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First-time landlord (flat) here. It scares the underwear out of me when I see many people posting here saying tenants are not paying rents and having to go through the terrible eviction process.
I am letting my flat out using a reputable local agent, but what steps should I take to avoid having to deal with any non-paying and troublesome tenants? I believe all those troublesome tenants passed the referencing step?
Thanks.
Most of the really effective solutions aren’t the sort you can write down but using an agent isn’t the best option as they really only care about getting someone in for their fee.
Use OpenRent. Do viewings yourself and if you don’t like the person, or have a reservation, do t let to them.
You’re likely to get a lot of applications so it actually becomes more difficult to tell good tenants that someone else has got it.
Remember that when it comes to evictions, councils will advise tenants who need their support to stay put. A higher proportion of non paying tenants are benefit claimants. Financial viability and credit referencing are valid ways to assess so whilst I’m not saying don’t rent to benefit claimants, you need to assess the risk of doing so.
Stop using your agent, would be my advice. They aren’t on your side. Their only focus is to get a tenant in as quick as possible. When it all goes wrong, you won’t see your agent for dust, regardless of the sales pitch promises. I advertise my rentals on all the portals, with only an email address for responses, NO telephone number. I then send the enquiring prospective tenants a list of fairly easy, almost innocuous questions. Such as(in no particular order): can you afford the first months rent and deposit. Tell me about yourselves. Why do you wish to rent my house. You will be amazed at the amount of massive red flags this turns up, where the prospective tenants think their answer is a positive. I had one person say that they couldn’t afford the rent, but if I would let them move in, they would then advertise on spare rooms.com for three lodgers, which would cover his rent to me. Another, turned into an absolute keyboard warrior for my slight delay in replying to her initial responses.
The beauty of this way of working, is that it saves you a s***load of time. Also if you try phoning them, or meeting them in person, some people are very good at verbal communication (especially those that are likely to cause you issues)
Just my take on things
If you search YouTube for questions to ask prospective tenants, you’ll find some really good advice on there
Whatever you do OP don't make tenants write fanfiction about living in your property.
They don’t; or mostly not, and the ones that do are easy to spot. I have used this method for many years, and have never(and I mean Never) had a bad tenant. I have never had a missed payment, nor have I ever had an issue when they have left. I treat my tenants with respect, and maintain my properties to a high standard. I also respond to any requests immediately. I also WhatsApp them every now and then to make sure they are happy or if there are any issues they would like fixing. This keeps an open dialogue. Don’t knock things till you’ve tried them
I agree. I've used Openrent for all ours and always open with "tell me a bit about yourself". You will see some people who are very open (even about previous issues, which you can then form a view on) and some who are very very cagey and defensive about being asked and this presents it's own caution.
Then I do one maybe two open house viewings to save lots and lots of visits and I ensure that I meet them all myself. I'll them all that it is not a matter of first to pay deposit gets the contract, but more a question of who seems the best fit at the end of the day. At this point you will get some who immediately try to give you 6 months rent up front - avoid. They won't have the money on the 7th month. Then others walk around asking you if you would remodel X for them or allow them to panel a bannister or let them paint everything in the house purple. It can also be interesting to assess who people turn up with... when a middle aged adult turns up with a parent in tow, it has usually emerged that elderly parent would be the guarantor.
We shortlist at the end of the day and go from there. Then they have to get through credit and affordability checks.
I have had one tenant (currently evicting) that didn't turn out so well, but that is really due to a life event - they were great tenants for a few years prior.
The only other thing I'd say is don't feel afraid to raise the rent a little each contract renewal. This way the tenants adjust to market rate and it isn't a horrible shock to them when they have to move on (and therefore means they can't move on quickly).
Honestly I've found flatmates this way. You'd be amazed how many bat shit crazy people you can filter out with a short list of easy to answer questions.
Even statements. I've put "if the advert is still up the room is still available, messages asking 'is this available' will not be answered" and you'd be surprised how many people say 'is this available?' - not read the questions, not interested.
It's easiest just to make clear statements, ask a few questions, and meet people. So many people slip up. E.g. there was the time I'd said couples were fine but all bills would be split 3 ways, one girl came round, she seemed pretty good, then she mentioned her boyfriend might join her in 4 months, i said fine but at that point all bills would be split 3 ways and she said "we'll see" - no love, we wont see. It's a clear statement in the advert. It's not negotiable. Goooodbyyee haha
A few things I look out for:
I avoid anyone offering to pay 6 months to a year up front. I know people think they have to do this, but generally when someone does they set my spidey senses tingling.
Be careful about people who want to sublet (called rent for rent). It’s a big stupid thing on social media at the moment. Ask clearly: are you going to live in the property yourself. If they say no, then no matter what pretty picture they paint saying you’ll get guaranteed income and they’ll upgrade the property, just say no.
Consider people who find it hard to rent: people with pets or renting their first home. In my experience these people will be good long term tenants, as they know the struggle to find somewhere else.
Generally, keep your property in a good state of repair, do 6 monthly inspections so you can spot issues before they turn into major (expensive) issues. Consider not charging full market rent, to get ‘grateful’ tenants who don’t mess you about (can’t be guaranteed of course, but this has been my experience).
I had to do 1) because no one would give us the time of day as applicants because my flatmate had no guarantor. Really good kind quiet reliable girl but oh sorry no UK guarantor no home for you.
I paid the 6 months because it was easier and I had the savings. (She paid me back).
As it turned out, the landlord of that flat was actually a bit of a slumlord but hey, we had somewhere eto live and we left it cleaner than we found it.
You have done the right thing by using a good letting agent. If they are good they should be doing everything possible to avoid you being stuck with a bad tenant. Everything else is just down to chance, and is an inherent unavoidable risk of the business that you are in.
Most tenants are fine, but you won't read about them online because there's no need for anyone to talk about them. That can make subs like this a lot scarier for a first time landlord that is really necessary!
This.
Get tenants with something to lose and treat them like people.
I had a great long-term relationship with an agent who I used on a let-only basis. They got lots of repeat business from me and got to know me and the properties. Rita took no nonsense and filtered out enquiries that she thought might be sketchy. She had good judgment and did a great job.
She left after covid and I tried a different agency - they were far more 'sales' oriented and got a long-term let at a good rent - but didn't think about the long term and landed me with a problem tenant. Never again.
This time I've used OpenRent and done the viewings myself. It's a pain (especially the no-shows) but I do feel very comfortable with the applicants and I'm confident that they are genuine.
Tldr - avoid wide boy estate agents.
My father gave me two simple questions which need to be asked of the potential tenant in person. The first is ‘Where have you been living?’ You allow them to answer. The second is ‘Why are you moving?’ Watch their facial expressions. If they pause or can’t look you in the eye it is often a dead giveaway.
Invite them to the property and speak with them, then speak with them a week later and see whether they are still saying the same thing , find out whether they are lying about anything .
I had one potential tenant who told me that his Father would also be staying , but he had overstayed his visa and was working illegally .
I admired his honesty and let him have the property , he wasn't any problem at all as a tenant .
Some potential tenants lie quite a lot
Don't use an agent. Most agents get random people to do the viewing who don't care about any of it, so they don't care to take the time to judge the applicant.
Meet people yourself. Speak to them. How interested do they seem, how engaged are they etc etc etc.
To be direct the problem tenants I've had have either been the ones I have 'given a chance' or when I have broken my own rules.
Interestingly I had the opposite with Brits staying put through evictions and foreigners being scared.
This is why things like good credit are so important. If they turn non paying a CCJ can be big.
Years ago I had an Aussie+Kiwi couple who waited until evicted and just went home. Had no care of CCJs or anything.
I know of someone who decided they were returning home. Maxed loans and credit cards, didn’t pay a few months’ rent etc…’pure calculated asshole.
Jesus, what a pair of pricks.
I don't know why I'm surprised because I had the misfortune of house sharing with one of these types. Believe me, they are a nightmare to rent with as well as rent to.
Usually cunty in other respects.
Do more vetting of the guarantor rather than the tenant , they generally have more assets so don’t want to lose them .
Ask thrm if they havr sought advice on r/UKtenants and if so it's a no 🤣
ALAB Change the locks Never mind the rent
Only let to tenants who work in banking or some other sort of regulated industry.
CCJs can cost us our jobs.
true, but many regions in England don't have a banking industry
Supply and demand issue, landlords generally are favourable of free market conditions, so blame them.
Charge high rents such that the only applicants that pass the affordability checks are those of higher income, and thus more likely to be consistent.
Buy insurance, that’s what it’s for
Don't let the whole property, keep an occupied room. So they are on a lodger contract, not a tenancy. This is what I do.
So you live with your tenants? If not and you just “keep a room” and don’t use it as a primary residence you’re one smart tenant away from a lot of pain. They’re not lodgers if you don’t live there as a primary residence, and you’d owe the CT and bills.. seems like a lot of hassle for really boring ineffective fraud.