Avoiding Tenant Problems
Referencing a Tenant
Thorough referencing of the tenant is the best protection you have against future problems. Your agent should ask the prospective tenant to fill out a comprehensive application form and check the accuracy of every answer. In particular they should take up:
- Credit references - an on-line search with a credit agency will show whether the tenant is credit worthy and whether they have any county court judgements for debt.
- Employment references - a reference from their employer will help to confirm that the tenant is in secure employment and can afford the rent.
- Personal references - a reference from, for example, a previous landlord will help to reassure you that the tenant will respect the property and leave it in good condition.
Many lettings agents contract out the referencing process to specialist companies. Many firms now also offer an insurance backed warranty that covers the landlord against losses incurred in the event that the tenant defaults on the rent, causes damage to the property or fails to leave at the end of the tenancy period. Such schemes are well worth considering.
Checking in the Tenant
Most agents ask for a month's rent as a deposit to cover the cost of minor damage. However, in order to avoid future disputes it is important to create a detailed record of the condition of the property at the start of the tenancy. The easiest way to do this is to create a photographic record of the condition of each room.
If the property is to be let on a furnished or part furnished basis you will need to prepare a detailed inventory listing every item in the property down to the last teaspoon. Most lettings agents will do this for you although most charge a separate fee to prepare an inventory.
Many experienced landlords try to meet each of their new tenants at the start of the agreement. Their theory is that people will take better care of a property if they know the owner. My experience is that there is a lot of truth in this and if possible you should try to meet all your tenants at the start of their tenancy.
Avoiding Problems
If you've appointed an agent on a full management basis they should visit the property every three months or so to check that it is being properly cared for. In between times a useful safeguard is to walk past the property yourself to check that everything is as it should be. It would not be appropriate for you to go inside the property but a quick look from the outside can do a lot to reassure you that the property is being properly cared for. If you have any doubts ring your agent. Don't try and deal with the tenant yourself.
