Choosing the right tenant is possibly one of the most important things that a landlord has to do. In many ways it’s like the beginning of a business relationship. Not only is it a pleasure to interact with a trouble-free tenant who abides by the mutual agreed rules, it also allows you to focus on other aspects of your business.
There are a few things you could do to make sure that you pick the right tenant from the applicants…
Verify background: In today’s uncertain times, it is important that you check the applicant’s credentials and background. Also ensure that you apply this to all applicants equally, to avoid accusations of discrimination. Ask the applicant for his previous landlord’s contact details, and make sure you check the reference out. Also ask for the last three months bank statements. This will tell you exactly what the tenant’s cash flow situation is like.
Use your tenancy agreement: Some tenants could ask if they could use their agreement instead of yours. It is better to refuse, since the tenant’s agreement is always likely to be more favourable to him rather than for you.
Walk through the agreement: Make sure that the applicant completely understands the tenancy agreement before he/she signs it. It also helps to make it clear to the tenant that you intend to follow the agreement closely, including for example late payment charges, to avoid unpleasant confrontations later on.
Trust intuition: Never underestimate the power of intuition. If, in spite of the tenant checking out okay, you still remain uncomfortable, it is best to walk away. In this case, it usually pays to play safe.
