How to pick the right tenant when you are inundated with applications
If you are advertising a property for rent right now, you will no doubt be trying to sort through a truckload of applications - read this article to learn how to pick the gems and ensure a wonderful experience for you and your new tenants.
Just a few years ago, Landlords would be stressed out and worried if a tenant gave them notice to leave. You were sitting there happy as a clam with your tenants living in your property, paying their rent and causing you no trouble at all. Until you get a text or phone call from your tenant to tell you they want to move out.
Suddenly, you're thrust into the world of re-marketing to try and find a new tenant, viewings, references and contracts, all coming out of the blue. And there is no way of guaranteeing you'll find a new tenant as good as the last, facing the prospect of an empty property costing you money instead of bringing it in.
You might even have to consider if you have the available cash in reserves to pay for the mortgage and council tax whilst you search for a new tenant - all of the profits from that property for the year can be swallowed up in just a few short months. Having a property vacant for any prolonged time is costly and something landlords try to avoid wherever possible.
Much of the advice around marketing a property for rent has been about making your property appealing to tenants and pricing accurately for many years. But this seems largely irrelevant now when the market is filled with potential tenants keen to rent a property.
The market has gone crazy, with rent prices going through the roof and potential tenants practically fighting over every available property. Letting agents have to cap the number of viewings they can conduct because there are so many requests, and there can be only one successful tenant for each property.
However, as with many things, eliminating one problem simply uncovers another. Whilst you can be confident you'll find a new tenant quickly, you may struggle to select a suitable one from the list of potential tenants who want to apply for your property.
So, if you're inundated with potential tenants, follow these tips to make sure you choose the right one for you and your property:
Affordability - perhaps a little obvious, but in desperate times, tenants will apply for any property that suits them even if it is a touch out of their price range, which is quite likely in a time of increasing rents. However, if the rent turns out to be a stretch too far, you will end up with missing rent, and the tenants will end up in arrears, which is a stressful and unfortunate situation for all involved. Affordability is one of the first things that you should consider.
Complete forms - on the first scan through the options, consider any application forms with gaps, missing employment information or credit confessions. If there are gaps, you need to know more; this is where your questions should begin. Sadly, if the tenant is trying to hide something from you, this starts your landlord/tenant relationship from a dishonest position and should be a red flag. Of course, that is not to say that this applicant should be discounted entirely, but you should ask them to complete the missing information before considering them.
History - we all have a past, which comes under tough scrutiny when applying for a property to rent. Consider the applicant's previous addresses; have they moved every six months? This is probably a sign that you will have to find a new tenant again soon. Fine if you're looking for only a six-month tenant, but it would raise questions if you would prefer a longer-term option. Likewise, consider the previous landlords and their references, as this should give you vital information about the tenants and how they will settle into your property.
Don't be swayed by a big salary - yes, it's important that the tenant can afford the rent, and landlords will often choose the tenant with the highest salary, assuming they'll be the ones most likely to pay. Sadly, this is not always the case, and your perfect tenant could be a single parent looking for stability for their children, not necessarily a highly-paid individual.
Income is not the main deciding factor; it's important to consider the property and potential tenants individually and match them together. It's unlikely, for example, that a family with children will settle in an executive apartment on the 5th floor with no outside space. Think carefully about the property and then match the tenant to it. There will always be compromises, and there'll never be a perfect answer, but if you take time at this stage, you could be giving a home to a very grateful tenant who stays for a long time and looks after your property.
If you have just received your tenant's notice or are considering renting out, contact our team of property rental experts, who are highly experienced at dealing with high volumes of applications and can steer you in the right direction.