Getting the right tenant in your property is directly correlated to the success you have with your property portfolio, and how much profit you are able to earn from your asset.
In this article are our three biggest tips to focus on when letting your property so everything goes smoothly and you don't have to worry about who will let it from you or if you will be paid on time.
We asked our local letting agents for their best advice for landlords when letting and their property successfully, and this is what we found came out on top:
- Get a great agent to look after your property for you & manage the tenancy
- Make sure to do your research on the rental market local to you & get the monthly rent spot on
- Vet your tenant thoroughly so you know they are reliable and will stay long-term
Let's get into these steps and what they mean for your property and tenant search!
Step 1: Get a great agent to look after your property
Not all letting agents are made equal. If you've ever had a bad experience with a managing agent, you'll know firsthand how time-consuming it can be, how much money it can cost you and just how frustrating it is overall.
What you're looking for in an agent is someone who is experienced and understands the local market well, so they know what type of tenant your property will attract and can find them for you easily. Another thing to look out for is their reviews on places like Google & Trustpilot, and what landlords and tenants alike are saying about them.
You want to look at how they are received by landlords as this is a clear indicator of what your experience will be like with them. You also want to check what tenants say because if they often have a bad experience with the agent managing your property, their overall time spent in your property will be negative and they will be more likely to leave at the end of their term and not renew, even if they like the property and the area.
With a letting agent, it comes down to who you will feel will save you the most time and hassle with letting and managing your property, and who you feel is experienced and knowledgeable enough to handle any issues that may arise during a tenancy swiftly and effectively so you & your tenant don't have to worry about how to fix it.
Step 2: Researching the local rental market
Take a look on Rightmove for properties to let in the same area as your property that are the same type of home e.g. terraced house, 2 bed apartment etc. You'll often find that the ones which are left on the portals the longest without being let are the ones that are either overpriced, have poor marketing and photography, or both.
Finding a great agent has a lot to do with the quality of the marketing and photography, and so does the pricing. However landlords often overprice their properties unknowingly as they want to get the maximum return, but haven't taken a close look at what the market is doing. Your property is competing with the others listed in the area for the best tenants, so you need to price it competitively for the market you are in.
In your Rightmove search make sure you include properties that have been let, so you can see the prices and roads those properties were on, and also look at the date the property was first listed so you know how long it took to get a tenant. Make a note of the rents, the time on the market and the type of property and road name, so you can begin to make an accurate judgement of what monthly rent ensures you let your property the fastest.
While you don't always want to let your property to the first person that comes along, those that have let in the fastest time often had the most tenants apply to live there. You certainly don't want tenants avoiding your property because it is £100's above the rest of them, leaving it to sit on the market without a tenant and costing you important rental income the longer it sits unnocupied.
Step 3: Reference your tenant thoroughly
Now for the final part - getting a good tenant! The last thing you want is to find out halfway into a tenancy that your tenant can't keep up with their rent payments, or begins to stop paying them without an explanation, or doesn't look after your property and show respect for the accommodation and you as the landlord. All of these things will cost you money, cause you stress and can take a long time going through the court systems to get the tenant out of the property or be reimbursed for the money that they owe due to arrears or damage.
When referencing tenants, it's good to get a reference from an employer so you can confirm their salary and job position, a guarantor who says they are trustworthy and trusts they will pay their rent when it is due, a credit report on the tenant so you know of how reliable they are with payments, and perhaps even a companies house search if they are self-employed.
We take referencing really seriously, and it's the reason why we have such a low number of arrears across all of the properties we are responsible for across the UK. We reference tenants based on 200 different data points, and as far as we know, that is the most thorough referencing process out there right now so if you want to find your perfect tenant, you know who to call!
If you're looking to let your property soon and would like to know more about how to get the best tenant and a great rental figure every month whilst saving you time & money managing & letting your property yourself, click below to book in a valuation with one of our expert local agents in your area.