and other expenses.

Do I need to pay stamp duty on a buy-to-let property?

Yes, stamp duty rates for buy-to-let properties are typically higher than residential purchases as it’s not your main home. Talk to a financial advisor about the specific costs involved.

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Becoming A Landlord In Peterborough: 7 Steps

7 Steps To Becoming A Residential Landlord

There are a number of reasons people consider becoming a residential landlord.

Often, it’s because someone wants to do more with their savings and sees property as a sound investment with a regular income. Or a person becomes an accidental landlord after inheriting a property or moving into a house with a partner.

However, while the allure of consistent rental income is certainly appealing, there are several things you need to consider before you begin your property portfolio.

Here are seven things to think about when becoming a landlord in Peterborough.

How to Become a Landlord of a Rental Property in Peterborough

Set-up costs

Finances matter, the numbers have to stack up. If you’re going to obtain a buy-to-let mortgage, the mortgage lender needs to know about your income and what rent you hope to achieve.

They have to ensure that you can cover the costs. You’ll probably have to pay for surveys, too, so they can be sure the house is worth what you think it is.

Then there are the legal fees and the search costs. Many law firms who specialise in conveyancing will be able to give you an early indication of what your final bill will be.

DIY or use a letting agent

You could manage the property yourself – and many landlords consider this as it can help reduce costs. However, you must make sure you have the time to dedicate to the management of the property.

Do you want to use a letting agency to find you a tenant and arrange the initial agreements? You can then keep on top of things for yourself. Or would you rather hand over all the management to the agency? Reducing the pressure on you is great, but there are costs involved with letting agent fees.

Landlord insurance

When you are renting out a property in Peterborough, you must obtain landlord insurance. This is because a home insurance policy will not cover you for what you need, and also because the right insurance will protect you, your property and your tenant.

If you’re taking out a mortgage to buy the property, your lender will insist that you have insurance. The costs of insurance will vary depending on the level of cover, such as personal liability, contents cover and buildings cover, and loss of rent cover, in the unfortunate event of unpaid rent. Speak with an insurer or a broker and be absolutely clear about what you need.

Furnished or unfurnished

Whether you rent out a fully furnished property or one that is unfurnished it is a decision you need to make early on.

If you’ve inherited a furnished property, then it might well be an easy decision. If this is the case, you might find this suits a potential tenant, and you will be able to get a better monthly rent.

Obviously, if you rent out an unfurnished property, it means you don’t need to buy things for it. Many potential tenants prefer this as they can put their own furniture in and make it their home. Don’t forget; it’s best practice to get an inventory carried out as this will affect your insurance policy and could minimise disputes at the end of an agreement with prospective tenants.

Paperwork

One of the top tips for being a landlord is to be well organised and up to date with paperwork from the start. It may seem daunting having a lot of documents, but organisation is key.

Not only will this ensure you don’t fall foul of any legal responsibilities, but it should also mean that if any disputes arise, you know straight away where things are. (It’s also particularly useful when you’re doing your accounts or checking information).

Plus, there won’t be any nasty surprises when you suddenly realise you need to pay income tax!

Legals & responsibility

There are certain legal obligations and responsibilities that need to be understood. These are in addition to the tenancy agreement that you and your tenant should be signing. For example, before a property is let, you’ll need an up-to-date Energy Performance Certificate (EPC) for it.

A gas safety certificate is required for each gas appliance in the property. Each home must have smoke alarms and a carbon monoxide detector. Plus, any appliances or furniture must meet the required safety standards. There are also rules about a tenant’s deposit and how it is kept in a Government-approved scheme. If you need help with any of these, we can advise you. Simply call us on 01733 555183.

Right to rent checks

A relatively new aspect of renting out a property in Peterborough is the need to carry out a Right to Rent check. A landlord must, by law, check whether a potential tenant has the legal right to rent a property in the UK.

Failure to carry out the required checks could result in hefty fines so if you do need advice, then contact us and we will be delighted to help.

What Next? Need expert advice?

Searching for advice on renting out your property? Contact our team on 01733 555183. Alternatively, email us at info@ptl-lettings.co.uk, or book a valuation and we will be delighted to help. We deal with every landlord independently to meet their needs.

In the meantime, here are the answers to the most frequently asked questions about becoming a landlord:

Frequently Asked Questions About Becoming a Landlord and Setting Up Rental Properties

You may be interested to read 8 Things UK Landlords Need To Know

Do I need a license to become a landlord in the UK?

In England, landlords may need to obtain a license for certain types of properties, such as houses in multiple occupations (HMOs).

What responsibilities do landlords have regarding tenant safety?

Landlords are legally obligated to ensure the safety of their tenants by conducting regular gas safety checks. They must also provide smoke and carbon monoxide alarms, and adhere to electrical safety standards.

How can I set a fair rental price for my property?

Research the local rental market, consider property features and amenities and evaluate comparable rentals to determine a competitive and fair rental price for your specific location and property type.

What steps should I take if my tenant fails to pay rent?

Follow the legal eviction process outlined in the relevant UK legislation. This typically involves issuing a notice to the tenant and seeking possession through the court if rent arrears persist.

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Should You Let a Property Furnished or Unfurnished in Peterborough?

Should You Let a Property Furnished or Unfurnished in Peterborough?

Are you deciding whether you should let your property furnished or unfurnished? Many factors come into play when making the decision, like the location, target market, and your return-on-investment goals.

If you’re on the fence about letting a property furnished or unfurnished, here’s an overview of the pros and cons to help you decide.

What Does “Furnished” Include?

As a minimum, all properties to let in Peterborough need to include various amenities, like white goods, kitchen and bathroom fixtures, flooring, and curtains or blinds.

While there isn’t a legal definition of what a furnished property includes, it needs to be considered ‘fit to be lived in’ from the day the letting begins. This usually means it has:

  • Beds: Enough for each bedroom

  • Wardrobes: Appropriate for the number of bedrooms and people

  • Chest of drawers: One or two sets per bedroom

  • Sofas: Ideally to seat the number of people living at the property

  • Dining room table and chairs: Preferably with enough chairs to seat the number of people living at the property

  • Tableware: Enough to cater to the number of people living at the property

What are the Benefits of Letting a Property Furnished?

Choosing to let a furnished property ultimately depends on the target market, the local area and your desired rent price. By letting a property furnished, you can:

  • Get a better or higher rent price

  • Make your property more attractive

  • Attract short-term tenants (if that is your target market)

Are there Downsides to Letting a Property Furnished?

Despite the benefits, there are some downsides to letting your property furnished, including:

  • Size of market: A furnished property doesn’t always attract long-term tenants, so you may appeal to a smaller market seeking short-term lets.

  • Maintenance: It adds maintenance, like handling repair and replacement work.

  • Costs: You’ll need to pay for the furniture, plus repair and disposal costs.

  • Compliance: All furniture provided in a rental property must meet fire resistance requirements. Mattresses and bed bases must be labelled to show they meet BS7177 – a safety standard set down by law. This includes sofas, chairs, beds, and padded headboards. All furnishings must pass the ‘match resilience test’ and the ‘cigarette test’.

What Does Unfurnished Include?

Unlike furnished properties, there is a legal definition of what an unfurnished property includes. They must have a minimum of:

  • White goods, including a cooker, fridge, freezer and washing machine

  • Kitchen and bathroom fixtures

  • Flooring or carpets

  • Curtains or blinds

What are the Benefits of Letting a Property Unfurnished?

Even though furnished properties are usually more desirable, there are some benefits to letting a property unfurnished, including:

  • Less maintenance: Furnished properties come with a requirement to maintain the furnishings. With an unfurnished property, you won’t have this responsibility. Maintaining furnishings can be difficult, especially if you let your tenants keep a pet. 

  • Attract long-term tenants: Long-term tenants often bring their own furniture to a rental, so an unfurnished property could be more desirable to this market.

  • Cheaper: Since you won’t have to pay for furniture, your outlay and running costs could be cheaper.

Are There Downsides to Letting a Property Unfurnished?

Naturally, unfurnished properties attract a different clientele. Letting an unfurnished property can mean you need to charge a lower rent price.

Plus, you may not be able to compete with other nearby rentals if you’re not providing what people want. The best thing to do is research what works well for your property type in the local area before you decide.

Landlords: Need Advice?

Read 8 Things UK Landlords Need To Know

Deciding whether to let your property furnished or unfurnished depends on many things, particularly related to the market in your area. Get a free marketing valuation here.

For personalised advice about letting your property in Peterborough, our friendly team at PTL Lettings are here to help. Give us a call today on 01733 555183 or email us at info@ptl-lettings.co.uk.

Frequently Asked Questions About Letting a Furnished or Unfurnished Property

Is there a difference between a furnished and unfurnished rental property?

Yes. In the UK, all properties must include white goods, kitchen and bathroom fixtures, flooring, and curtains/blinds, regardless of if they are listed as furnished and unfurnished properties . Furnished properties include essentials like beds, wardrobes, and often a sofa and dining table.

What are the pros and cons of furnished vs unfurnished rentals?

Furnished rental properties can attract higher rents and short-term tenants but require more maintenance and upfront costs. Unfurnished rentals are easier to maintain and attract long-term tenants but may lead to lower rents.

Who typically prefers furnished properties?

Young professionals, students, and those relocating for short-term work often prefer furnished properties as they require less upfront investment.

Can I offer a part-furnished property?

Yes, you can offer a part-furnished property, but clearly outline what furniture is included in the tenancy agreement for prospective tenants. Be sure to include essentials like a cooker, fridge, and washing machine, even in part-furnished rentals.