One of the biggest challenges you face as a landlord or property manager is choosing the right tenants for your building. It can often be tempting to just accept the first tenant who comes along, but there’s much more involved in the process than you may realise.
A bad tenant may miss rent payments, or cause damage to your property. That’s all money that comes out of your pockets. To avoid this, you need to implement a proper screening process to ensure you get the right type of tenant every time.
So how do you do it? This guide will show you the ropes.
Don’t Skimp on Background Checks
Background checks are your first port of call whenever you’re considering a new tenant. Ask to see evidence of the tenant’s recent work history, and don’t be afraid to ask about the nature of their work, or the stability of their job. After all, a change in working conditions for them means you may not get your rent payment.
You should also talk to any previous landlords, to find out about the tenant’s payment history. Avoid any who have a history of payment failure, or those who caused unneeded problems for their previous landlord.
Don’t Accept the First Offer
We alluded to this above, but it’s worth expanding on. The first offer is not always the best one. It may be difficult to see this if your property has sat empty for a month or two, but you should never rush when choosing a tenant.
Conduct your background checks as normal, and show a little patience. If you’re wary about the first offer, don’t accept it. Others will come along in due course.
Create a Strong Written Contract
The tenancy agreement is the legal contract that defines your responsibilities, and those of your tenant. Failing to give it the proper attention creates loopholes that a tenant could exploit to get out of paying what they owe.
Don’t try to draft the contract yourself. Unless you have a legal background, going it alone leaves you open to making mistakes that could damage your relationship with the tenant. Instead, bring in a property law expert and have them draft a contract in line with what you want from your tenants. This ensures you have something to fall back on if things go wrong, plus a strong contract may dissuade poor tenants from applying for your property.
Check the ID
Since February 2016, landlords have a legal responsibility to check that their prospective tenants have a right to live in the United Kingdom. That means you need to check the tenant’s ID and confirm that they are who they say you are before you exchange contracts and hand over the keys.
Ask to see a passport, and any immigration documents where relevant. Make copies too, as they will prove useful should something go wrong and you have to prove that you made your checks.
If you’re unsure about how to attract the right tenants, leave it to the professionals. Hills Estate offers property management in London that will ensure your property generates an income.
