How to find the ideal tenant for your properties
Upon first glance, it seems a landlord’s job is straightforward: one buys a house, finds a tenant, and then all is well, but rarely does anything go as smoothly as it may seem, so it makes sense to understand the associated nuances, what could go wrong, and what challenges might arise. In this regard, it is important not to overlook the importance of tenant references.
Finding the right tenants is crucial for landlords; if they can distinguish between those who will take care of their properties and those who won’t, their role as landlords will be much easier and more enjoyable.
A landlord-tenant relationship should be similar to any other business relationship; both parties must respect each other, understand what is expected of them, and understand the consequences if things go wrong.
During pre-tenancy referencing you should check the following:
- Understand how much the tenant’s job pays, and how stable their position is.
- Verify the tenant’s legal right to rent the property, see the Government website for information on this.
- Make sure the prospective tenant has a good credit record, for example.
- Assess the tenant’s communication skills; if they are late with email or answering the phone, they may not be easy to work with.
- Ask the tenant about their short-term plans. In the event that they are willing to sign a 12-month tenancy agreement, but admit they will leave halfway through, they may not be the best choice for you as a landlord.
Additional aspects to consider when renting a property
Before signing a contract and giving the keys of a property to a tenant, what else should landlords think about?
What is the process for vetting? Would you rather do this yourself or through an agency?
It is more reliable to use an agency that has access to conduct thorough checks. As well as this it is less time-consuming for you to outsource these checks. – Do they have/are they using a guarantor? – Analyse the contracts that have been drawn up. Leases that are redundant or filled with holes are the last thing a landlord wants.
As well as this, you can always consider contacting previous employers or landlords when applicable. These are reliable references to contact to see whether your tenant will be reliable or not.
If you are unsure of the reliability, a guarantor is something a tenant can use in order to assure a landlord that if they can’t make the payments then there will be someone in place who is liable for this. It is definitely something worth considering. Think of it as insurance on the monthly rent you are going to get from your property
It can take a lot of time, effort, and resources for tenants to be vetted and referred to, and, when carried out comprehensively, can be extremely laborious. Landlords who want to vet a large number of tenants may be required to spend more time on the process, which can be quite time-consuming.
Here at Lofti, we can conduct the pre-tenancy referencing on your behalf. Hit the button here below to speak with us and let us show you how it works!