How To Get Better Tenants

Who is your perfect tenant?

Let’s think about how we define our perfect tenant. It might differ from landlord to landlord and will depend on what’s important to you. You’ll also consider the type of property you own and the area you’re in – for example, is it a HMO? Are you located in a city centre full of professionals? Or is it an area popular with families?

The type of person you are able to target will determine how you categorise them, such as:

Nice to meet you

The best way to get a feel for a prospective tenant is to actually meet them. As humans, we have an in-built ability to make hundreds of judgments based on seeing and talking to another human being, so what better way to get an idea of whether a person is right for your property?

This creates the opportunity to ask them questions about their situation, such as their reasons for moving, past rental situations, their jobs, and even their hobbies. It’s a great way to get a feel for who they are in a more natural and less formal way.

Don’t make promises at this stage, though. It’s perfectly ok for you to tell them that you’re not ready to make a decision yet and that you’ll be in touch, especially if you’re not getting a good vibe from them. You don’t have to take the first tenant you meet – in fact, you probably shouldn’t.

Check them out

Make sure that you do all the proper checks. Having a credit check, verifying their income, and immigration checks, will all determine whether they are the right tenant for you, and whether they can afford to pay their rent. However, be careful not to discriminate – letting things like race or colour, religion, or even benefit claims cloud your judgement is a big mistake, and as well as being unfair, is illegal.

Something else you might consider; using Google. Many people use social media, whether that’s Facebook, Twitter, or Instagram, and it’s surprising what you can find out about a person just by searching their name. It’s a useful tool if you want to make sure that the person applying to rent your property is right for you, as you can often get a good feel for their background, friends and opinions, which could all give you an indication of how they will be as a tenant.

Go with your gut

Above all, trust your instincts. If you want better tenants, it really is worth making the effort to meet them, talk to them, and don’t be afraid to do a bit of basic research into their background. Ask questions, and take the time to get a real feel for who they are. And be brave enough to admit if you don’t like them – there’s absolutely nothing wrong with admitting they are not a good fit for you, and looking for someone who is. So many landlords are in such a rush to get someone into their property that they just sign up the first person who takes an interest – and then have regrets when they create problems in not maintaining the property, or worse still causing damage or complaints.

Hopefully, this post has given you a little bit more confidence to go out there and seek out your perfect tenant. Making that little bit of extra effort can save you so much heartache in the long term.

Things you should consider before you rent out your property (Part. 2)

Mortgage Consent

If you are renting out a property that you have previously lived in yourself, you will be required to apply for a buy-to-let mortgage. A property cannot legally be leased on an ordinary residential mortgage.

If you have lived in the property prior to wanting to let it out, first check with your lender, as there are some rules which may differ from lender to lender – for example, some lenders specify that you are required to have lived in the property for a minimum of 6 months, to ensure that you have not, in fact, bought the property with the intention of renting it out in order to cheat the system and avoid the fees and deposit required. So it’s a good idea to check this before you do anything else.

Check your lease

Something else that is easy to overlook is the lease. This applies if you are letting a leasehold property, usually a flat or apartment, but bear in mind that you will need to make sure that your lease allows you to rent out the property in the first place.

In addition to this, check that there are no other restrictions, such as allowing pets etc. If there are, these will need to be made clear to the prospective tenants when they view the property.

Insurance

Make sure that you have the right kind and level of insurance, one which covers you for tenant related issues. Your ordinary home insurance will likely not do what you need it to do, so if you have a buy-to-let on the property, it’s essential that you have the right insurance product to match your needs.

If you don’t live in the property, the kinds of risks are very different, and you will need to cover yourself as a landlord for things such as loss of rent, malicious damage, and legal expenses. A more specialised insurance will take that into account.

Tenancy Agreement

When did you last review your Tenancy Agreement Documents? It’s so easy to keep regurgitating the same cut-and-paste document you’ve always used – but in reality, things change. If your current document is more than 6 months old, it’s worth going through it, as there have been updates in terms and regulations which you might need to revise in the text.

Remember; the Tenancy Agreement is there to protect you and the tenant, and so anything that’s missed off or out of date can and will land you in hot water if something goes wrong. Do not put yourself in this situation – get it checked, and get it updated.

Inventory

An Inventory is not, as some landlords believe, just for furnished properties. It’s important that you list everything within the property to make sure that you are covered for any damages during the lifetime of the tenancy. This includes every aspect, from the condition of the walls, flooring, lighting and electrical furniture, doors and handles, windows, fitted appliances….

Your Inventory is the only evidence you are going to have if, at the end of a tenancy, you find that there is more than just wear and tear to the carpets, that kids have embellished their walls with crayon, or the kitchen units are damaged.

If you can, as well as a comprehensive list, take photos of everything within the property, so that you can prove the original condition of the property before the tenants move in.

Deposit Registration

You should sort out Deposit Registration BEFORE you rent out your property. Make sure that you have done your research, and looked for a suitable scheme in time for the start of the tenancy.

We’re often asked about the standard of free schemes vs paid ones; this really comes down to personal preference, there are some very good free schemes out there – just do your homework, ask for recommendations, and don’t rush in if you’re not sure.

Deposits must be lodged within 30 days of payment – in other words, you have 30 days from the payment date to lodge the deposit, and then you must issue the tenant with a certificate which lets them know the details of the company with which you have lodged their deposit. This should happen at the start of tenancy, and at the stage of renewal.

You as a landlord

How various landlords operate differs widely – from the types of properties they rent to how involved they are with management and upkeep. There is no one size fits all, but the one thing that all landlords should agree on is to make every effort to keep up to date with the lettings industry, with legislation, changes in the law, and current trends.

The more knowledgeable you are, the better prepared you are to deal with tenancy problems and queries down the line. Knowing current legislation can be the difference between a contented tenant and a spell in prison.

There are plenty of online communities and groups where you can go for help and advice, and if you personally know other landlords, it can be a great bonus to you. Seek them out, ask for their help and advice if you need it.

We run FREE monthly webinars that are purely for the benefit of landlords, all on specific legal advice and the latest updates in legislation. These are delivered by our compliance expert Dawn.

Click the link here to register for our next one, but be quick, as they are extremely popular and there are only a limited amount of spaces available!