Things To Consider When Finding Tenants For Your Property

Being a landlord, one of the most important parts of your role is finding the right tenants. Having the right people renting your property out can be the difference between the experience being smooth-sailing and it being a headache with hassle after hassle. The wrong ones can lead to stress, damages and financial losses, whereas the right ones can make you a profit and the whole thing that bit more enjoyable.

Whether you’re becoming a landlord for the first time, or if you want to expand your property portfolio, we’ve put together some key things to consider when choosing who you rent out your property to. This should really help with the process as a whole. 

Know your ideal tenant

Before advertising, think about who your property best suits. Is it perhaps young professionals, families, students or retirees? This helps you tailor your listing, set the right price and choose the most suitable applicants. You want to have an idea in your head of who you’re trying to attract and this will make the whole process a lot more straightforward! 

Create a strong and honest listing

Clear property descriptions and professional photos attract quality tenants. Be upfront about everything: room sizes, parking, outdoor space, transport links and any restrictions (such as no pets or no smoking). Setting realistic expectations helps avoid future disputes, meaning you’re all on the same page when it comes to getting your property matched with the right tenants. 

Post it in the right places

Once you’re reading to accept tenants, you need to know where you find them. Make sure you post the listing on all the relevant board and listing sites. It’s worth looking into rental advertising that can help you to find the right tenants for your property and make the whole process a lot more hassle free. 

Set the right price

Research similar properties in your area to price yours competitively. Too high and you’ll struggle to attract interest; too low and you risk losing out financially or attracting the wrong applicants. You want to find the right price that will suit the people who you want to get in as well.

Think about the sort of income person you want and want they can afford. Look at the rental prices of others in your area and price yours around the same as this. If you don’t, people will just go for the other properties that are cheaper and you’ll end up with an empty property that you are still paying the mortgage on.

Carry out thorough referencing

This is arguably the most important part in this whole guide as without thorough referencing you don’t know who you will have living in your home. You need to check things such as their credit history to ensure they don’t have a habit of late payments. You also need to look into their employment and their income, checking how much they earn and that they can afford to make the payments to you each month without struggling.

If they have recently got a new job, check they have a contract in place and that they aren’t just on a temporary role which will leave them unemployed in a couple of months time. You should also ask for previous landlord references, for identification to check they are who they say they are, and for the details of anyone who will also be living with them. For example, ask if they have any pets or children.

Meet the tenant in person

Meeting your tenant in person gives you a chance to build rapport, gauge communication style and get a feel for whether they’d be a good fit for your property. Trust your instincts but stick to fair, legal criteria. You can get a feel for if they are someone you want to be living in your home and if they will take care of it the same way that you would.

Check their affordability

As a rule of thumb, tenants should earn at least 2.5–3 times the monthly rent. If they fall short, consider whether a guarantor or higher deposit (within legal limits) might work as a backup method in incase they can’t pay rent. You can ask for past bank statements and also use their credit score to find out more about how well they will be able to afford your property.

Long for tenants who want to be in long-term

Tenants who plan to stay for 12 months or more reduce turnover and vacancy costs, and make it a much easier process all round when it comes to being a landlord. Ask politely about their future plans to assess whether they’re likely to remain in the property, or consider having a 12 month contract in place to ensure they stay for at least this term.

Trust your judgement while also staying professional 

Always remain objective, follow legal processes and avoid discrimination, this will make things easier in the long and short term. At the same time, pay attention to communication, punctuality and how respectfully applicants treat the property during viewings. These are things you want to make good judgement with and ensure you do have the right fit of people living in your home. 

These are just a few things to consider when you are finding tenants for your property. Remember having someone live in the property that you own is a big deal and you need to make sure you’re making the right decision for you and also for them.

You want people you can trust and that will pay the bills on term. You want long-term tenants who will want to stay in the property for as long as possible, to avoid having to keep going through the same process of vetting and introducing new people. What are some top tips you have for finding the best tenants for your home? Let us know in the comments below, we’d love to hear from you and get inspired!