For any new landlord, finding good tenants for a rental can be daunting. What if you’re lumbered with a void property – for months? Or the tenants you choose fall behind with the monthly rent, trash the buy-to-let you’ve lovingly restored or turn out to be the neighbours from hell?
While finding a dream tenant for your rental properties can’t be guaranteed, there are simple steps you can take, and checks you can do, to ensure you let the place quickly while knowing as much as possible about who you’re renting to.
Here are a few of our top tips, tricks and things that are good to know before you choose your applicant.
If you’re pushed for time, or feel unsure about handling the process yourself, using the services of a letting agent will save you stress. A high street agent will have detailed knowledge of the local market and may already have the perfect tenant registered.
Using an online agent will save you money, but the level of service you receive is likely to be less comprehensive – always look at what’s included in your package and weigh up the pros and cons before you sign on the dotted line.
Setting your rent can be a difficult call, but don’t price yourself out of the market. Do plenty of research of the going rate for homes like yours before you decide on a figure. If you have good selling points, such as parking, a garden or being right beside transport links, you may be able to command a premium. But don’t risk having the property left vacant because you’re being greedy.
Cat and dog ownership has flourished over the lockdowns, yet few landlords advertise their properties as pet friendly. If you’re happy to open the place to furry friends, you could attract a bigger pool of potential tenants.
While it’s natural to be picky about who you rent to, remember that you must comply with the law on discrimination when choosing the best tenant for your home. It is unlawful to discriminate against anyone on the grounds of age, race, religion, disability and sexual orientation. Read more on the gov.uk website.
It is your responsibility to establish that your tenant has the right to rent in the UK. Tenants must provide you with original identity documents, such as passports or official identity cards and you are obliged to check these or face a fine of £3,000. Read more on the gov.uk website.
Research demand and market your property at specific types of tenant, whether that’s families, young professionals or retired people.
Whichever demographic you’re targeting, look for people in stable employment or with an income which will allow them to live comfortably after meeting the rent. If your prospective tenant is self-employed, look for evidence of a long-term, sustainable income. Ask for copies of bank statements and invest in credit checks, to be sure of their past payment history. Credit referencing agencies such as Experian can do this for a fee.
Corporate lets are a safe option if your property meets the standard. They provide an additional level of security because you will be dealing with your tenant’s employer and can hold them accountable.
You need to decide, but make sure you fit your property’s furnishing status to your target tenants. If you have a small, city centre flat aimed at young professionals, they are likely to want somewhere at least part-furnished. Family homes tend to attract people who prefer to bring their own.
It’s a good idea to meet your prospective tenants in person, especially any who you are strongly considering. It is hard to form an opinion about someone if you’ve only emailed or spoken by phone.
Always seek references for your tenants, including from previous landlords. If your applicant hasn’t rented a home before, seek references from their employer or a college lecturer. Contact all referees to ensure that they are genuine.
It is crucial to examine applications carefully and not take anything at face value. Some landlord insurance policies won’t be valid if you haven’t been thorough in this area. Also, make sure you have a look at prospective tenants’ social media profiles. Searching their accounts will give you more information about the person and their employment history.
Before meeting your applicants, think about the questions you need to ask them. An application form can be useful for gathering the right information and helping you make comparisons.
A deposit acts as a safety net in case the tenant causes property damage. The maximum you can ask for is five weeks’ rent upfront. You are legally required to keep this money in a government-backed deposit protection scheme.
Don’t go on your instincts alone – back up good feelings you have with proper checks and references. However, remember that you are entering into what could be a long-term professional relationship with the prospective tenant. If something doesn’t feel right about them, there may be a reason why.
If you’re a landlord with property to rent in Brighton or Hove, we’d be happy to advise you about the best way to find great tenants. Contact us today to find out more.
Do you have any questions about the topic above? Our team of experts is here to help in answering any query you may have.
Fueled by his desire to be the best, most reputable estate and lettings agent in town, Steve has spent his career cultivating The Property Shop. Steve prides himself on his authenticity, honesty, and knowledge-base which is emulated by The Property Shop and his team.
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