So, you’ve decided on a letting agent (or chosen to manage the process yourself). Now comes the crucial step: finding the ideal tenant for your property.

Marketing & Advertising:

• Letting Agent Advantage: If you’re using a letting agent, they’ll handle marketing your property across various platforms (including online portals like Rightmove) to attract qualified tenants quickly.
• Accurate & Legal Listings: They’ll ensure your listing adheres to the Consumer Protection from Unfair Trading Regulations (2008) – essentially providing an accurate and complete description to avoid misunderstandings. They’ll also advise you on your legal obligations as a landlord.

Identifying Your Ideal Tenant:

• Matching Expectations: By now, you should have a good idea of the type of tenant that best suits your property. Consider factors like:
  • Ideal occupancy (family, couple, flatmates)
  • Pet restrictions (allowed or not)
  • Age preferences (if any)
  • Desired tenant personality traits (a good letting agent can help identify this based on your preferences)

Providing Clear Criteria:

By clearly communicating your ideal tenant profile to your letting agent (or including it in your listing if managing yourself), you can ensure targeted marketing that attracts the right candidates. It’s important to remember that discrimination based on factors like race, gender, or disability is strictly prohibited.

Showcasing Your Property:

• Rightmove & Beyond: While online portals like Rightmove are popular, your goal is to help potential tenants envision themselves living in your property.
• Visual Appeal: Use high-quality photos (around 9) and a clear floorplan to showcase the property’s layout and features. Avoid including photos of fixtures and fittings unless they’re truly remarkable.
• Daylight is Key: Schedule photography sessions for bright daytime hours to capture the property in the best possible light.
• Tenanted Property: If your property is currently occupied, ensure tenants have ample notice to tidy up and remove valuables before photos are taken.

Crafting Compelling Descriptions:

Your letting agent will draft the property description. However, if you have local insights that could entice potential tenants (like nearby amenities, community feel), share them with the agent for inclusion.

Energy Performance Certificate (EPC):

Just like selling a property, you’ll need a valid EPC to legally rent out your property.

Remember: Taking the time to present your property accurately and attractively, along with clearly defining your ideal tenant profile, will significantly increase your chances of finding a reliable and long-term tenant.

So, you’ve got your ideal tenant profile in mind, and your property is looking its best. Now comes the exciting stage: viewings and negotiations!

Streamlined Viewings (Letting Agent Advantage):

• Letting Agent Expertise: If you’re working with a letting agent, they’ll handle viewings and negotiations on your behalf, freeing up your time and ensuring a professional presentation to potential tenants.

Self-Managed Viewings:

• Presentation is Key: Ensure your property is clean, tidy, and welcoming. It should feel homely yet impersonal enough for viewers to envision themselves living there.
• Flexible Scheduling: Be flexible with viewing times to accommodate potential tenants’ schedules. Consider providing a spare key to your letting agent for easier access (if applicable).
• Standing Out from the Crowd: Remember, you’re competing with other rentals. The more accommodating you are, the more likely your property is to be viewed.
• Respectful Tenancy Transitions: If your property is currently occupied, maintain a positive relationship with your tenants to ensure they’re flexible with viewings. Remember, legally, you must give tenants 24 hours’ notice before a viewing.

Showcasing the Local Area (Self-Managed or Using an Agent):

• Local Insights: Highlight the property’s location benefits during viewings. This includes public transportation options (buses, trains, trams), nearby shops, pubs, restaurants, and general community feel.

The Art of Negotiation:

• Market-Driven Rents: Negotiating rent can be tricky. There’s no set formula – the market dictates what tenants are willing to pay. Consider all aspects of an offer, not just the initial price point. A reliable tenant with stable income may be worth a slight rent reduction.
• The Power of the Counter-Offer: If an offer falls below your expectations, a counter-offer is better than a flat rejection. This could involve requesting a higher rent or a longer tenancy agreement.
• Financial Considerations: The offered rent should comfortably cover your expenses with some buffer. Consider current market conditions – are viewings plentiful, or is there a shortage of interested tenants?
• Market Research & Transparency: Seek your letting agent’s insights on the current market trends. Research similar properties in the area – how are they priced, and what amenities do they offer? Be honest when comparing your property.
• Avoiding Void Periods: Consider the offer’s timing relative to the property’s availability. Minimizing void periods is crucial, so a slightly lower rent from a reliable tenant who can move in sooner might be preferable.
• Focus on Finding the Right Fit: Don’t get fixated on “winning” the negotiation. Prioritize finding a responsible, long-term tenant who will take good care of your property.

Remember: Professional presentation, clear communication, and a willingness to find common ground are key to securing a great tenant for your rental property.

As a landlord, it’s important you know how to handle tenant deposits and tenancy agreements correctly.

Understanding Tenancy Agreements:

• Assured Shorthold Tenancy (AST): The most common type of tenancy agreement in the UK, an AST outlines the rights and responsibilities of both you (the landlord) and your tenant. It serves as a legally binding contract that details expectations for both parties.
• Clarity is Key: Clearly outline any rules or restrictions within the tenancy agreement. This document becomes the primary reference point in case of disagreements.
• Negotiation & Agreement: While you provide the initial draft, your tenant has the right to ask questions and potentially negotiate certain terms. Once both parties are satisfied, you’ll each sign a copy of the agreement.

Tenancy Deposit Protection:

• Dispute Resolution: Deposits serve as a security measure for both landlords and tenants in case of any damage or cleaning issues beyond normal wear and tear.
• Deposit Limits: The Tenant Fees Act (England) sets a cap of five weeks’ rent on tenancy deposits.
• Registration & Protection Schemes: By law (England & Wales), tenancy deposits must be registered with a government-approved scheme within 30 days of receipt. These schemes include:
  • Deposit Protection Service (DPS)
  • MyDeposits
  • Tenancy Deposit Scheme (TDS)

Landlord Responsibilities:

• Deposit Certificate: Issue a Tenancy Deposit Protection Certificate to your tenant as proof of registration and to inform them of the chosen scheme.
• Deposit Information: Provide your tenant with clear details about:
  • The chosen deposit protection scheme
  • Timeline for deposit return at tenancy end
  • Potential deductions (if any) from the deposit
  • Dispute resolution process and contact information

Important Note: Failing to register a deposit can result in hefty fines (up to three times the deposit amount) and could impact your rights to repossess the property under Section 21.

Remember: Clear communication, a well-defined tenancy agreement, and proper deposit handling ensure a smooth and professional landlord-tenant relationship.

Ending up with a tenant who doesn’t pay their rent is every landlord’s worst nightmare. Following a few easy steps before you take on a tenant could minimise that risk and save you a lot of time, stress and money in the long run. If you use a lettings agent, they will do all of this for you.

Letting Agent Advantage:

If you’re using a letting agent, they’ll handle the entire referencing process for you.

Getting to Know Your Tenants:

• Meet & Greet: Schedule a phone call or in-person meeting with prospective tenants. Discuss their reasons for moving, desired tenancy length, intended occupants, and occupations. This helps you gauge their suitability for your property.

Reference Checks:

• Permission First: Always obtain a tenant’s consent before requesting references.
• Gathering Information:
  • Proof of Identity & Address: Request utility bills or bank statements verifying their current address.
  • Employment Reference: Seek a recent reference (on company letterhead) verifying their income and employment status.
  • Previous Landlord Reference: Request references from at least one prior landlord, if possible.

Financial Assessment:

• Credit Check (Optional): A credit check can reveal a tenant’s financial history and ability to afford your rent.
• Alternative Option: If you prefer not to run a credit check, requesting the last 3-6 months’ bank statements can provide insights into their financial stability.

Right to Rent Checks (Mandatory):

It’s your legal obligation to conduct Right to Rent checks on all adults (18+) who will reside in your property, regardless of their nationality. This applies to everyone living in the property, even if they aren’t named on the tenancy agreement.

• Document Verification: You’ll need to see original documentation (passport, ID card, driver’s license, educational institution letter, birth certificate) and retain copies for your records. A full list of approved documents is available on the government website.

Post-Tenancy Check-In:

Schedule a visit to the property within the first few weeks of tenancy to:

• Verify tenant occupancy (the same individuals you referenced).
• Ensure the property is being maintained in good condition.

Remember: Give your tenants proper notice before the post-tenancy check-in – don’t make surprise visits.

By following these thorough yet fair practices, you can significantly increase your chances of finding responsible, long-term tenants who will treat your property with respect.

Having found the ideal tenant, whether you’re managing the tenancy yourself or working with a letting agent, here’s what you need to consider to ensure a smooth handover and set the stage for a successful tenancy.

Letting Agent’s Role:

If you’re working with a letting agent, they can handle tenancy agreements, deposit administration, and inventory arrangements, freeing you up to focus on other aspects.

Inventory – The Essential Record (For Self-Managed or Agent-Managed Properties):

A detailed inventory with photographs, created at the start of the tenancy, minimizes potential disputes over property damage. It should list all fixtures, fittings, and freestanding items, along with their condition and location.

• Professional Help: Consider using professional inventory companies for a comprehensive report.
• DIY Option: Alternatively, find a helpful guide online to create your own check-in report.

Crucially: Both you and your tenant must review and agree on the inventory, ensuring it accurately reflects the property’s condition and contents upon tenancy commencement.

Smoke & Carbon Monoxide Alarm Safety (Mandatory):

As a landlord, you’re legally obligated (since October 2015) to ensure smoke alarms and/or carbon monoxide alarms are in proper working order at the tenancy start date.

• Smoke Alarm Requirement: There must be a functioning smoke alarm on every floor with a habitable room.

RLA Website: Find more detailed information on smoke and carbon monoxide alarm regulations on the Residential Landlords Association (RLA) website.

Insurance Considerations:

• Tenant’s Contents: Tenants are responsible for acquiring their own contents insurance.
• Building Insurance: You’re responsible for adequate building insurance coverage.
• Furnished Property: If you’re letting a furnished property, consider additional insurance for the contents. Inform your insurance company about renting out the property, as it may affect your premium.

Presenting Your Property in its Best Light:

• Cleanliness Matters: Ensure the property is clean and tidy to create a welcoming environment for your new tenant. This also establishes the expected standard of care.
• Take Advantage of Vacancy: Use the period between tenancies to address any minor, non-urgent repairs.

Pre-Move-In Checklist:

• Clear Out Old Mail: Remove any mail left behind from previous occupants.
• Key Check: Verify that all property keys function properly.
• Essential Information: Leave your new tenant with practical instructions about the property, including security codes, locations of stopcocks and meters, and emergency contact information.

Open Communication is Key:

By providing clear instructions and ensuring your tenant feels comfortable contacting you with any questions, you’re laying the groundwork for a positive and long-lasting landlord-tenant relationship.