Every landlord hopes to find the ideal tenant for their property. Tenants that pay their rent on time, keep the property in good nick and preferably opt to stick around for a while, ensuring peace of mind for both you and them. Thankfully, there are numerous ways to improve your chances of attracting such tenants to your property. It’s vital though, that you live up to your end of the bargain if you want tenants to reciprocate the positive vibes.
Renting out a property for the first time means learning about landlord insurance for residential property owners, understanding the legal and administrative obligations, and dealing with occasional maintenance issues, but such areas only become an issue once you have tenants in place.
While there is no guaranteed formula that can ensure you have great tenants, there are a number of tips you can follow to get you off to a good start. So, here are 5 tips for attracting the IDEAL tenant.
DECIDE WHICH DEMOGRAPHIC YOU WANT
If you want the ideal tenant, you’ll need to be the ideal landlord. Simples. You should furnish your property according to the demographic you’re hoping to attract for best results; for instance, if you want young professionals living in your property, make sure your décor and amenities are up-to-scratch and it’s a good idea to offer an office space. Or do you want to rent to a young family? If so make sure your house is child friendly. Only if you do your job as landlord to the best of your ability do you deserve tenants who do their bit.
DO A BACKGROUND CHECK
Do a background check of any potential tenant, with their permission of course, regarding their finances and ability to pay the rent. Although you may worry about being intrusive, it is considered acceptable – though pretty suspect, ethically, perhaps – to ask to see three months’ worth of bank statements.
You could also ask for and follow up on at least two references, one of whom should be a previous landlord. And don’t be cagey about any of your details and history, as it’s only fair that tenants can ask the same information of you. Be aware that you can’t carry out a DBS check on your tenant; it’s both immoral and not allowed by law. The tenant can, however, provide you with one if they so wish.
CONSIDER RENTING THROUGH AN AGENCY
One advantage of renting your property through an agency is that they will carry out detailed background checks on your tenants to spare you having to ask any awkward questions. Be sure to read through any such reports carefully so you can make an informed decision about whether to rent to the person. Red tape and regulation probably don’t set your pulse racing; an agency will take care of a fair bit of the buerucracy, leaving you to take care of the tenants.
HAVE A GOOD TENANCY AGREEMENT
The assured shorthold tenancy agreement is equally binding for you as it is for your tenants, so be sure it is properly drafted. It should be signed by both yourself and your tenants. You should also take the opportunity to create a detailed inventory of all the contents, fixtures and fittings of the property, so there is no possibility of a dispute at a later date. All landlords should also cover their possessions and find out what’s covered (e.g. from fire/water damage, theft, etc.).
GET A SECURITY DEPOSIT
It’s standard practice for tenants to pay a security deposit of between four and eight weeks before moving into a property. Ask for one, but preferably be flexible with how swiftly it’s paid. These are hard up times, and cash flow issues can happen to the best of us. Showing a little understanding in the first flushes of transaction will bode will for future cooperation between you and your new tenants.
If you’re a first time lessor and need some extra tips, check out the below infographic featuring a handy Landlord checklist.
