How to Find a Reliable Tenant

You have a property that you want to lease out. How do you ensure that you are not saddled with a troublesome tenant or one who falls behind on rent? This guide covers the checks you need to do.

Stable Job

You want a tenant with a steady job and sufficient income to pay for rent without going short. If the rental amount is £1,000 a month, the tenant must bring in thirty times that amount annually, i.e. £30,000. However, this is the bare minimum. A tenant who can still cover all their accounts and needs after paying rent is more likely to stay on for the duration of the lease. Rental should not be more than 35% of their monthly income.

Self-employed tenants can provide proof of income with bank statements, while one working for a company can provide payslips. One advantage of bank statements is that you can see if they are in the habit of paying their rent on time.

The Right to Rent

You are required to check all prospective tenants and other members of their household who are 18 years and older for the right to rent in the UK before you can take them on as tenants. This must be proved by their original documents. Copies are not acceptable. You cannot do racial, gender, nationality, religion, or disability profiling and only check some applicants; you have to check anyone you are considering renting to.

Background Checks

A comprehensive background check will tell you a lot about a tenant. Letting agents have an advantage here as they can access credit-referencing agencies, look at the land registry to confirm property ownership, use Experian for detailed credit checks, and gather information on any financial associations. In fact, if you go through a letting agent in Bath they will manage the entire process from checks through to the end of the lease.

Ask for a Guarantor

A guarantor can provide you with the confidence that you will receive the rent every month. You can request a deposit to cover the equivalent of six weeks’ rent. Plus, you can ask for rental payments in advance. If this is done as a direct debit order, it will make it even more secure.

First Impressions

Our instincts are usually spot-on when we meet someone for the first time. If you feel uncomfortable with a prospective tenant in the first few moments, you should trust your gut. Take a look at their social media profile too, to see what type of person you are dealing with and if they are likely to be a problem tenant.

Length of Tenancy

A stable tenant will want a tenancy that is at least a year long or even two years. You don’t want to start the process of looking for a new tenant after three months. The nature of their employment and the company they work for will give you a hint if they are fly-by-night or serious about a long-term rental. Find out how long they have been with their company to determine if they have a steady employment history and won’t be making excuses about the rent a few months into the tenancy.

Communication

Make sure the tenant knows that you want to be notified of any problems as soon as they occur. Some tenants are reluctant to let owners know if something goes wrong in case they are expected to pay for it or are kicked out. Reassure them that problems will be fixed promptly so that you don’t end up losing a great tenant who got tired of dealing with maintenance issues.

Legislation

You need to be aware of changes to legislation that affect the leasing of property. For example, the tenant fees ban that came into effect in 2019 favours tenants. You will no longer be able to charge them for renewing the lease or special fees upfront. This is another advantage of getting a letting agent to handle matters for you as they will be aware of legal compliance issues and can guide you accordingly.

Get Buy-in from Existing Tenants

When you are showing the property to prospective tenants, you need to have a flexible tenant who will not mind prospective tenants being brought in. Bear in mind that this can be a huge inconvenience to the outgoing tenant who is trying to pack, make meals after work, and probably values their privacy. Maintain a good relationship with the tenant to get their cooperation.

Maintain the Property

Keep the rental unit and garden in good repair and tidy. This will allow the tenant to feel pride in their home. They will be more inclined to take care of it.

While there is a lot to check, it will be worth it when you find the right tenant.