It’s a lesson any landlord will learn pretty quickly. From the moment your tenants move in, you effectively lose certain rights of ownership until such time as the agreement comes to an end and they move out.
A painful lesson
There are times when that very fact may become an all too painful reality if you are unfortunate enough to find yourself lumbered with problem tenants.
From the very outset, therefore, you will be trying to avoid anything like that problem. It means that you’ll need to exercise the best and most effective judgment you can muster when selecting and vetting potential tenants.
From the very word go, you’ll be looking to avoid unintentionally letting people into your property who subsequently prove to be troublesome.
Just in case
Since there’s nothing quite like anticipating trouble before it begins, you need to be fully aware of your legal rights and responsibilities in terms of rental agreements, deposit management and all of your responsibilities and obligations as a landlord.
Having a landlord’s insurance policy in place, like those on offer from providers such as us here at Cover4LetProperty – where cover against malicious damage by tenants is a standard policy inclusion – is a further prudent and common-sense precaution.
Avoiding trouble
We’re not saying that you are necessarily wielding a carrot and the stick, but avoiding trouble takes a healthy dose of give and take – try giving tenants what they want but stick to some basic ground rules before granting any tenancy agreement.
We have written separately about keeping your tenants happy by meeting their most obvious wants. So, let’s consider the rules you might want to follow when vetting applications and deciding who will qualify for a tenancy – they’re rules designed to help you avoid problems in the first place rather than having to find ways to solve them:
Interviews
- these need to be approached seriously – more than the casual chat you have while showing them around;
- instead, set aside half an hour or so and talk about their job, background, attitudes, and prospects – you might be surprised how conversations such as this can help spot trouble further down the line;
References
- aim to take up two to three references – though bear in mind that anyone who has been asked to write a reference can be expected to be supportive, so you may need to read between the lines;
- references from at least two previous landlords will be more objective – and more valuable for that;
- a reference from an employer may be useful but is unlikely to give you more than confirmation of the tenant having a job at least;
Credit checks
- a check with the relevant credit reference agencies is fast and cost-effective – and applicants with a poor credit history may think twice about applying or will at least need to explain why they’ve had difficulties managing their debts;
- ask to see copies of recent utility bills they’ve paid;
- ask for their bank details to confirm they have a current account – though you won’t be able to check the balance unless they agree to your doing so;
- insist on getting sight of at least the two most recent payslips – and check that their monthly take-home pay is roughly three to four times the rent you are seeking;
- ask what credit cards they currently hold;
Personal – Right to Rent
- you have a legal obligation to check that any prospective tenant has an immigration status granting the Right to Rent in the UK;
- check their identity by asking to see a passport or driving licence;
- depending, of course, on their current address, you might even choose to visit them where they currently live.
In a number of these areas, of course, there is scope for manipulation or falsification on the part of the prospective tenant. Rigorously performing the checks, though, remains your biggest opportunity for avoiding serious problems and issues if a tenancy is granted.
