If you are at the stage where your rental property is ready to go onto the market, the next important step is finding the right tenants to live there. If this is your first time being a landlord, or you have had a bad experience in the past, it will help to get some advice along the way.
Working with a professional estate agent like Hastings International ensures all the right checks and balances are carried out before the tenant can move in. Read on to find out how we can help you secure the right tenant for your property.
Right to rent
Before starting to look at the financial stability of the prospective tenant, you have to ensure they have the legal right to rent in the UK. We request to see the original copies of photo ID, such as passports or driver licenses, to guarantee applicants are valid UK residents.
In order to rent, the tenant must have a stable income to prove they can pay without any issues. The general rule we apply is that their yearly income must be 30x the rent. For example, if the monthly rent is £950 a month, their yearly salary must be at least £28,500.
The tenant’s income should be enough to cover the rent and allow them to live comfortably. Self-employed people must have proof of income provided by an accountant, or via tax returns or bank statements.
We use a professional credit-referencing agency to check the tenant’s financial status, previous rental payment history, land registry checks (if they own a home) and enhanced credit checks to view their credit score. If a guarantor is required, they can also be thoroughly checked using this process.
For yearly rents under £50,000 a year, a maximum deposit of six weeks can be requested, along with the first month’s rent upfront. This also demonstrates the tenant is financially viable and offers financial protection for the landlord against any dilapidations and potential loss of rent during the tenancy.
A lot of issues between landlords and tenants can be put down to a lack of communication. If a tenant has poor communication during the early stage of enquiry, this may be early warning signs of potential problems further down the line. A good tenant will communicate clearly with you about their tenancy and any issues with the property. Clear communication also includes access to the property during the tenancy.
No pets allowed
Tenants wanting to move in without any pets are less likely to cause damage to the property or create unwanted noise for neighbours. While most tenancies include a clause stating a tenant can ask the landlord to let a pet live with them, it often depends on the emotional attachment you have to the property in the first place.
Timely rent payments are a fundamental requirement of any tenancy. As a Landlord, you do not want to be in a position of chasing up late payments. A good way to find out if a tenant will pay rent on time is to ask for landlord references. You can ask the prospective tenant’s previous landlords if they paid their rent on time, as well as any other bills or costs associated with the property. This will help you find out whether the tenant is reliable in paying rent on time.
Renting a property in London
For more information on renting your property in London, including Hasting International Lettings services, please contact our Lettings team on 020 7378 9000.