6 ways to find the perfect tenant
For a landlord finding the right tenant for their buy to let property can be a very time consuming, stressful & tiring task. Landlords often dream of having the tenant who is always punctual, never misses a payment and keeps everything as clean as whistle. Needless to say, these types of tenants are hard to come by. This guest post is by Paul Gibbens from Housebuyers4u, who has worked for over 40 years in various different property outlets including estate agents & lettings agencies.
Government figures from 2016 show that more and more landlords are evicting tenants from their homes. This could be because of a multitude of reasons but more often than not, the blame lays with the tenant.
It’s not all doom and gloom though. As a landlord, there are things you can do and steps you can take which will increase your chances of finding that dream tenant. We have listed some of them below!
1) Pick a fair rental price
Money is a key factor when potential tenants come knocking. Price it to high and you won’t get any calls, price it to low and you will get too many. The key is to price it in the middle somewhere so you appeal towards the right type of crowd.
When trying to figure out a fair price, two things to keep in mind are the type of property you are renting and also where it is located.
One thing you can do to help you establish the right price is to visit websites such as Rightmove or Zoopla and look for similar properties in the area. Note down how much these landlords/agencies are asking for and then price your property somewhere within that region.
2) Do a credit check
If a potential renter has a good credit rating it shows that they are responsible and are capable of handling their finances which means they are more likely to pay rent on time. This means less hassle for the landlord.
You will have to pay for the credit report but if you’re looking for a reliable tenant it’s well worth it. As the saying goes, it’s better to be safe than sorry.
3) Choose the right type of tenant
Choosing the right type of tenant for your property is another key factor. There are a number of different types and these include:
- The professional couple
- Single parents
- The elderly
- The unemployed
4) Be sure to draw up a tenancy agreement
The NLA advices all landlords to have a tenancy agreement (Assured Shorthold Tenancy) in place when giving one of their properties out to let. This document will basically contain all information regarding the tenancy which includes things like rent amount, deposit amount and the duties both tenant and landlord.
5) Take a deposit
Taking a deposit is a sure fire way to find serious tenants and keep the time wasters away. When choosing the amount it’s important to keep it at a reasonable figure. If it’s too high, people may become reluctant but if it’s too low, you may still attract bad tenants. In general, landlords look to take between 1-2 months worth of rent as a deposit.
Saying this, the main reason for taking a deposit is to cover yourself financially just in case the tenant does turn out to be bad and causes damage to your property.
Do not forget to type this up into your tenancy agreement (if you have one).
6) Don’t say yes to the first person
In most cases you are likely to get more than one person who is interested in renting your property so it’s important not to rush into anything. Take a little time and talk to as many people as possible. You can then go ahead pick the best one from group of people you’ve accumulated.
In some cases you may find the perfect tenant right away. If you find yourself in this situation you should sign them up as soon as possible.
Although following these tips will not guarantee you to find the perfect tenant, it will go a long way in helping you find a good tenant who will make your life as a landlord stress free!
Housebuyers4u is one of the oldest & most reliable cash home buying companies around. With over 42 years experience in the property industry the experts at Housebuyers4u can help with all your property needs. The team at Housebuyers4u are true cash buyers, this essentially means they buy everything with their own funds – there are no middle men involved. By operating this way they can actually guarantee a cash offer regardless of location/situation & complete the purchase of your home as quick as 7 days – no chain.