CPM Estate Agents

   Property Management  

Guide to Lettings

For more information, download our print out version of  'Guide to lettings'

                                                                                                                                                                                                                                                       

Why Buy-to-let?



Buy-to-let is where a property is bought specifically to be rented out to tenants, rather than lived in by the buyer.


One of the main reasons people buy property and let it out is to make money when they eventually sell. If you do decide to buy a property, there is no guarantee when you sell that the property has increased in value over the years. Buy-to-let is a great way of generating an extra income as the rent you charge your tenant should more than cover your monthly mortgage repayments.


                                                                                                                                                                                                                                         

Buy-to-let mortgages



If you intend to rent a property to tenants, you will most likely require a buy-to-let mortgage. They are usually more expensive than normal mortgages, but they could help you become a property investor. These mortgages are similar to those issued to owner-occupiers as they come with the same kind of fees and charges.


There are a few differences including:

1.       Interest rates tend to be a little higher on buy-to-let mortgages.


2.       The amount you can borrow in relation to the value tends to be lower so a larger deposit is often required.


3.       Arrangement fees for buy-to-let mortgages tend to be higher.


4.       Your repayments are assessed on how much you will rent the property, not on your income.


                                                                                                                                                                                                                                         

Tenancy Agreements



The tenancy agreement is a contract between you and your landlord/tenant. It may be written or oral. The tenancy agreement gives certain rights to both the landlord and the tenant, for example, your right to occupy the accommodation and your landlord’s right to receive rent for letting the accommodation. Most private tenants will be assured shorthold tenants.


The main difference is that a landlord who has let their property under an assured shorthold tenancy agreement has an automatic right to regain possession of it at any time after any fixed term of the tenancy agreement has expired. Assured shorthold tenancy agreements, which don't have fixed terms, are known as 'periodic tenancies'. Landlords can give their tenants notice that they are terminating the tenancy at any time during a periodic tenancy, whereas landlords who have let their property using an assured tenancy agreement must wait for the fixed period to elapse before giving notice. In both cases, 2 months' notice is required.


                                                                                             ------------------------------------------------------------------------------------------

Property Management



The process of property management is to allow landlords to pass on the management of their property to an independent company. This could involve collecting monthly payments, seeking tenants, maintaining the property and upkeeping grounds.


We at CPM offer a very competitive property management service that allows landlords to concentrate on developing properties, while we manage everything from repairs, collecting rents to contacting external contractors.  The processes can be regular or can be on request.