Rent arrears can be reduced, void periods can be reduced, and landlord satisfaction can be increased when you find the right tenants for your properties.
Your agency will need to properly screen each prospect to ensure that they are a suitable tenant. They will also need to look out for several things in a rental application from a tenant. An ongoing concern for landlords is worrying if a tenant will be able to pay their rent on time.
If you choose the right tenant at the beginning, you can eliminate the likelihood of stress and conflict later down the line.
Check the tenants’ Credit Score
If you check the credit scores of potential tenants, you can determine if they can pay rent on time. An employee’s credit report can provide information about his or her current debts, payment history, and credit score overall.
Rent can be determined by requesting more information from tenants with no credit score or a below-average credit score.
Looking into tenant income
An application for a rental property should include proof of income since this will determine whether the tenant will be able to pay their rent. Tenants’ payslips or any tax returns that they receive are often checked by landlords. A bank statement or other documents showing income can also be requested by your agency.
You can also perform an affordability analysis using Advanced Tenant Referencing to verify the current income of potential tenants. Lofti is able to carry out affordability checks through the pre-tenancy referencing stage through the property management software. Email us at firstname.lastname@example.org in order to find out more about how we can assist with pre-tenancy checks.
Check the history of employment
You can also determine whether a tenant will be able to pay their rent by reviewing his or her employment history. You can also verify the tenant’s employment by calling the workplaces based on this information.
Despite their limited knowledge about the tenant, employees can tell you how long the employee has been working for the company as well as how much money they are receiving at present.
Check for references
Keeping contact with previous landlords to provide references is an important part of making sure you hire the right tenants. This step is often overlooked but is very important because previous landlords can provide any issue with tenants.
In addition, if you are unable to contact previous landlords, or if the tenant has never had any previous landlords, you can ask them important questions about rent payments or any other area that you might need to know.
Personal characteristics and lifestyle
It is important to consider the lifestyle choices of potential tenants when deciding if they are suitable for the property or not. For example, if the tenant has pets or smokes, it should be considered.
The agency may run a criminal record check that can determine whether the tenant has any charges or any offences that may have occurred with the tenant.
It is also important to determine the tenant’s interests, especially if they share a communal space with other tenants. Student tenants who frequently entertain guests might not be a good fit for a property where working professionals already live who enjoy peace and quiet, for example.
It will be easier to lessen future frustration and conflict if you take the time to consider the tenants’ lifestyles and personalities.