Steps to Take to Identify Problem Tenants
Posted : 20/02/2017 | By Amanda Hosking
A landlord’s life can be made either very easy or extremely difficult depending on the type of tenants they acquire. Problem tenants can cause landlords a lot of hassle and stress and the best way to avoid this is to do your research before taking on a tenant.
Problem tenants could lead to:
• Unpaid rent
• Complaints from neighbours
• Damages to your property
• Sub-letting
• Not abiding by the rules
Here are some tips to spot difficult tenants from the offset. Identifying issues before taking on tenants could save you a lot of trouble.
Gain Essential Information
Try to get a clear image of the tenant by asking them questions either on the phone or in person. Ask them who will be living in the property, where they reside at the moment, and why they are moving from the property.
This gives you an idea as to why the tenant is moving and how many people will be living in your property. Ensure to ask any other important questions you may have.
Conduct Detailed Tenant Examinations
Ensure you conduct a detailed check on prospective tenants. Things to ask for include:
• Evidence of earnings (i.e. payslips)
• Bank transactions for the previous three months
• Confirmation of identity (i.e. passport, driving licence, birth certificate)
Also, remember to conduct a credit check on the tenant to get a clear view of their finances and if they can make rent payments.
If you are not happy with any of the evidence you receive then it is best to avoid letting to them.
Ask for Recommendations
References can give you an insight as to how reliable a tenant is. Ask for a reference from either a previous landlord or an employer. They should easily be able provide you with these, so question why if they cannot.
Examine Guarantors
If you require a tenant to provide a guarantor, then make sure you do sufficient checks on them too. This is essential as if the tenant fails to pay the rent the guarantor will be responsible for the payments. Complete the checks mentioned above.
Make your Letting Agent Aware of your Requirements
If you are using a letting agent tell them what kind of tenant you are looking for (e.g. business professional) and determine what checks they will conduct. This way you ensure that your agent is sourcing suitable tenants and doing the appropriate checks.
Consider Facebook and LinkedIn
The important thing here is to avoid getting caught up on a tenant’s profile as this does not always represent who the person is. Use social media such as Facebook and LinkedIn to confirm details including: job role, employer name, contact numbers and email address.
If it Doesn’t Feel Right, it Probably isn’t
Even after you have completed all the checks and met the tenant several times, if you don’t feel comfortable letting out to them, then do not do it. Sometimes it is best to go with your instincts.
We wish you all luck in finding the perfect tenants!