If you are letting out your properties to earn rental income, the success of your venture depends to a large extent on how good the tenants are. You should actively look out for great tenants because they can provide you the desired return on your investment, while bad tenants can kill your business. You can leave the drudgery of marketing your property and finding tenants to a letting agency, however, it is still vital that you know what makes for desirable tenants.
Who’s A Good Tenant?
While getting paid on time is important, there are some other dimensions in good tenants, you should know about. Good tenants will not only respect you but also your property, neighbors, and importantly, themselves. They should also be law-abiding. Ideally, you will want your tenants to be stable and stay in your property for several years. Additionally, a good tenant will be responsive to your phone calls or texts. He will also let you know promptly of any problems with the property, like damp, mold, etc. You will also want a tenant who takes proper care of your property and keeps it clean. Some essential steps in identifying good tenants:
You must have the necessary license and permissions to let out your property and also know the scope of the Equality Act 2010. It lays down the various things you can and cannot do while renting your property, says an Abode Letting Agency rental property consultant. For example, you cannot discriminate on the grounds of race, color, nationality, sex, religion, disability, or the presence of children. It is good to have a well-defined process for application, not deviate from the process for anyone, document the reasons for rejection, and be careful regarding what you say to prospective tenants.
Know Your Ideal Tenant and Market Your Property Accordingly
Think hard about who you want as a tenant. Even if you can’t advertise that you prefer small families, you can list your property in a way that will appeal more to them, like neighborhood safety and proximity to schools. You should also take a hard look at the neighborhood and evaluate it from the eyes of a prospective tenant. It will help you to find points that tenants will appreciate. Studying the advertisements for rental properties in your area can be helpful. Make it a point to describe the property flatteringly but accurately, highlight the advantages of the neighborhood, and use pictures extensively to market your property. According to Forbes, using videos is usually more effective.
At the end of the day, the return on investment is a key component of the experience of renting out your property. If you price it too low, you will lose out on the opportunity, but pricing it too high can mean that it lies vacant for long. If you want a good pool of tenants to choose from, a good policy is to price is a little below the market price. The trick is to find an accurate market price for comparable properties.