Buy-to-let landlord tactics for finding the best tenants
Buy-to-let investors have never had it so good. Nor have they ever had it so bad. The ratio of privately rented homes is rising to levels not seen for decades. However, increasing numbers of tenants are crossing over from social housing.
I know that I’m using a stereotype here, and, before you shoot me down in flames, I also know that many tenants currently in social housing are perfectly respectable and reasonable people; but the majority wouldn’t make the cut if you were trying to track down top-class tenants. Think about it: do you want your properties tenanted by people relying on housing benefits and hand-outs to make their monthly rent? Or would you prefer to rent to pre-vetted tenants who have steady jobs and above-average incomes?
Here I’ll show you how to make sure you track down the top-class tenants that your buy-to-let properties deserve.
The tenant search is an arduous process
When you begin searching for tenants, you’re going to need to advertise. For most DIY landlords, this means placing a box advert in the local press, and possibly online, too. With a bit of luck, you’ll get a few applicants for tenancy.
No, you’ll need to vet them, to make certain they are who they say they are. You’ll need to check out credit references, speak to their employers, and find out about their previous rental history. Read our article, “Straight facts on tenant vetting process”, for more information.
You’ll want to meet a prospective tenant face-to-face. Even then there’s no guarantee that your tenant is going to be the real package your checks have indicated. You only have to reacquaint yourself with John’s first experience as a buy-to-let landlord to see what can go wrong. His effort at being a DIY landlord ended in disaster, with losses of more than £11,000.
The best tenants pay premium rental income
You’ll find that the best tenants pay premium rental income. You’ll need to be realistic with your rent requests, but when you get a great tenant not only will they treat your property in the right manner, they’ll be more likely to stay longer. That will reduce void periods and increase your income and cash flow.
As your property portfolio grows, you’ll probably find it more difficult to source the best tenants. Your void periods will rise, and you’ll be in more danger of tenants moving on without paying the rent they owe.
The importance of creating a list of potential tenants
One of the benefits of using Ezytrac as your property manager is that we have a steady supply of pre-vetted tenants. While we do advertise properties for rent, we find that most tenants approach us to find a property. That reduces the cost of securing tenants.
After an applicant has asked about properties on our books, we’ll run the necessary credit and background checks. This cuts down the time that our landlord clients have to spend doing the same work. You get to take advantage of what amounts to a ready-made, cherry-picked, top-class tenant. These tenants should treat your home with more respect, pay their rents on time, and stay in your property for longer. Your returns rise, and the hassle of finding top-class tenants falls out of the landlord equation.
Do you need to increase your stream of top-class tenants for your growing property portfolio? How could you benefit from a property manager with a national reach?
Contact us today, either by phone +44 1522 503 717or via our online contact form, and we’ll be happy to discuss your needs and how our list of ready and waiting tenants could benefit your return on investment.
Brett Alegre-Wood MARLA MNAEA