As a landlord letting a property, finding the right tenant is one of your most important challenges.
Let’s take a look at real life examples and break them down so that you can identify your ideal tenant.
A tenant check or referencing can help identify the right tenant, you may want a short term or long term tenant. Here’s some indicators to look out for.
Short term let tenant indicators:
- Moving temporarily to in a different area for business purposes,
- A job moving around for different projects
- An overseas visitor on a short or medium term visa
- New to an area and not wanting to commit to a long let or property purchase
Long term let tenant indicators
- Previous record of long term lets
- Enrolment at a particular place of education (themselves or family member)
- Connections to the area (e.g. family or friends)
- Permanent employment role
Background checks on your tenants give you access to very valuable information including looking at their credit reports, criminal activities, and previous evictions. These are followed up through fraud checks, references from employers, accountants and previous landlords. There are plenty of tenant referencing firms who can carry out these checks.
Signs of a good tenant
. There are a number of qualities to look out for in an ideal tenant. Good tenants are likely to:
- Show a genuine interest in the property
- Take and make important phone calls accordingly
- Have a genuine and positive attitude
- Ask appropriate questions
- Give genuine answers to any questions you may have
- Identify any specific queries with the contract early enough to discuss any such changes
- Have a good credit history and are likely to follow up payments (note: make sure you use a rent calculator to make sure they are able to pay the rent and other living costs)
The use of a guarantor can be important, especially for student tenants and short-term contracts. If the tenant is unable to pay rent or excessively damages the property, a guarantor ensures that any outstanding payments are made.
Students or seasonal workers tend to seek out accommodation together in order to reduce costs when renting. Make sure your tenancy agreement covers joint living spaces and payment of rent.
Middle aged couples both with professional careers. This is probably the most preferred type of tenant landlords seek to make an agreement with. A couple, both with strong income and looking to settle down are going to be serious with their property choice, so if they seem interested, it’s a good sign.
Different tenants have different needs
Older tenants, for example, might have specific requirements that younger tenants wouldn’t have before.
Things to consider include extra resources such as a handrails and easy access to your property.