There are good tenants and bad tenants in every building. If you get it wrong, you could lose a lot of money due to property damage or failure to pay your rent. While no screening method is flawless, following these 10 guidelines can help you discover an excellent tenant for your rental property.
Reach out to a large number of people to expand your applicant pool:
If you have more individuals to pick from, your chances of finding a decent tenant are better, so market your property as widely as your budget allows. You might also target your marketing to certain types of tenants that you believe are a safe bet. Corporate lets, for example, might be a suitable alternative because firms are frequently ready to pay a premium for high-quality accommodations and sign long-term leases. You can also get a free property valuation to set up a fair price for your property. Retired folks make good tenants since they are more likely to look after your property. Don’t think that just because they are retired, they aren’t financially secure.
Maintain the appearance of your property:
While there is a significant demand for rental property in London, no one wants to rent a decrepit house. Ascertain that the space is well-decorated, with a modern bathroom and kitchen. Keeping up with repairs and maintenance will make it easier to find new renters and avoid costly and time-consuming repairs that will leave the property out of commission between tenancies.
Carry out checks:
You want renters who will pay on time and take care of your property. Background checks are an important component of weeding out bad tenants and preventing horrible situations. It’s critical to treat all of your potential tenants fairly and equitably, therefore your screening procedure should be consistent. It’s important to remember that discriminating against someone based on their sex, ethnicity, religion, or sexuality is illegal.
Checking references:
Request references from past landlords from your potential tenants. Don’t just file them away; call the landlord to double-check the information you’ve provided.
Verify your earnings:
You want a renter who earns at least three times the rent on a monthly basis. Request copies of their pay stubs and check their job status, length of work, and earnings by calling their company.
Checking your credit:
A credit check will reveal outstanding loans and obligations, as well as any defaults, missed, or late payments, to your prospective tenants. This will assist you in determining whether your prospective tenant can afford the rent and whether they are likely to pay it on time. Experian and TenantVERIFY are two companies that can undertake credit and identification checks on your behalf.
Checks for the right to rent:
The Right to Rent Act requires landlords to verify that all renters (aged 18 and over) are legally able to rent their homes. This will entail requesting actual documentation proving their right to reside in the United Kingdom.
Get to know your tenants:
You want a renter that will be transparent and honest during the term and will be simple to work with. When you meet someone face to face, it is much easier to establish an accurate opinion of them. If you live a great distance away from the property, make sure someone you trust meets them on your behalf; this is one area where a competent letting agent may help. You might also look at their social media presence to see if they’d be a good fit as a tenant.
Ask as many inquiries as possible:
When you meet your prospective renter, ask a lot of questions. By getting to know them, you will have a better picture of the type of tenant they will be.
- What is causing them to move?
- Where did they previously reside?
- Have they ever had a disagreement with a landlord or a property?
- Do they have any pets or do they smoke?
- How long do they intend to rent the property?
- What do they do for a living and how long have they been there?
- Who will be staying with them in the house?
Select a dependable tenant:
When examining your tenant’s references, be aware of people who have moved around a lot or changed employment a lot in the recent few years. Because past behaviour is frequently an excellent predictor of future behaviour, you may find yourself with another vacancy on your hands.
Be pet-friendly:
Allowing pets in your rental home may increase interest in your rental property and broaden your pool of prospective tenants, as just about 4% of London landlords publicly accept pets in their premises. Your tenants will also have a strong incentive to stay longer because finding alternative pet-friendly housing is difficult. Pet-owning tenants are more stable and responsible and are thus more likely to respect your property. They will be grateful that you have let their furry buddy stay with you, and they may repay you by taking care of your property.
Consider the long term and follow your gut:
If you must pick between a short and long-term lease, keep in mind that short-term rentals are more likely to leave you without tenants at some point. Tenants that are willing to sign a 12-month lease with no break clause are preferable. You can screen all you want, but your instincts are sometimes the best judge of character.