Getting good tenants in your property can mean the difference between a satisfying business and a very unhappy one. By ‘good’ we mean tenants that will pay on time and in full, they look after your home and follow the rules set out in the contract. It’s therefore important to make sure that you determine whether your prospective tenants are good ones before you hand the keys over.
So how do you go about making sure that you’re letting to good tenants?
A Credit Check
A credit check will flag whether your prospective tenants have had any problems paying bills in the past. You will need permission from the tenant as it is not a legal requirement.
If a tenant has bad credit, don’t throw them out automatically – it doesn’t necessarily mean that they will be bad at paying you. You have the options of charging a larger deposit or getting the tenant to get a guarantor in place.
The Right to Rent
As of February 2016, you will be obligated to make sure that your tenants have the right to rent. You can do this by asking to see a UK or EU passport, and you’ll have to check the validity in the presence of the potential tenant, and then make a clear copy. You can find more information on this on the Directgov website here.
Ask for contact details of the prospective tenants from the last three years, along with addresses and dates of everywhere they’ve lived in this time. This way, you can look at how long they’ve spent at their properties and how good a tenant they are.
Proof of Income
Whether that’s employment, self-employment or through benefits, getting prospective tenants to prove that they have income will help you feel safe in the knowledge that they can pay the rent.
How These Affect Your Decision
These four things combined should ensure that the tenant you let to is trustworthy, and will pay their rent and bills on time. Some things shouldn’t be taken too seriously, however. Things such as bad credit don’t necessarily mean that they will be a bad tenant, especially if they have proof of income. Likewise, a bad reference from one previous landlord may not be truly reflective of the person.
Find out about how the Rentr App can help you with tenant referencing by heading here.