How do we select the best tenants for us?

by Readers Question

10:13 AM, 20th August 2019
About 4 weeks ago

How do we select the best tenants for us?

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How do we select the best tenants for us?

We are first time landlords so looking for some advise on selection of tenants. We put up our property in Cardiff for lettings, and went through 6-7 viewings on 1 day. Out of these, there have been 2 parties interested, details below.

1. Two mates currently living in shared accommodation. They live and work locally. One of the guys is working with a company from last 4 years and other one is self employed and doing some part time jobs. Second guy hasn’t got any accounts as such as he just got self employed few months back but prior he was doing these part time jobs. — These guys are giving us the advertised rate of £750 pcm. Issue we have here is, what if one of these 2 guys decide to leave. How would we create the contract on whose name etc.

2. A couple — both of them works and have been living in previous rented place for 4 years. No pet or no child at a moment but surely looking to grow the family — which we have no issues with. These guys are willing to pay £700 (unfurnished)

Now our flat requires some work — already got the flooring done, new bathroom going in. If we give it to couple then we may have to do kitchen as well, but if we give to the Tenant 1 then not required as those guys hardly be using kitchen. We are not sure how to decide which tenants should we go for.

We went for open rent, and will be going through the reference check as they provide for a small fee. Is that enough ? Shall we take a hit of £50 and give it to a couple as they tend to stay longer? Please advise us on which tenants we should consider and what all checks we could do before giving them.

The flats within same block have history of bad tenants like drugs etc, and not paying the tenants so we are little on cautious side and wanted to give it to right people.

Thanks
Kaps



Comments

ahloughlin@gmail.com

20:35 PM, 21st August 2019
About 4 weeks ago

I don't use agents at all, just rogues. I use Mudhut, it is free and awesome. Get a check done and take guarantee insurance out. Just 13 quid for my flat, last tenant looked good, all checked out but did not pay rent. Insurance with rent guard did it all and paid me unpaid rent and up to relet.
Just make sure you have AST and EPC and get tenant to confirm receipt of EPC and the gov doc. They must confirm receipt.

reader

21:46 PM, 21st August 2019
About 4 weeks ago

I have used ARLA agents for 20yrs without a problem. If you have a full time job or just enjoy yourself and family, agents give you that freedom. With a bit of bargaining power you will be paying 10 to 12% incl VAT. Very little cost for your freedom.

kaps z

19:23 PM, 22nd August 2019
About 4 weeks ago

Reply to the comment left by Darlington Landlord at 21/08/2019 - 15:58
@darlington landlord. Thanks for your advise. Yes we have joined Rent Wales, I will surely ask them for all we need to do legally. I have some level of idea as reading on Internet. things like EPC, Electricity circuit check, gas certificate, deposit scheme, tenancy agreement , landlord insurance and physically checking the right to live evidence. To be on safer side I will also go for rent insurance.

Coming to your question where we found these prospective tenants, all were from the viewings from openrent. I personally showed them around the flat.

kaps z

19:27 PM, 22nd August 2019
About 4 weeks ago

@ahloughlin@gmail.com thank you for your advise. being first time we went for openrent and they have got rentguard company for reference check. Now after checking comments here I happened to check there reviews and they are awful.
So what I did is asked the tenant to send me the copy of bank statements, employer contact details, landlord contact details and payslip so i can personally verify them. We will surely get into AST and will get EPC signed off by them on email.

Paul Shears

22:13 PM, 22nd August 2019
About 4 weeks ago

Reply to the comment left by kaps z at 22/08/2019 - 19:27It's the only way to go in my experience! Do as much of the checking yourself as you can. Then think and act outside the conventional box used by these agents.

Chris Daniel

23:26 PM, 22nd August 2019
About 4 weeks ago

Reply to the comment left by Neil Patterson at 20/08/2019 - 10:17
De-Reg Act ( Sec 30-39 ) doesn't apply to Wales.
Tenant Fee Ban is due to start 1/9/19 Has NO deposit Max !!!
See Summary on Facebook - Possession Friend.

Deposits and Rent Smart Wales - Registration and Licensing are the main requirements at present.

Dr Rosalind Beck

8:42 AM, 24th August 2019
About 3 weeks ago

I would favour the couple. If the self-employed person didn't pay, you would have no way of making him. You can't get an attachment of earnings on someone who does not have an employer. If the other working tenant left, you would be left in the merde.

kaps z

4:16 AM, 25th August 2019
About 3 weeks ago

Thank you everyone for your advise. Based on what everyone mentioned here I asked the tenants to send me the bank statement and pay slips including previous landlords contact.

I went to pay slips and all matched up like rent was on time. Then I called the landlord, this is where is got interesting.
1. As per him, tenants are fantastic, never had any issues with rent.
2.. they kept the property clean and they were nice to landlord.
3 however he noticed that someone other than that couple used to live with them. He has not personally saw the 3rd person but he saw another bed in Reception room.
4. He stressed again that the tenants have been living for over 3 years in his property and never had any issues.

Now this is what I noticed that when the couple did the second viewing, they got a 3rd person who when I asked was his brother in law. So I even asked the main tenant that how many occupants will be living in the property and they clearly said only 2 - couple.

Shall I ignore this ? And given they are keeping the property well and never had any issue with rent being paid.

kaps z

8:28 AM, 25th August 2019
About 3 weeks ago

Reply to the comment left by kaps z at 25/08/2019 - 04:16
Just to add, they are Italian passport holder.

Paul Shears

8:37 AM, 25th August 2019
About 3 weeks ago

Reply to the comment left by kaps z at 25/08/2019 - 08:28
They are not being entirely straight with you for some reason. Maybe the third person needs somewhere to stay a few nights a week. Whatever the reason, I would back off. I hear alarm bells.

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