How to Choose the Right Tenant –
Increasing demand for property in the private rented sector means that landlords often have more than one good tenant to choose from when they let their properties. Tenants are competing for landlords, rather than the other way around
That puts landlords in an enviable position, but can also be a headache. If you have several tenants to choose from, all of whom look good on paper, how do you choose the best one? And what does ‘best’ really mean in this context anyway?
Basics and beyond
Basic credit and referencing checks are the first obvious port of call when you are choosing between tenants. But don’t assume that the tenant with the slightly better credit score will be a better bet than one with the occasional financial slip-up in their history. To make sure you get the best tenant for your property you need to to take references seriously, but you also need to trust your instincts.
The key to a successful tenancy is a good relationship between landlord and tenant. Tenants that you like and get on well with, and can develop a good rapport with, are more likely to respect your property and make every effort to pay their rent on time, even if they are struggling financially. Even if you are using a letting agency, try and meet your tenants in person before you commit. Meeting face to face is the only way to establish whether your prospective tenants are the kind of people you would like to do business with. You wouldn’t choose a letting agent without meeting them first, so why choose a tenant without doing the same?
Asking questions
As well as establishing whether you think your tenants are the kind of people you would like to work with and think you can trust, you need to find out what they want from the tenancy. Are they looking for a long-term let, or are they likely to want to move on after six months? That young professional couple with a good income might seem like a better bet than the family with three children and a dog, but it may be that the family will want to stay in your property for years to come, while the couple only want to stay short-term. Choosing the right tenants should be a decision that balances several different factors, including reliability, credit-worthiness, their future plans, and yours. And always remember that even the best laid plans can go wrong, and you may face void periods, late rent payments or unexpected repairs. Choose good landlords insurance to protect yourself.