Choosing a problematic tenant can turn out to be a massive headache in the long-run, and can cause you a huge amount of stress. That’s why taking the right steps to find the perfect tenant for your rental property is paramount.
Here are a few of our top tips for doing so:
1. Cast Your Net Wide
Cast your net wide when you’re searching for a new tenant. The likelihood of finding your ideal tenant is far higher when you have more people to choose from. Check social media for ‘room wanted’ pages, advertise your property across multiple platforms, or even check advertisements in the local newspaper.
2. Income
Making sure your potential tenant has a steady income is crucial when letting a property. Usually, landlords will prefer the tenant’s yearly income to be 30 times that of the monthly rent; if rent was £900 a month then the tenant will need to earn around £27,000 a year.
If the tenant is self-employed, proof of sustainability of income from an accountant, or tax returns/bank statements will need to be provided. A background check can also prove useful in this area.
3. Background Checks
This is the point where professional letting agencies are an incredibly valuable asset when finding a new tenant for your rental property.
Letting agencies can easily run checks on basic affordability, previous landlords, land registry checks if the tenant owns a home, and enhanced credit checks, as well as looking at anyone financially associated with the tenant.
4. Guarantors
Having a guarantor certifies that the rent will be paid, even if the tenant has not paid themselves. A guarantor is a third party associated with the tenant who guarantees your income in the event of non-payment. This gives landlords peace of mind knowing that the rent will be paid each month, no matter what.
5. Pets
People love their pets but as a landlord, reviews tend to be mixed. Longevity and sustainability are important for your property generating a steady income. In any household, having pets can result in damage to floors, walls and furniture which increases the cost of upkeep while also running the risk of noise complaints.
Some landlords choose to eliminate this risk by only letting to pet-free tenants, whilst others only allow small animals or charge a small premium on the monthly rent to help offset potential damages. Whatever your stance on pets, make sure this is effectively communicated to potential tenants and in the wider advertising to avoid conflict at a later stage.
6. Know Your Local Market
Pricing the property correctly yet competitively is essential to letting it out quickly. You never want to dramatically over or undercharge your tenants, and overcharging is a massive dissuader. Do your research into average prices in the property’s area, and consult your local estate agents and their regional expertise.
Contact Simpson and Weekley today for a free valuation in the Rushden and Wellingborough area.
7. Meeting the Applicants
Meeting your prospective tenants is always a smart idea; you’ll get a much better idea about them in person than over the phone or email. Spending around 10 minutes with them is more than enough time to more effectively judge if they are a good match.
8. Have an Agent
There are many different, often tricky, elements in the process of finding a new tenant. If you don’t feel confident enough to carry out all of these procedures properly then contacting a lettings agency is the best place to start.
If you’d like to more information about landlords, read our article about the benefits of becoming a landlord.
For more information about rental accommodation, tenants, profit, where to start, initial expenses and property management visit our landlords’ page, call our Rushden office on 01933 418 917 or our Wellingborough office on 01933 224 953, or use our online enquiry form to start your journey with Simpson and Weekley today.