For any landlord, securing the right tenant is potentially one of the biggest factors in the success of your property investment strategy. Whether you own a single property or a vast portfolio, letting your unit to the wrong tenant can have a catastrophic effect on your revenue stream, whether due to non-payment of rent, damage to your property, or even a neighbour dispute.
However, while any seasoned landlord will know that from time to time an imperfect tenant may slip through the net, there are steps that you can take which practically eliminate the chances of letting the property to a ‘rogue’ tenant. We explore ways to ensure that you find your perfect tenant.
Understand the market
If you are in the process of selecting a property for rental investment, make sure that you understand the market in your chosen location. For example; who are the major employers in the area? What type of tenants live in similar properties? What type of condition are similar properties in when let to tenants?
Knowing the market before you even invest is a great way to ensure that you are likely to attract the right type of tenant for your investment strategy.
Ensure your property is attracting your target tenant
Making sure that your property is in the best possible condition prior to even advertising it to let is a sure-fire way to attract great tenants. Take a look at other properties offered in the area online – what type of kitchens and bathrooms do they have? What is the expected standard of décor?
By investing in your property, not only is it possible to potentially increase rental value, but it also helps to ensure that you get the best tenants.
Referencing and vetting your tenants
One of the biggest parts of securing the right tenant for your property is properly vetting and referencing them. Take your time and ask questions that matter to you (or ask your letting agent to ask them on your behalf). Depending on your priorities you may wish to know why they are moving, how long they expect to stay in the property for, and obvious questions such as whether they have pets or smoke.
Properly referencing your tenants is vitally important to protect you from long term issues. Using a lettings agency is of a big benefit here, as they will use a credit referencing agency to do a thorough background check including checking affordability, credit history and previous landlord references.
Choosing the right lettings agency
Choosing the right lettings agency to market your property is also a big plus thanks to their access to a large database of tenants, and of course their ability to advertise on your behalf on leading property platforms.
It’s a sad fact that, platforms such as Gumtree or free landlord boards don’t always attract the highest quality of tenant, as they know that they are unlikely to pass professional referencing checks.
A good letting agent will also understand the market and advise you on the best way to attract the best tenant for your needs.
Benoit Lettings offers property lettings and management across the North West – get in touch with us today to find out how we can help you to secure the perfect tenant.