2019 is drawing to a close, and with a new decade on the horizon, landlords are putting plans in place in a bid to maximise their yield during the new year.
While some proprietors will be content with their existing occupants, many property owners have begun searching far and wide for more desirable tenants to occupy their properties in 2020.
Although there are contingencies that can be put in place in a bid to evade less appealing residents, it can be difficult to fully negate the risk of picking the wrong candidate; if you succumb to a bout of ill judgement, then this can have a detrimental impact on your investment and potentially lead to financial ramifications.
If you were unfortunate to meet an undesirable tenant in 2019, don’t make the same mistake twice. Follow these steps and ensure that you select the right tenant for the upcoming months.
Establish Why the Candidate is Moving
While it may seem insignificant, establishing why a prospective tenant is looking for a new property can often speak volumes.
For every innocuous circumstance such as new employment or downsizing, some candidates often indicate that relations with their previous landlord had become fraught, at which point alarm bells should be ringing.
Asking questions is a great way to learn about the person who is interested in renting your property, so prepare a list of what you’d like to know and don’t hesitate to ask questions to decipher if they’re a suitable option.
Always Ask for References
Some comparisons can be made between employers and landlords, one being that both should always consider references as a prerequisite, irrespective of the circumstances.
Testimonials can provide valuable insight into a person’s character, whether they pay bills on time and can also confirm that they have a stable income.
If there are inconsistencies with references, don’t take any chances.
Never Negotiate on Background Checks
Always ensure that any potential candidate interested in renting your property agrees to a background check.
This part of the application process will identify ill-credit, in which case, you shouldn’t consider the applicant.
If the person in question resists when informed about the investigation, speak to alternative parties. In such scenarios, there will regularly be a reason why a person is objecting and ignoring the warning signs can have serious consequences further down the line.
Confirm Who Would Be Occupying the Property
It’s absolutely fundamental to know exactly who is going to be residing in your property.
There is an increasing number of people living in rented accommodation who are subletting rooms on platforms such as Airbnb. Therefore, when taking on a new tenant, ensure that the tenancy agreement indicates your stance on whether or not this is permitted.
Moreover, if you’re choosing to enforce a no-pets policy, don’t waste time and interview people who are on the lookout for a pet-friendly property; this will waste your time and the time of the property seeker. However, it’s important to remember that guide dogs are classified as working animals and not pets.
Always Take a Deposit
A deposit payment should always be taken from any incoming tenant.
It’s not uncommon for a landlord to ask for the first month’s rent and a deposit upfront to confirm that the would-be tenant isn’t wasting time and their interest is genuine.
If the interested party are reluctant in making these payments or delay, be cautious and consider whether the prospective occupant will have the financial means to pay your rent consistently and on time. If you have any doubts, follow your instinct and look elsewhere.
Pad Residential: A Specialist Tenant Finding Service
Although some owners prefer to source their tenants, many property companies provide a tenant finding service that can be used to ease workload and stress for the landlord.
For example, Pad Residential, part of Scanlans Property Management LLP, is a city-centre based company, who in addition to sales, lettings and management, devote consummate attention to detail in supporting clients during the tenant finding process.
Since forming in 1998, Pad Residential has established a reputation as a trustworthy property company offering an exemplary tenant finding service for landlords; we don’t apply a formulaic approach when seeking new residents. Instead, we consider the individual requirements of each client before acting accordingly, to ensure that the most suitable tenant is sourced.
Are you a landlord on the lookout for a new tenant? Call Pad Residential on 0161 839 9654 to discuss your requirements with a member of our experienced team during a no-obligation consultation.