Renting out property can be a lucrative business providing you can find the right tenants. But while you’ll never want to miss out on monthly rent payments because your property is sitting empty, you also won’t want the hassle of dealing with troublemakers.
The number of private landlords in the UK was actually dropping before the pandemic hit, and problem tenants can be enough to drive anyone away. Read our tips below on how to attract the right renters and guarantee a safe and steady income.
Establish your target market
The first step is to have a think about what your ideal tenant looks like. Remember it’s illegal to discriminate against people because of their sex, race, religion or sexuality, so focus on things like their profession, lifestyle and character traits instead.
Your property or area might naturally appeal to university graduates or families, for example. Other important considerations might include whether they have pets or smoke.
Research your competition
Just like you would if you were launching a new business, it’s a smart idea to scope out who you’re competing with in the local area. Doing so will help you establish a realistic amount of rent to charge while allowing you to spot ways to make your property more appealing too.
Browse popular rental websites like Rightmove and Zoopla to see what’s available around you. It could also be worth speaking to a few different letting agents.
Tailor your marketing
Next is to put your property in the shop window with attractive and informative marketing. Quality photography is crucial here, so it could be worth paying for professional shots.
Your property listings should be as descriptive as possible, but make sure to highlight the features your ideal tenant might appreciate the most. That could mean shouting about a secure parking space, appliances or local amenities.
Carry out tenant reference checks
Once you get enquiries coming in, using a reputable letting agent for tenant referencing can reduce risk by filtering out undesirable applicants.
The process involves potential tenants submitting key details on topics such as their credit history, previous addresses and employment. Tenant referencing can also unearth feedback from previous landlords or letting agents.
Once all the checks are completed, you can then see a detailed report of each candidate to help guide your final decision.
Prepare for viewings
If all goes to plan, the viewing should be the final step. You’ll want to prepare your property as well as getting yourself ready to meet them and begin building a positive relationship.
Cleanliness is crucial, as a bad first impression could put a potential tenant off for good. Also make sure you know key information like council tax bands, local bin collection dates and energy providers. You could find it useful to probe them on topics such as why they’re moving and how long they plan to rent for too.
Renting out any property inevitably comes with risks. Follow the steps above to improve your chances of finding great tenants.