You get the choice to choose from two tenants, who are waiting anxiously for your approval on whether or not you will choose them as your tenants. It could be that one is ready to pay your rent every month for six years, while the other will pay you late and stop paying in the future. Eventually, they will vanish leaving your home with thousands of pounds needed for the repair.
Apart from picking the right tenant, is there anything else in the property business that is important? Often, landlords outsource their tenant referencing to estate agents in Dulwich or specialists who know much about the property market in London. Sure, this is fine just as long as you satisfy yourself that you are digging deep into finding the right tenant and make the deal a stress-free one.
If you are using the help of others, or decide to do it yourself, you will have to know what exactly you need to prevent the problems between you and your tenants. To make sure that you find the best tenants in your area, you have to be aware of a number of pre-emptive steps to take before you finalise the move of the tenants into your property. Along with this, you have to consider some decisions during the tenancy to ensure their stay is problem free and the years or days to come ahead are stress-free for you.
Whether you are an experienced or new landlord, here is an outline of how you can reduce the risks of tenant problems successfully.
Reference All Tenants Who Wish to Rent Your Property
Referencing your tenants will give you a clearer insight about the people interested in renting out your property and it confirms that they are able to pay their rent. A good tenant reference can tell you about their credit history, the background of your tenants and their current employment status (whether they are in a part time or full time work). Finding the best tenant can be a tricky task, but rest assured that when you consult estate agents such as those at Fish Need Water, they can help you get a better idea of the history and background of the tenants. With this information, you will be able to assess the potential and sustainability of the tenants.
Using a professional company is essential when letting out your property. With thorough and fast checks available, you will be able to ensure that you are accepting the most suitable tenants for your property.
A Written Tenant Agreement
A tenancy agreement should always be in writing to give a clear and up-to-date record of the tenancy and its guidelines. When you have a formal contract between you and your tenants, the tenancy agreement helps to set out the legal terms and conditions of your tenancy. It may either be a fixed term or a periodic tenancy. When you have a professional tenancy agreement, it helps to identify the conditions and terms of the agreement. A professional tenancy agreement helps to identify the responsibilities and rights for you and your tenants. A written agreement should clearly display who is responsible for what goes around the property. Note that as the property is law changing all the time, it is important that you continue to use old agreements for the new tenancies. A good tenancy agreement should include:
- The names of the people involved
- When and how the rent needs to be reviewed
- The price of the rent and the method of payment
- Under what circumstances the deposit withholds
- conditions regarding the subletting
- The complete responsibilities of the landlord and tenant
When you have a written, dated and signed agreement, you will protect yourself legally as well as your property. An agreement written properly will leave your tenants in no doubt about their duties and responsibilities when they live in your property. Hence, this reduces the likelihood of you experiencing any problems and being contacted at all times.
Visit Your Property Regularly
As a landlord, you are entitled to carry out regular visits to your property as long as you first give your tenants enough notice given in the agreement. Having regular visits is a great way to build a good relationship with your tenant and prevents any problems before they become serious ones.
Every quarterly, you should carry out visits to prevent long term damage caused by some of the common problems such as damage by children or pets to the garden, mould, or condensation. Damage to rental properties is often caused overtime and when you make visits it can be enough for you to save money later. In addition, visits are a great way to ensure that the tenants are looking after your property well and allow you as a landlord to manage your finances efficiently through future planning and maintenance.