27 Feb 5 ways to ensure you have good tenants
Having a bad tenant in your property can be one of the most frustrating experiences you ever have as a landlord. Poor rent payments, never-ending maintenance requests and late-night parties can put excess financial and emotional strain on you.
Is having good tenants as easy as 1, 2, 3? The answer is…no. It takes more than good screening and a well-written tenancy agreement to ensure you have good tenants. Good tenants are like gold. They contribute to the bottom line through paying rent on time and behaving well.
A stress-free life is invaluable for any landlord, so we’ve gathered together a shortlist of ways to make sure your next tenants really are the best of the bunch:
Researching your applicants
One of the biggest problems with taking in tenants is the lack of information available at the screening stage. But access to this information can be critical in enabling you to make an informed decision. You should ensure that you conduct thorough tenant reference checks which will tell you all about their renting history, their work and other important details.
You should also check the applicant’s employment history to see if they tend to move around regularly. Finding flexibility in employment will suggest that renting is just one lifestyle choice among many others, which isn’t always a good sign.
Researching your local market
As a landlord, it is important that you understand the local rental market before searching for an ideal tenant. Find out what similar properties are harginf for rent in your area and also what the average vacancy rate is for the type of property that you would like to rent out. This will ensure that you set a reasonable rate of rent, after all, charging too high will prevent people from being interested but charging too little will undersell the property’s value.
Fulfil your responsibilities
Landlords, know your responsibilities. Compliance with the law is an essential part of being a landlord. It enables you to get good tenants and maintain good relationships. As a landlord, you must:
As a landlord, you must:
- Ensure the property is safe and free from hazards
- Ensure all gas and electrical equipment is installed safely and maintained over time
- provide an Energy Performance Certificate(EPC) for the property
- protect any deposits in a government-approved deposit protection scheme
Get your property in good shape before renting out
Good properties attract better tenants – and that starts from the moment they look at it. Just like you, the right tenant is looking for an investment, and there is a lot at stake. Furthermore, when the tenancy is up for renewal, your relationship with the tenant will be very strong, facilitating a smooth handover to new tenants. Also, consider the furnishing as the carpets can stain so hard flooring might be a better long-term option.
You should also have a complete record of all dealings, which can come in handy in various situations.
Follow your instincts
Follow your instincts when picking new tenants. Sometimes, you can just follow your gut when you’re deciding whom to rent to. If the relationship isn’t right from the start, they can make it a lot tougher for you.
Your success in property management depends on your choice of good tenants. Whether you have just started managing a property or are looking to grow your portfolio, ensure you choose great tenants to guarantee positive cash flow and the best possible return on investment for your property.