How To Find Good Tenants
If you are looking to make money from buy to let investment, two factors are crucial. In order to achieve capital growth you need to buy good property and to achieve income you need to find good tenants.
Properly vetting tenants and taking the time to choose the right tenants for the right property has been one of the main factors I have concentrated on during my property investment career. Bad tenants have cost me a lot of time and money.
There are many landlord resources out there, and as someone who has made money from investment in property, here are my four top tips to finding good quality tenants.
Word Your Advertisement Well
If you are careful with the wording of your newspaper or internet ad, you may well attract better tenants. I advertise my properties as ‘well cared for’ or ‘immaculate’ as it suggests that I only let great properties and that I expect my tenants to treat them in the same way. If the property has a special feature – in a village location, near a great school etc – then say as much in the advertisement. I find that it means that great tenants looking for specific lifestyle choices will respond, not simply anyone looking for a place to live.
Be Professional
I read a recent survey that found that almost half the tenants questioned ranked the appearance and attitude of the landlord and the landlord’s staff as the most important factor in selecting their present place to live. When I show a property to prospective tenants I always make sure I am smartly dressed, on time, and that the property itself is in good order. First impressions last.
Vet Tenants Carefully
I take great care in examining the tenants I consider for my properties. I think nothing of asking them to provide identification, payslips and other references. I know of landlords who insist on an employer’s reference alongside a reference from their previous landlord or letting agent to confirm good previous conduct. This does put some tenants off, but if they aren’t prepared to confirm what they earn, I don’t want them renting one of my properties.
Look at the Long Term
The main way I have saved and made money from investment in property is by finding those tenants whose intention is to stay in the property for the long haul. Tenants who just want a six month agreement might help you in the short term, but you will incur advertising fees, possible redecoration costs and other expenses when they leave. Finding tenants with permanent jobs who are looking to settle down in a certain area means they are much more likely to stay in the property for a long time, meaning regular, consistent income for the landlord.
