16:28 PM, 14th March 2012, About 12 years ago
If you had a choice of the two tenants below which would you choose?
From a risk point of view, assuming both pass a credit check, they both look like they’d be pretty good tenants, don’t they?
One of the things missing from the tenant selection process of most Letting Agents is an assessment of how long they’re likely to stay.
We all know that tenant turnover usually results in a void period and some refurbishment costs, which costs money.
Our credit vetting process shows how long the applicants have been in their previous home(s) during the last 6 years.
We can then use this, in conjunction with an assessment of their circumstances, to work out who is likely to stay longer.
Based on this, I’d select the family rather than the tenant in the example above. The professional couple are a slightly lower credit risk and have a bond but there’s a good chance they’ll be on the move again in a year or two.
By the way, our average tenancy length is 3 years 8 months compared to the industry average of 18 months.
Previous ArticleProperty118 Landlord Newsletter - Issue 103
Next ArticleNumber of tenants struggling with debt soars by 55%