Don’t let a bad tenant turn your new mortgage into a millstoneMake Text Bigger
At last it looks like the buy to let market is beginning to show signs of recovery with mortgage lenders showing more interest in landlords than the first time buyer.
This is great news for anyone wanting to make a living out of letting property, and with mortgages harder to come by for those wanting to buy their own home, there should be a plentiful supply of tenants just waiting to snap up rented accommodation.
However…….and there always seems to be a however…….if you get the wrong tenant, that buy to let investment could soon prove to be a very expensive and a stressful millstone.
Renting property is a great way to make a living so long as the tenants keep their side of the bargain. If they pay their rent and pay it on time; if they honour the tenancy agreement and don’t turn your place into a cats home, drug den or bordello; and if they don’t wreck the place or simply vanish, taking all the fixtures and fittings with them, then life is sweet.
If they run up months of arrears and then just disappear, you are left without income….oh and that mortgage you just took out to pay for the place.
That is why it is so important to rent to the right people. Obviously, until building societies and banks give out crystal balls with their mortgages, you are never going to know for sure whether your new tenant is a safe bet or a nightmare about to happen. But there are steps you can take to minimise the risk. Referencing is obviously one route but there is now a new organisation aiming to establish a nationwide database of tenants for the lettings community.
The aim is to create a national network of landlords, local authorities and letting agents who will provide the database with simple information about their tenants, which can be shared amongst others in the business. TenantID aims to make it possible for anyone who chooses to be part of the network to be able to discover at the press of a button whether the person wanting to rent from them has a track record of trouble or not. Visit the TenantID website at www.Tenantid.co.uk and register for FREE today.
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