There’s something more important to Landlords than getting the highest rental value..
As a landlord, when the time comes to find a tenant for your property, achieving the highest rental income per month from the tenants, in order to help you maximise the return on your investment is key.
There’s no denying that being a landlord can be expensive. Whether the boiler breaks or a new piece of legislation comes out, it will inevitably cost money, so it is understandable that most landlords focus on getting the highest possible rent per month to cover their mortgage on the property and all maintenance costs. However, there are some other considerations to take into account.
The most costly part of being a landlord is paying for a property while it is vacant.
Changing tenants every year or every 6 months with vacant periods inbetween is going to be vastly more costly than having a longer term tenant. Even if it means accepting a slightly lower rental figure per month over a much longer term.
The problem is compounded every time you change tenants as you will have to clean the property inbetween tenancies and pay for inventory costs at the start of each new tenancy. In a recent survey, cracks, marks and stains leave the biggest negative impression on prospective tenants during a viewing, with a 76% turn-off rate.
Getting a good rental price is obviously still important, but for any landlord, finding a tenant that stays for the maximum length of time will ensure you get the maximum rental yield over the life of your Buy to Let investment.
THIRD PARTY REFERENCE CHECKS
As a landlord, when you’re selecting a tenant for your property the best advice we can give you is to not necessarily pick a tenant simply because they are able to pay the rent; you need to look at the whole offer, including the background of the tenant and thorough reference checks can help you do this:
Some useful tips to help you assess the quality of the tenant:
- What profession and industry do they work in?
- Are they in permanent full time employment?
- What is the affordability ratio?
- Is their credit history good?
- Are previous landlord references ok?
- How long do they want to stay in the property for?
To help you get all this information, reference checks play an essential role in this process.
Using a qualified and experienced letting agent, gives you reassurance that not only are professional financial checks are made on your potential client, but the right questions and enquiries are made to ascertain the reliability and longevity of the rental agreement