Landlords.. help me pick a tenant?
Discussion
A couple of observations from me having rented properties of all kinds to all kinds over a number of years;
In your situation I would always opt for a family over a single self employed builder/tradesman especially when we are talking about a small family in full time PAYE employment and not Mum, Dad, 4 kids, 2 dogs and a cat etc etc. In my experience the family - if normal/respectable which is obviously the key thing that only you can judge having met them - will look after the property far better than a single male occupant, as someone said above it is likely to to be viewed as a house to the builder but will be treated as a home by the (right) young family.
Re the gardens - they are big but don't look overly time consuming to keep looking tidy which short of landing a tenant who has a genuine interest in gardening as a hobby is the best you can hope for in the medium to long term - despite what promises are made and enthusiasm to keep them looking like Kew is displayed at the start of the tenancy this will erode overtime as general life takes over.
Another point to consider in your position is that with self employed builders come vans, trailers, mixers and often skips and worse which is possibly one of the reasons why your place is attractive to Applicant 1 given the hard standing areas you have around your garage - this is something I would be wary of if like you, i had ambitions of the tenant keeping the outside space looking presentable.
References from previous landlords are all well and good if they come from reputable agencies or private individuals with integrity but if the tenants are a PITA some private landlords will think nothing of giving glowing references to shift a problem they can't solve quite literally on to someone else's doorstep. They are useful but not the be all and end all of the matter and i speak from experience on this subject.
Given the concern you obviously (and rightly given the spec) have for potential damage to the property IMHO the key for you when you settle on a tenant is to consider bumping the deposit up a bit over the £1500 in the RM ad - in my experience tenants who leave properties needing repairs are more often than not those who also accrue rent arrears - if you find yourself in this situation your deposit will quickly disappear on arrears - as they are unlikely to pay the last month if they know the deposit isn't coming back to them - so you are left to fund the repairs or vice versa. Another £500 deposit is neither here nor there to someone reasonable renting at this level who wants the house and who you therefore would want to have it but it will focus the minds of people who may not look after it as if it was their own place etc.
Lastly, i think charging and credit checking 2 people knowing 1 is more than likely going to get nothing more than a footprint on their credit file and a minimum £90 bill is a bit off - i would settle on your first choice put them through and make it clear to number 2 that they will be the first to know in the event of any hiccups, but thats just me
Cheers
ETA - as others have said I wouldn't bother with a gardener either - again its good in theory but not as easy in practice in terms of gaining access and dealing with last minute cancellations / changes in time by the tenant etc
In your situation I would always opt for a family over a single self employed builder/tradesman especially when we are talking about a small family in full time PAYE employment and not Mum, Dad, 4 kids, 2 dogs and a cat etc etc. In my experience the family - if normal/respectable which is obviously the key thing that only you can judge having met them - will look after the property far better than a single male occupant, as someone said above it is likely to to be viewed as a house to the builder but will be treated as a home by the (right) young family.
Re the gardens - they are big but don't look overly time consuming to keep looking tidy which short of landing a tenant who has a genuine interest in gardening as a hobby is the best you can hope for in the medium to long term - despite what promises are made and enthusiasm to keep them looking like Kew is displayed at the start of the tenancy this will erode overtime as general life takes over.
Another point to consider in your position is that with self employed builders come vans, trailers, mixers and often skips and worse which is possibly one of the reasons why your place is attractive to Applicant 1 given the hard standing areas you have around your garage - this is something I would be wary of if like you, i had ambitions of the tenant keeping the outside space looking presentable.
References from previous landlords are all well and good if they come from reputable agencies or private individuals with integrity but if the tenants are a PITA some private landlords will think nothing of giving glowing references to shift a problem they can't solve quite literally on to someone else's doorstep. They are useful but not the be all and end all of the matter and i speak from experience on this subject.
Given the concern you obviously (and rightly given the spec) have for potential damage to the property IMHO the key for you when you settle on a tenant is to consider bumping the deposit up a bit over the £1500 in the RM ad - in my experience tenants who leave properties needing repairs are more often than not those who also accrue rent arrears - if you find yourself in this situation your deposit will quickly disappear on arrears - as they are unlikely to pay the last month if they know the deposit isn't coming back to them - so you are left to fund the repairs or vice versa. Another £500 deposit is neither here nor there to someone reasonable renting at this level who wants the house and who you therefore would want to have it but it will focus the minds of people who may not look after it as if it was their own place etc.
Lastly, i think charging and credit checking 2 people knowing 1 is more than likely going to get nothing more than a footprint on their credit file and a minimum £90 bill is a bit off - i would settle on your first choice put them through and make it clear to number 2 that they will be the first to know in the event of any hiccups, but thats just me
Cheers
ETA - as others have said I wouldn't bother with a gardener either - again its good in theory but not as easy in practice in terms of gaining access and dealing with last minute cancellations / changes in time by the tenant etc
Edited by Jayyy on Tuesday 21st July 22:19
Much appreciated everyone, and Jayyy that's definitely helped focus my mind. Oddly i've been sat here for an hr or so trying to come to some kind of decision, and i'm not normally one to procrastinate quite so much.
Whilst of course it's impossible to predict exactly what the tenants are going to be like, I think your point about the potential for general tools/stuff being brought to the house by the builder is worthwhile, and given the shared driveway/access then a van might even cause issues with the neighbours I guess.
I've just been googling his name/company and not much is coming up to be honest, just an address in southampton, yet he lives near Reading, and no full address I can find anywhere. If it's not easy to find info on google then my suspicions are already raised as if i was self employed i'd be wanting to have a decent online presence.
We had another couple of viewings this evening, and one young couple turn up, no kid on the way, guy been in work for 10yrs in a multinational that's relocating close by, who were happy to pay extra for a gardener to come mow the lawn, and currently rent and pay extra for a cleaner once a week. They also have some extra flexibility in terms of moving in dates which helps as we're still in the process of completing on our new house.
I think i'll give both the couples a ring tomorrow just to check on how they'd respond to a 12 month contract, and if they can stretch to the bigger deposit, and specifically ensure they're aware that garden maintenance will be in the contract terms, and then see how each of them react.
As i'm a first timer at this, we've set aside budget for rent insurance just until we're a bit more knowledgable, but i take the point that a decent deposit closer to 2 months rent is somewhat more likely to be able to help focus the tenants on general upkeep.
I hadn't planned to be so confused as I wasn't expecting anywhere near the level of interest, but it's a good sign that the house is in demand, as it gives me a bit more confidence in that we'll be able to keep high occupancy rates.
Whilst of course it's impossible to predict exactly what the tenants are going to be like, I think your point about the potential for general tools/stuff being brought to the house by the builder is worthwhile, and given the shared driveway/access then a van might even cause issues with the neighbours I guess.
I've just been googling his name/company and not much is coming up to be honest, just an address in southampton, yet he lives near Reading, and no full address I can find anywhere. If it's not easy to find info on google then my suspicions are already raised as if i was self employed i'd be wanting to have a decent online presence.
We had another couple of viewings this evening, and one young couple turn up, no kid on the way, guy been in work for 10yrs in a multinational that's relocating close by, who were happy to pay extra for a gardener to come mow the lawn, and currently rent and pay extra for a cleaner once a week. They also have some extra flexibility in terms of moving in dates which helps as we're still in the process of completing on our new house.
I think i'll give both the couples a ring tomorrow just to check on how they'd respond to a 12 month contract, and if they can stretch to the bigger deposit, and specifically ensure they're aware that garden maintenance will be in the contract terms, and then see how each of them react.
As i'm a first timer at this, we've set aside budget for rent insurance just until we're a bit more knowledgable, but i take the point that a decent deposit closer to 2 months rent is somewhat more likely to be able to help focus the tenants on general upkeep.
I hadn't planned to be so confused as I wasn't expecting anywhere near the level of interest, but it's a good sign that the house is in demand, as it gives me a bit more confidence in that we'll be able to keep high occupancy rates.
MrChips said:
If it's not easy to find info on google then my suspicions are already raised as if i was self employed i'd be wanting to have a decent online presence.
As i'm a first timer at this, we've set aside budget for rent insurance just until we're a bit more knowledgable, but i take the point that a decent deposit closer to 2 months rent is somewhat more likely to be able to help focus the tenants on general upkeep.
I hadn't planned to be so confused as I wasn't expecting anywhere near the level of interest, but it's a good sign that the house is in demand, as it gives me a bit more confidence in that we'll be able to keep high occupancy rates.
First point can be mute - depends what work he does. A self employed bloke who does subbie work for several large firms might not ever advertise. Just because hes self employed doesnt mean he does domestic work. As i'm a first timer at this, we've set aside budget for rent insurance just until we're a bit more knowledgable, but i take the point that a decent deposit closer to 2 months rent is somewhat more likely to be able to help focus the tenants on general upkeep.
I hadn't planned to be so confused as I wasn't expecting anywhere near the level of interest, but it's a good sign that the house is in demand, as it gives me a bit more confidence in that we'll be able to keep high occupancy rates.
I also think you're over thinking this! Massively. You will never know what they will be like, no matter how much research you do. People can be very presentable, but be messy around the house, or they can be OCD cleaners. There simply is no way to know. Go with whoever you think would pay the rent, expect to have to repaint and sort out the garden, and anything else is a bonus really.
I have let out my property's for the last 10 year.
I would go for a small family , couple and one kiddie for example. However, luck of the draw who you get comes in to play regardless of references.
I would not manage the let myself because if it goes pear shape during a tenancy you have back up verbally and documentary.
I would arrange someone to keep the garden tidy, specially if you have a side entrance.
And , receive rental payments monthly. Do not take 6 months up front because it can enhance and effect notice periods for termination of a tenancy, being a benefit for the tenant if you want them out quickly.
I know some of the above is costly but I am not a penny pincher, plus I am still making a profit.
Good luck.
I would go for a small family , couple and one kiddie for example. However, luck of the draw who you get comes in to play regardless of references.
I would not manage the let myself because if it goes pear shape during a tenancy you have back up verbally and documentary.
I would arrange someone to keep the garden tidy, specially if you have a side entrance.
And , receive rental payments monthly. Do not take 6 months up front because it can enhance and effect notice periods for termination of a tenancy, being a benefit for the tenant if you want them out quickly.
I know some of the above is costly but I am not a penny pincher, plus I am still making a profit.
Good luck.
OP - i would go for the young couple. 2x income always better to cover yourself http://www.propertyinvestmentproject.co.uk/blog/th...
I would ask them to pay for the checks, and use these guys: http://www.landlordreferencing.co.uk/
They do a full service check (credit checks, ID check, employment checks, affordability checks, previous landlord references) and are very good - phone them up or do it online. Honestly this comes back very comprehensive and will be about as much info as you can possibly ask for to make a good decision.
They cost £27 per person - i would have both adults on the tenancy and check them both. I don't think £54 between the two of them is unreasonable - they would be paying £120+ each through a high street agent.
Consider taking Rent Guarantee Insurance for about £100 ish per year. Worthwhile peace of mind IMO. And i'm assuming you have informed your mortgage lender and buildings insurance of your intention to let.
Best of luck! I'm sure it will all go just fine.
I would ask them to pay for the checks, and use these guys: http://www.landlordreferencing.co.uk/
They do a full service check (credit checks, ID check, employment checks, affordability checks, previous landlord references) and are very good - phone them up or do it online. Honestly this comes back very comprehensive and will be about as much info as you can possibly ask for to make a good decision.
They cost £27 per person - i would have both adults on the tenancy and check them both. I don't think £54 between the two of them is unreasonable - they would be paying £120+ each through a high street agent.
Consider taking Rent Guarantee Insurance for about £100 ish per year. Worthwhile peace of mind IMO. And i'm assuming you have informed your mortgage lender and buildings insurance of your intention to let.
Best of luck! I'm sure it will all go just fine.
Ok firstly a thanks for the replies, they definitely helped.
Decision made, and we've offered the house to the young couple from yesterday (no sprog on the way). Agreed that the contract will contain some specific garden maintenance terms that'll be a little more prescriptive, but that at the end of the day it'll be down to them to manage. He still said he'll probably get a gardener to do it over the summer which is a good sign.
Credit checks are being done via the online agent (part of their terms), so hopefully all comes back rosy. We'll have rent insurance anyway and just need to work out the other insurance offers that are floating around at the moment to come up with a package we're happy with!
Decision made, and we've offered the house to the young couple from yesterday (no sprog on the way). Agreed that the contract will contain some specific garden maintenance terms that'll be a little more prescriptive, but that at the end of the day it'll be down to them to manage. He still said he'll probably get a gardener to do it over the summer which is a good sign.
Credit checks are being done via the online agent (part of their terms), so hopefully all comes back rosy. We'll have rent insurance anyway and just need to work out the other insurance offers that are floating around at the moment to come up with a package we're happy with!
MrChips said:
Ok firstly a thanks for the replies, they definitely helped.
Decision made, and we've offered the house to the young couple from yesterday (no sprog on the way). Agreed that the contract will contain some specific garden maintenance terms that'll be a little more prescriptive, but that at the end of the day it'll be down to them to manage. He still said he'll probably get a gardener to do it over the summer which is a good sign.
Credit checks are being done via the online agent (part of their terms), so hopefully all comes back rosy. We'll have rent insurance anyway and just need to work out the other insurance offers that are floating around at the moment to come up with a package we're happy with!
Nice one - good luck and fingers crossed that your tenants treat your property well!Decision made, and we've offered the house to the young couple from yesterday (no sprog on the way). Agreed that the contract will contain some specific garden maintenance terms that'll be a little more prescriptive, but that at the end of the day it'll be down to them to manage. He still said he'll probably get a gardener to do it over the summer which is a good sign.
Credit checks are being done via the online agent (part of their terms), so hopefully all comes back rosy. We'll have rent insurance anyway and just need to work out the other insurance offers that are floating around at the moment to come up with a package we're happy with!
When we moved into our rental last year I completely re-landscaped the garden and the owner who rented it out was over the moon! She had already apologised for the state of the garden, and agreed that we could remove a small wall at the end of the lawn, opening it all up. Over a few weekends and many tip runs I cleared the garden, removed the old shed (thank god I had an XM Estate then!), turned and levelled the whole lot, seeded it and SWMBO's mum came and sorted out all the plants.
Was a selling point for her when she sold up 5 months ago! I think the agent did tell the new owners that we had done the work, as they wanted us to stay in as we pay on time, rarely call up apart from asking for previous bodges to be fixed so treat us as a selling point as well!
We do now have a 2nd on the way though, so will need to move out soon to a 3 bed rather than the 2 bed we have now, which is a shame for many reasons tbh.
Was a selling point for her when she sold up 5 months ago! I think the agent did tell the new owners that we had done the work, as they wanted us to stay in as we pay on time, rarely call up apart from asking for previous bodges to be fixed so treat us as a selling point as well!
We do now have a 2nd on the way though, so will need to move out soon to a 3 bed rather than the 2 bed we have now, which is a shame for many reasons tbh.
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