The quality of your tenants can make or break your property investment. Here's how to attract and retain the best tenants for your property.
Good tenants pay on time, look after your property and stay for years. Bad tenants can cost you thousands in rent arrears, damage and legal fees. The tenant selection process is arguably the most important decision you make as a landlord.
Marketing to attract quality tenants
The quality of your listing determines the quality of applicants it attracts. Professional photographs taken in good natural light make a dramatic difference to the response your property generates. A clear, honest listing description that highlights key features — transport links, schools, parking, garden — attracts tenants who specifically want what your property offers.
Pricing accurately is essential. Overpriced properties attract desperate applicants who may have been rejected elsewhere. Competitively-priced properties attract more applicants, giving you greater choice.
Referencing thoroughly
A comprehensive referencing check should include credit history, employment and income verification (tenants should earn 2.5-3x the annual rent), previous landlord references and identity verification. Don't be tempted to skip any element of referencing, however strong a tenant appears in person.
For employed tenants, request 3 months of payslips and confirm employment with the employer directly. For self-employed tenants, request 2 years of tax returns or accountant references.
Protecting yourself with a good tenancy agreement
Use a professionally-drafted tenancy agreement that clearly sets out all obligations and is compliant with current legislation. An AST (Assured Shorthold Tenancy) is the standard form for most residential lettings.
Keeping good tenants
Once you find good tenants, look after them. Respond to maintenance issues promptly, conduct annual rent reviews that are fair and reflect local market rates, and treat your tenants with respect. Long-term tenants dramatically reduce your management costs and protect against void periods.
Alternatively, our portfolio management service handles all of this for you, finding and retaining high-quality tenants on your behalf.