Sliding scale of rents depending on tenant risk?Make Text Bigger
I have a couple of properties becoming available for family lets, but in the past I have found them to be hard to let at the rent level I’ve asked for.
Due to taking on fairly high risk tenants (DSS tenants usually with no deposit), and tenants leaving properties damaged and with rent arrears, I have so far made a loss on these particular properties.
If I am to take on high risk tenants then I need a higher rent than if I were to take on low risk tenants, so I am toying with the idea of having a “sliding scale” of rents for each property, which would be dependent upon the risk, such that applicants that can provide deposits and rent guarantors would pay less pcm than those who cannot provide such guarantees/protections.
I could then advertise the property at the lowest rent (i.e. that which I would charge to tenants with guarantors and a deposit), but make it clear in the advert what the sliding scale was so that everyone can match their circumstances to the sliding scale so they know what the rent would be.
I think this could attract a much higher level of interest from prospective tenants, BUT would this be reasonable, ethical, and legal????
Does any other landlord have experience of trying this?
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