Startup Landlord? Here’s How to Avoid Nuisance Tenants
Starting out in the buy-to-let market can be daunting, particularly when it comes to finding reliable and trustworthy tenants. What makes the perfect tenant?
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They should complete an application form, covering the following information:
- Personal details, including time at current address and landlord (if applicable)
- Tenancy details: period of tenancy, number of applicants, date to move in
- Referee/Guarantor
- Employment details, including salary
- Misc: smoker, pet owner, etc.
You will need to contact the referee and/or guarantor, plus it would be a good idea to contact previous landlords. Ask to see either payslips or current bank statements to verify their salary. This way you can gauge whether they can actually afford the property. You don’t want them to be defaulting or asking to sub-let.
Credit Check
Appearances can be deceiving, and even if the applicant drives a Ferrari, it’s prudent to do a thorough credit check. This will look into their financial history and current state. Some basic checks are free but to get peace of mind, it’s best to go to a reputable firm and pay the fee. You will need the tenant’s permission and for them to sign a release form. It’s worth noting that there are insurance policies available to protect against non-payment of rent by tenants. If this income is essential, if may be worth considering this to get a perfect tenant.
While it is possible to do all the groundwork to ensure you’ve got suitable tenants, if you have multiple properties, it can consume a considerable amount of time and energy. It might be more cost effective to use a reputable online letting agent such as House Network.
