The latest Rightmove Rental Price Tracker revealed that every ‘to let’ listing on its portal was receiving an average of 17 enquiries. Such demand can translate into multiple offers and a bidding situation* where the rent that tenants are willing to pay creeps up.
It's natural for landlords to want to generate as much income as possible but there is more to securing the best tenant than opting for the one with the highest offer. Aside from the offer, here are 10 stand-out attributes to look for when choosing a tenant.
1. They can substantiate their income: a steady income that’s enough to cover the rent is the nirvana for landlords. This should be evidenced through bank statements and wage slips or an SA302 tax calculation – the latter for self-employed tenants.
2. They can prove their employment: tenants who can prove they are employed with a signed contract, a work reference and regular bank account payments that match the employer’s trading name should be favoured.
3. They are not living in their overdraft: a landlord will want reassurances that any tenant is financially stable and able to manage their outgoings. If a prospective applicant has a large overdraft, it may indicate they have trouble budgeting.
4. They have a good credit score: tenants applying for credit isn’t an issue. What can be a problem is if they have a history of late or missed repayments on products such as personal loans or credit cards. A good credit score will indicate they make regular payments on time.
5. They have no adverse credit history: some landlords may be willing to overlook one-off instances of poor money management but evidence of CCJs, IVAs, debt relief orders and bankruptcies may indicate financial recklessness.
6. They can pay an amount of rent upfront: not every tenant has a blemish-free credit history but they may have got themselves back on track. An upfront rent payment that covers six months, for example, is a great way to reduce a landlord’s risk.
7. They can provide a guarantor: another favourable aspect is the ability to provide a guarantor who can pass reference checks. This can be helpful if a good prospect is a first-time renter.
8. They can provide references: most landlords would always opt for a tenant who respects the property and its neighbours, and references are a great way to establish how the renter may behave in the future. What past landlords, letting agents and employers have to say will be very indicative.
9. They are not using fraudulent documents: document and ID fraud is a worry, as it can masquerade the real applicant and portray them as someone better. A letting agent will have the knowledge to spot forgeries, such as wage slips, passports and driving licences.
10. They have the right to rent in the UK: tenants must have a legal right to live in the UK and failure to supply the correct Right to Rent documents can end up costing landlords dearly. First-time offences carry a maximum fine of £10,000 per occupier, rising to £20,000 for repeat cases, so authentic paperwork is essential.
The good news is our referencing procedure and wide-ranging checks will ensure all 10 of the attributes listed above are reported on, so the landlord doesn’t have to undertake complex investigations of their own.
If you would like help finding the next tenant for a buy-to-let you own, contact us.
*encouraging tenants to bid on rentals where it results in price increases will be outlawed if the Renters’ Rights Bill becomes an Act
