Finding and keeping good tenants

Advertising Your Property

When advertising a property to rent you have several options, including:

• Property websites

• Newspapers

• Social media

• Local colleges/universities

• Local shop windows

Property websites

Websites such as Rightmove and Zoopla are major sources of information in the property market and are regularly used by prospective tenants to find a home. The main issue is that individual landlords can't create listings on these sites as it has to be done by a professional letting agency. The way around this is to use an online agent like PropHome, which gives you access to these major portals at a fraction of the cost of traditional high street agents.

Newspapers

Even in our digital age, placing an ad in a newspaper can be effective, depending on your market. This is an ideal way to reach older generations or those who don't regularly access the internet.

Social Media

Social media is an increasingly popular way of finding new tenants, which has the advantage of being free, quick and simple to use. Advertising a property can be done through Facebook or Instagram and can be shared by your followers to reach an ever-expanding audience. Through social media, tenants can easily find what's available to them in a specific area or property size. As social media is very visual, it is essential to have great photos of each property listed.

Local colleges/universities

If you are looking for student tenants, it's always best to get in touch with the local college or university as they may have specific requirements before creating a listing. From there they may be able to advertise it directly to their students.

Word of mouth

Advertising in properties that you own is a good way to keep a property tenanted as existing tenants may be able to refer you to their friends or family members. Word of mouth is one of the most popular forms of advertising and you can always offer an incentive for those who help create a new tenancy.

What Features Are Best to List When Advertising?

The first thing that will catch the eye of a tenant is good quality photos of a property. This will increase the level of enquiries.

When listing a property be sure to include:

• Number of bedrooms and whether the property is furnished
• If it has a garden (these remain highly sought after)
• Local amenities and distances
• Local transport in the area
• Appliances included
• Car parking
• Pet policy
• Internet access
• Home office space
• Storage spaces

Tenant Screening

Based on your experience and the types of tenants that you want to attract, you should use comprehensive screening methods.

The best ways to screen tenants include:

• Application forms
• Telephone interviews
• In-person interviews
• Employment references
• Financial verification
• Previous landlord references
• Credit checks
• Right to rent checks

Application form

This is one of the easiest and quickest ways of selecting a tenant with basic questions such as:

• Names and contact details of applicants
• Details of current and former landlord
• Employment status (current and past) and salary
• Number of people that will be living at the property
• Any other details like pets or smokers

These questions are great starters and can provide information on whether the applicant is suitable. For example, if you're advertising a 3-bedroom house and you have an applicant who is a family looking to move in, that seems more suitable than a single person household.

Remember not to discriminate against tenants based on age, gender, sexuality, race, religion, or disability.
 

Telephone interviews

Telephone or video call interviews are a good way of assessing who is a good fit for the property. Being prepared and having a list of questions and taking notes can really help when coming to a decision.
 

In-person interviews

Meeting a prospective tenant at a property is a good way to get a feel for them and let them have a look around. Meeting the tenant is ideally the second stage of the process, after the application form or telephone interview.
 

Using social media

It is possible that you may choose to verify a tenant's suitability by checking what is publicly available through their social media profile. However, it is not advisable to keep checking their social media throughout a tenancy. Checking their LinkedIn profile, for example, can verify their employment status to ensure the information given is correct.
 

Employment references

You should ask a tenant for employer references to ensure you have a reliable, trustworthy tenant. It is also a good idea to ask to see their contract of employment. Double check to make sure the employment letter is genuine and follow it up with a phone call to verify if there is any doubt.
 

Financial circumstances

It is within a landlord's right to ask to see a tenant's payslip so that you can make sure that they have a steady income and will not end up in arrears.
 

Previous landlord references

Asking the tenant for previous landlord details is an important part of the screening process. You can hear for yourself from other landlords about how good the potential tenant is. It may seem unnecessary but it's a smart way of screening that can reveal important information about the tenant's track record.
 

Credit checks

Checking a tenant's credit can give a good indication of the long-term trust you can build. It will point out if the tenant has had any problems including late payments and non-payments. However, you will need the tenant's permission before conducting these checks, even though it is a common procedure.

If you can see that the tenant has had a bad history with credit, don't be afraid to ask why. Don't be too quick to dismiss an applicant because there may be a valid reason, as we all struggle sometimes. If they are upfront about the reasons, they might still be a good honest fit for the property, but to protect yourself you could ask them to either pay a larger deposit or find a guarantor.
 

Right to rent checks

Introduced in 2016, all landlords must carry out checks to verify a tenant's immigration status. The government has provided guidelines to help landlords with this process. In a nutshell, you need to ask a tenant to provide identification documents such as a passport. If this is not done correctly it could result in a fine.
 

Asking the Right Questions
When screening a tenant, make sure to ask the same questions to all applicants to avoid discrimination. This also makes it easier to compare their answers. Important questions to ask include:

• Why are you moving? Be sure to follow up on the tenant's answer.
• What is your occupation?
• Do you smoke or does anyone you live with smoke?
• Who will be sharing the property with you?
• Are you looking for a short term or long-term lease?
• Can you provide references?
• Is there anything else I should know?
• Do you have any questions for me?

How to Choose the Right Tenant

Assess the suitability of the tenant to the property, depending on the size of their household and size of the property, closeness to their workplace, and other factors such as family living nearby. Make a shortlist when choosing the right tenant and then it might just come down to gut feeling once you have actually met them.

Warning Signs of a Problematic Tenant

• Bad credit rating with a history of late or non-payments
• Refusal to provide ID documents
• A criminal record (evaluate on a case-by-case basis)
• Very low income relative to the rent
• Prior evictions (get in touch with previous landlords)
• Willing to pay a lot of rent upfront without good reason (could indicate they're trying to avoid proper checks)

Keeping Good Tenants

Keeping a good relationship with your tenant is crucial to ensure you don't have to go through the process of finding a new one too often.

Good communication

Make sure you have their phone number and email address. You can ask them to not contact you outside working hours unless it is an emergency, such as the boiler breaking or losing their keys.
 

Decorating

It is good practice to decorate a property before renting it out as a fresh coat of paint can improve a home significantly, and it shows that you take care in looking after the property. Even though it is your property, it is actually going to be the tenant's home, meaning that you should give certain clear permissions on what the tenant can or can't do in relation to decorating. For example, putting up pictures using mounting tape rather than screwing into walls. If the tenant wishes to change the colour of a room, make sure they ask permission first with a colour scheme.

Alterations

Major alterations like removing walls should be addressed in your tenancy agreements with clear restrictions.
 

Gardening

If the property has a garden, make sure to establish the ground rules on how to appropriately maintain it, for example keeping the grass short and the garden tidy. On some occasions landlords hire gardeners to do the work as stated in the agreement.
 

Parking

If parking is available, make sure that it's maintained and free from oil leaks and any causes of damage.
 

Subletting

It's very important to always know who is staying at the property. Make sure it is very clear from the start that subletting is not allowed unless specifically agreed in writing.

Building and maintaining a good relationship with quality tenants saves time, money and stress in the long run. PropHome can help you find and manage great tenants with our comprehensive screening and management services.

For more information, call 0345 8686868 or email info@prophome.co.uk.

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