The most important thing for landlords? It is when good tenants occupy their property. But to know how to find tenants is one thing, but how to find a great tenant is another. And that is not always easily achievable.
There is a lot to think about before signing a tenancy agreement. Will you manage the property through a rental agent? Will you rent the house furnished?
You will not obtain valuable tenants by chance. It is a well-known fact. But, what more can you do to guarantee you get any renters at all? Let’s find out.
What tenants look for in rental properties UK
Landlords must understand what their renters desire. What should landlords be concerned about when it comes to tenant expectations in a buy-to-let property? What turns off tenants? Here are some of the main features renters look for in a rental and what you can do to pique their interest.
It may appear to be an obvious place to start, pun not intended. When renting a home, tenants consider the location because it has a significant impact on their overall experience. The length of a tenant’s commute can be significantly impacted by their proximity to employment, public transit, stores, restaurants, and other services. A tenant’s choice may also be significantly influenced by the general safety and attractiveness of the area.
Renters consider their budget since it can have a significant impact on their financial status and capacity to pay the rent. It’s important to keep in mind that a tenant’s income might be significantly reduced by rent and related expenses like utilities. They may guarantee that they can afford the rental without placing themselves in a tough financial condition by evaluating their budget.
Unless a tenant is looking for inspiration to write their crime novel, security is key for all tenants. This can include factors such as the presence of security cameras, guards, gated entrances, and alarm systems. Having a sense of safety and security in their living environment can greatly impact a tenant’s overall well-being and quality of life.
If you are renting out a block of flats, you can recruit a concierge. This will both increase security and help with deliveries and keep outsiders out of the compound.
Simply said, tenants want to know that they will be living in a well-maintained and managed home. Regular upkeep and repairs of the property and its amenities, such as patching leaks, keeping common spaces clean, and ensuring that equipment and systems are in excellent working condition, are all part of maintenance.
So, you may need to guarantee that maintenance and repairs are completed effectively and on time.
5. Duration of tenancy
Tenants may have different long and short-term objectives and ambitions.
For example, if a renter intends to start a family, they may want to rent a house with a longer-term lease. Similarly, if a renter is looking for a shorter period, they may prefer a home with a flexible arrangement.
For an existing flat, you as a landlord can only control the budget, property maintenance, and the duration of the tenancy. Maybe you will have the ability to control security, but you cannot do anything regarding the location. Unless of course you are yet to purchase a flat on a buy-to-rent basis.
How to verify a good tenant UK
Before we continue, it’s crucial to remember that a decent tenant may not always have a stellar credit history or rental history and that each situation should be assessed on its own merits.
Here are some of the best ways to recognize a good tenant, avoid a bad one, and learn how to tell them apart according to the UK government regulations.
1. If a renter is a citizen of the Commonwealth but lacks the necessary documentation, check with the Home Office. The Home Office is the primary government agency in charge of immigration and passports. Find out if your potential tenant is legally allowed to reside in the UK and has no criminal history.
2. Conduct a credit check to inspect a tenant’s financial history. It will reveal the tenant’s credit history and any unpaid bills, bankruptcies, or defaults. Doing so will give you better insight into the renter’s ability for timely payment.
3. To assure that the renter will take excellent care of the property, it is important to confirm that the rental is the tenant’s primary residence and that they spend most of their time there. Full-time residents are more likely to treat the property well compared to short-term tenants.
4. Ask for references and use a tenant screening service. Recommendations from past landlords, employers, or personal relationships will offer you a sense of the tenant’s rental history and personality. Aside from that, a tenant screening service will provide a detailed report on the tenant’s credit, criminal, and eviction history.
Five Types of good tenants UK
There are benefits of renting to families. The best one is that you won’t have to deal with the time-consuming task of finding and screening a qualified renter. Additionally, families are typically recognized to be more dependable, more likely to maintain the property, have better incomes, and be more responsible renters.
2. Stable couples
This is the most desirable tenancy status for landlords. An established couple, where both are employed means they have two sources of income. Besides, stability is highly sought in these types of tenants since they denote a high sense of commitment. With them being professional workers, there’s minimal possibility of financial ruin.
Student housing is a logical alternative for rental homes in or close to university towns. Students are typically not picky renters, favouring the convenience of living near the university over upscale neighbourhoods.
Today’s students are trustworthy tenants who are no longer seen as high-risk and irresponsible tenants. Student loans pay for their living expenses, and their parents often serve as guarantors.
4. Young professionals
Young professionals are more adept at handling minute problems on their own before approaching the landlord for assistance. Having a tenant that pays on time is great but it helps when they are not annoying. And being wanted by your tenant for every small inconvenience may not board well.
But today’s youth are increasingly independent. They have particular expectations for living standards and modern conveniences, similar to high-income tenants.
PS: When it comes to bigger repairs, it is better that you handle them. Read How To Maximise Profits On Your Rental Property
Now to the next question once you’ve picked your type of tenant.
How to attract high-quality tenants UK
Here are some practical tips to attract quality tenants.
- Offline marketing: A rental agent may assist with advertising or have a list of rent-seekers. You can also publish an ad in your local newspaper to look for tenants in your neighbourhood.
- Personal network: spread the word among your friends, family, colleagues and former tenants. Perhaps post a ‘to let’ sign in front of your property. Surely it takes luck, but it is surprising to see how many good matches happen offline.
- Price the property wisely: Look at similar houses in the neighbourhood to compare the pricing as rates for properties vary. Also, be ready to compromise if a possible renter has an excellent rental history or is ready to sign a longer lease.
- Online marketing: Today, almost 92% of consumers look for a property online. That makes it easier for you to be found by good tenants. Create a website or a social media profile for your rental home and add high-quality images and videos to highlight the greatest qualities. But if you own only one property, you can list your rental on existing portals such as Openrent.
- Sustainable approach: According to recent research, 66% of the UK population would choose a residence with eco-friendly amenities over one without. As a result, an eco-friendly property may be a significant draw for renters.
- Offer flexible agreement and high amenities: Some renters choose a long-term lease and others prefer a month-to-month arrangement. Hence, flexible tenancy attracts more tenants due to its convenience.
Retaining good tenants after finding one
No matter if you manage single or multiple rentals, each tenant probably spends a sizable amount of their day in the rental unit. Remember, your tenants will not renew their lease if they do not feel supported when things go wrong or if they do not trust that you have their best interests at heart.
In the end, your ability to retain tenants depends on how you treat them and how they feel about their experiences. You probably know more about the neighbourhood than them. So be there for them, act in their best interests and make them feel at home.
How can Adjoin help landlords find great tenants and make good money
Adjoin puts tenants and landlords on the same team. How do we do that?
Tenants pay a premium with which they have the right – but are not obligated – to buy the property. Tenants then become potential future buyers. As a result, they have what we call skin in the game.
In other words, they will take care of the property as if it’s their own. Moreover, since they pay the premium they have more at stake if things don’t go well and hence will tend to be more reliable payees.
We think that higher and more reliable payment, as well as keeping the property in top condition definitely makes for excellent tenants.
This is Adjoin’s offer to landlords. Sounds good? Then drop your details here and will get in touch with you ASAP.