What do look for in a tenant?

[toursound]

If you do your viewings yourself or even accompany your agent on viewings.

What do you look out for in a tenant? Do you use instincts alone to judge their character or are there tell tale warning signs of trouble ahead in your experience?

Starting out in the cut throat world of being a landlord. Going it alone so would just like tips that people who go down this route themselves use.

Thanks in advance.

[Richlist]

I already listed out a number of areas to avoid when selecting tenants in the previous thread.....

Here's broadly MY list.......

TENANT SELECTION CRITERIA

Applications from the following people are not acceptable under any circumstances

• Smokers.

• Pet owners (specifically dogs, cats or reptiles).

• Non English speakers.

• Those with resident children.

• Anyone in receipt of housing benefit or LHA.

• Those wanting Company lettings.

• Any letting that would results in overcrowding (eg parents with children in a 1 bedroom flat).

• Anyone running a business or commercial operation directly from the property.

• Applicants who have long lead times to moving in.

Applications from the following people will depend on circumstances

• Non working tenants…..including part time workers, unemployed, those looking for work, university students with/ without working partner are each considered on their own merits.

• Non resident children…..eg single, divorced, separated parent who looks after a child every other weekend may be OK. Would depend primarily on age of children.

• Lettings for less than 6 months…..normally requires higher rent to cover fixed costs.

• Poor references or no references or don’t qualify for RGI…..may require a home owning guarantor or rent period in advance.

• Age under 25......depends on the person, circumstances, maturity, job etc.

But my agents usually filter out these time wasters interested parties before they get to the viewing stage.

and this may also help:

10 things a landlord needs:

1. A reliable supply of rubber gloves

2. The ability to obliterate any sentimental attachments to the property they let out

3. The constitution of an ox

4. The patience of a saint

5. Enough reserve funds to cover a three month void period if necessary

6. A broad mind

7. A sense of humour

8. A secretarial instinct and a stock of stamped envelopes

9. A basic grasp of human psychology

10 A big plunger (and the ability to use it)

[Melboy]

Sums it all up very nicely.

Next question?

[Dave A]

We've been doing this for about five years now and don't use agents. It has been a steep learning curve and still learning by the day. Our best tenants have by far been divorced single men, they always pay and to date have caused us no problems whatsoever. Our worst have been, in order of pain in the arseness:

1. Youngsters, they still think they are living with mum and dad and want you to come round 'cause there's a spider in the room. Don't be fooled by how sharp they are and that they've got a good job (I was). They also can't afford to have the heat on and open any windows so you end up with condensation problems.

2. Pet owners, this applies even to those with house cats as again they won't open the windows. I have a dog and like most animals, but will never again accept tenants with anything larger than a fish.

3. Young married couples, they will eventually end up multiplying and you can end up with continual changeovers as the house is not big enough or the spare bedroom isn't suitable for a nursery.

Overall we've used a lot of gut instinct, and never rushed into accepting a tenant. We've followed up references, taken garuntors and made sure we know what we're doing wtih deposits. Sob stories are always hard to take, and someone pushing a wad of fifties into your hand can also be tempting but treat it as a business decision. You will also hear "I'll take it straight away", NEVER go along with this, always give a cooling off period of at least 24 hours. If they still want it, go through the proper procedures.

Dave

[Melboy]

Our best tenants have by far been divorced single men, they always pay and to date have caused us no problems whatsoever.

I would agree with that statement. I have 2 single long term Men both aged over 40 who have given me not one moment of bother in 8 years.

If either should ever leave this would be my target market again for tenants.

[Richlist]

Thats an interesting couple of posts.

It got me thinking about the types of problem tenants that I've had over the years and now try to avoid.....that are not on my genereic lists. It just goes to show how complex selecting suitable tenants can be and for the new, inexperienced landlord how easy it is to pick a 'wrong un'.

I would echo everything the previous two have posted and add the following:-

* Same sex couples....in my experience it often ends in tears before the end of the fixed term of the AST.

* People from what I would describe as 'Third World' countries eg Indian sub continent & Africa. I've had tenants who have never had a fridge or a proper bathroom or kitchen before. They are not familiar with vacuum cleaners, don't understand condensation & the need to ventillate rooms. They also hate the British winter.....many never having experienced heaters of any kind. My experience is they prefer to sleep on the floor rather than in beds.

* I use extra caution with any applications from people outside Europe or North America.

* Anyone who requests anything out of my comfort zone/ my normal way of operating. It doesn't matter what the reason......its likely to make extra work for me and more chance of it going wrong. I stick to what I know.

* Shift Workers.......not an obvious group to avoid BUT when they work all night & sleep all day you try getting hold of them on the phone....its virtually impossible! Its OK if you want to call them at 4.30 am when they get home from work or in the small window of opportunity between when they get out of bed & leave for work in the afternoon, otherwise you'll never get hold of them......best avoid. If you need to carry out repairs on the property there are more problems with shift workers cos you need to work the nightshift also to get the work done......obviously not ideal.

[toursound]

Hey Guys

Many thanks for the advice. Sorry for the late replies been mad busy with work.

I already listed out a number of areas to avoid when selecting tenants in the previous thread.....

Here's broadly MY list.......

TENANT SELECTION CRITERIA

Applications from the following people are not acceptable under any circumstances

• Smokers.

• Pet owners (specifically dogs, cats or reptiles).

• Non English speakers.

• Those with resident children.

• Anyone in receipt of housing benefit or LHA.

• Those wanting Company lettings.

• Any letting that would results in overcrowding (eg parents with children in a 1 bedroom flat).

• Anyone running a business or commercial operation directly from the property.

• Applicants who have long lead times to moving in.

Applications from the following people will depend on circumstances

• Non working tenants…..including part time workers, unemployed, those looking for work, university students with/ without working partner are each considered on their own merits.

• Non resident children…..eg single, divorced, separated parent who looks after a child every other weekend may be OK. Would depend primarily on age of children.

• Lettings for less than 6 months…..normally requires higher rent to cover fixed costs.

• Poor references or no references or don’t qualify for RGI…..may require a home owning guarantor or rent period in advance.

• Age under 25......depends on the person, circumstances, maturity, job etc.

But my agents usually filter out these time wasters interested parties before they get to the viewing stage.

and this may also help:

10 things a landlord needs:

1. A reliable supply of rubber gloves

2. The ability to obliterate any sentimental attachments to the property they let out

3. The constitution of an ox

4. The patience of a saint

5. Enough reserve funds to cover a three month void period if necessary

6. A broad mind

7. A sense of humour

8. A secretarial instinct and a stock of stamped envelopes

9. A basic grasp of human psychology

10 A big plunger (and the ability to use it)

We've been doing this for about five years now and don't use agents. It has been a steep learning curve and still learning by the day. Our best tenants have by far been divorced single men, they always pay and to date have caused us no problems whatsoever. Our worst have been, in order of pain in the arseness:

1. Youngsters, they still think they are living with mum and dad and want you to come round 'cause there's a spider in the room. Don't be fooled by how sharp they are and that they've got a good job (I was). They also can't afford to have the heat on and open any windows so you end up with condensation problems.

2. Pet owners, this applies even to those with house cats as again they won't open the windows. I have a dog and like most animals, but will never again accept tenants with anything larger than a fish.

3. Young married couples, they will eventually end up multiplying and you can end up with continual changeovers as the house is not big enough or the spare bedroom isn't suitable for a nursery.

Overall we've used a lot of gut instinct, and never rushed into accepting a tenant. We've followed up references, taken garuntors and made sure we know what we're doing wtih deposits. Sob stories are always hard to take, and someone pushing a wad of fifties into your hand can also be tempting but treat it as a business decision. You will also hear "I'll take it straight away", NEVER go along with this, always give a cooling off period of at least 24 hours. If they still want it, go through the proper procedures.

Dave

Thats an interesting couple of posts.

It got me thinking about the types of problem tenants that I've had over the years and now try to avoid.....that are not on my genereic lists. It just goes to show how complex selecting suitable tenants can be and for the new, inexperienced landlord how easy it is to pick a 'wrong un'.

I would echo everything the previous two have posted and add the following:-

* Same sex couples....in my experience it often ends in tears before the end of the fixed term of the AST.

* People from what I would describe as 'Third World' countries eg Indian sub continent & Africa. I've had tenants who have never had a fridge or a proper bathroom or kitchen before. They are not familiar with vacuum cleaners, don't understand condensation & the need to ventillate rooms. They also hate the British winter.....many never having experienced heaters of any kind. My experience is they prefer to sleep on the floor rather than in beds.

* I use extra caution with any applications from people outside Europe or North America.

* Anyone who requests anything out of my comfort zone/ my normal way of operating. It doesn't matter what the reason......its likely to make extra work for me and more chance of it going wrong. I stick to what I know.

* Shift Workers.......not an obvious group to avoid BUT when they work all night & sleep all day you try getting hold of them on the phone....its virtually impossible! Its OK if you want to call them at 4.30 am when they get home from work or in the small window of opportunity between when they get out of bed & leave for work in the afternoon, otherwise you'll never get hold of them......best avoid. If you need to carry out repairs on the property there are more problems with shift workers cos you need to work the nightshift also to get the work done......obviously not ideal.

Thanks for the time guys, that list is great info and very comprehensive. All taken on board.

A question though, a property i viewed yesterday is in China Town in the centre of manchester. Great price and a repossession. Obviously being in china town theres lots of Chinese students etc. Would you take cash up front if they are form overseas and don't have a guarantor? I obviously wouldn't accept a guarantor from overseas.

Again thanks in advance.

[Grampa]

Cash up front in china town. mmmmm

I smell cannabis farm.

.

[Richlist]

Would you take cash up front if they are form overseas and don't have a guarantor?

No.

Here's a few extra groups that I avoid.....not on any of my previous lists.

At the risk of offending some here it is:

* Anyone with disabilities.

* Anyone grossly overweight & best described as obese.

* Applicants with really dirty jobs.

[Melboy]

A question though, a property i viewed yesterday is in China Town in the centre of manchester. Great price and a repossession. Obviously being in china town theres lots of Chinese students etc. Would you take cash up front if they are form overseas and don't have a guarantor? I obviously wouldn't accept a guarantor from overseas.

Sorry Toursound when I read that I have to tell you I let out a laugh.

I'll give you my advice for what it's worth and the very best of luck to you if you do proceed down this route.

"Don't do it" !

[Dave A]

"and someone pushing a wad of fifties into your hand can also be tempting but treat it as a business decision."

Remember this comment?

Dave

[toursound]

Cash up front in china town. mmmmm

I smell cannabis farm.

.

Ha i know what your saying. But it is the done thing with overseas students in manchester. But i know what your saying its frawt with dangers. And possibilities like the one above are surely higher with this type of let.

Would you take cash up front if they are form overseas and don't have a guarantor?

No.

Here's a few extra groups that I avoid.....not on any of my previous lists.

At the risk of offending some here it is:

* Anyone with disabilities.

* Anyone grossly overweight & best described as obese.

* Applicants with really dirty jobs.

Interesting. Two of them make immediate sense to me. But can i ask why you wouldn't take obese people? From a business point of view?

Sorry Toursound when I read that I have to tell you I let out a laugh.

I'll give you my advice for what it's worth and the very best of luck to you if you do proceed down this route.

"Don't do it" !

Advice taken on board. And i wont ha. The residing sentiment is that its not the best idea.

[Richlist]

Interesting. Two of them make immediate sense to me. But can i ask why you wouldn't take obese people? From a business point of view?

Many seriously overweight people aren't capable of doing housework. Lots of areas get little or no attention and the landlord would be left to sort it out after they leave. Arranging for professionalls to clean up & making a deduction from their deposit doesn''t compensate for the time & effort needed to arrange the work and the potential delays to any relet.

I prefer to avoid the problem in the first place.

[bdh198]

I've recently been considering the risks of having a tenant paying upfront for six months. However, it is unusual and you will want to be very careful.

The first thing you will want to know is why they are paying upfront and not in instalments. If there's no good reason then there's something suspicious. Foreign students without a guarantor or reliable income could be a legitimate reason, but a student let without a guarantor is a big risk in itself! If you do go ahead in these circumstances make sure you take a bigger deposit.

You will also need to make sure the tenancy agreement is carefully worded to keep the protections of a monthly paid AST agreement, but avoiding the rent being treated as a deposit. This is one area where it might actually be beneficial to have the services of an experienced agent if you are unfamiliar with tenancy agreements. If renting to foreign students with upfront payments is a common way to let property in that part of Manchester then there are likely to be experienced agents who will know a few tricks to keep you safe. They may also know reputable avenues to source legitimate tenants.

You will also need to carry out more thorough checks on who you're letting to. Regular inspections of the property will be essential to avoid situations like this: http://www.thisishullandeastriding.co.uk/Couple-s-shock-rented-house-used-cannabis-factory/story-18755137-detail/story.html#axzz2aRGNdVPW

Remember, your insurance company may very well avoid paying out if you haven't checked and double checked that the tenants are legitimate and acting lawfully. You must insist on regular inspection visits, and it will be worth speaking to neighbours, giving them your details and asking them to contact you if they are concerned or suspicious. If an tenant is doing something illegal, tell the police - it's the quickest way to get them out of the property in those circumstances!