How to Avoid Renting to Bad Tenants
- Better Covenant Properties
- Dec 16, 2023
- 4 min read
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Bad tenants result in wasted time, money and energy, so it's fair to say, every landlord wants to avoid renting their houses to bad tenants.
You certainly didn't become a landlord with the hopes of receiving late rent payments, lack of care for your property or paying solicitor and court fees. You likely became a landlord to receive a form of passive or near-passive income.
To avoid renting your property to a bad tenant, you may want to consider entering into a tenancy agreement with a company, rather than an individual.
Typically landlords tend to opt for residential tenants because a sense of safety comes from knowing who is staying in the property. This does have its advantages. However, you are probably reading this because you've realised that residential tenancies may also come with their fair share of difficulties. With that being the case, let us consider some of the advantages of renting to a company.
Avoid renting to bad tenants, by renting to a company.
Firstly, it is important to point out that not all companies will manage your property well. With rent-to-rent, or guaranteed rent strategies on the rise, there are a few badly run companies that don't deserve your email address, let alone the keys to your property. Therefore, it is important to check out the company that you are considering working with.
Nevertheless, the majority of companies who are willing to rent your property, will have the correct systems in place, the necessary staffing and maintenance teams as well as a healthy respect for both you and your property. Let's begin by exploring the advantages of renting to a company.
What are some of the advantages of renting to a company?
This article is specifically referring to renting to a property management company, whose strategy is serviced accommodation.
Well-maintained
Most companies will cover some of the maintenance for minor wear and tear work, whilst also arranging the maintenance jobs. Though the company may not pay for bigger work such as boiler repair or ceiling leaks, they often provide a trusted maintenance team who can fix the issues and will be willing to work with you.
Well-managed
A good property management company arranges regular cleaning of your home. A bonus to this is the cleaner is regularly on the ground as your eyes and ears on the property. A typical residential tenant on an AST contract may refuse you entry to your property, or may limit your visits to maybe once every three to six months. By renting to a company, you avoid having bad tenants in your property where you're unable to inspect it regularly.
External CCTV may be installed with the landlord's/freeholder's consent. Once again, this provides extra security and protection concerning what is happening in and around your property.
Kept in show-home standard
Have you ever visited one of your tenants at your property and been horrified by the state of your home? When your home is managed by a good property company it is kept in show home standard.
You may expect to receive the keys back with usual wear and tear to the property, such as lightbulbs not working, scuff marks on walls, carpet stains etc. However, a company let will result in you receiving the property back in an even better condition than when you received it. It is in the company's best interest to keep the home in tip-top condition.
One of the best ways to avoid renting to bad tenants is to rent to a company. Better Covenant Properties offer a brilliant service to our landlords. Nevertheless, if you prefer to go down the route of residential lets, then here are a few tips to avoid bad tenants:
Ensure your home looks quality or luxury
This attracts the type of tenants who can comfortably afford quality or luxury living. Good tenants will not opt to rent a property that is poorly maintained.
Follow up on tenant referencing checks
Call referees back to verify what they have said in their reference about the tenant. Do your due diligence on the tenant. For example, rather than calling the phone number listed next to the referee's name, try to find the telephone number yourself through the use of Google or social media.
Whilst on the topic of social media, so many people live their lives publicly. Don't be afraid to Google or search your prospective tenant on various social media sites. It's important not to judge a book by its cover, but a wise person judges rightly.
Try to inspect their current home
How their current home is maintained is very likely how your home will be maintained. If you happen to be in their area, offer to drop the contractual agreement off at short notice. You can use this small window of opportunity to see how they maintain their current home.
No doubt, you became a landlord so that you can receive passive income and focus on other things. You don't want to be chasing tenants for rent or trying to get them out of your property. Renting to a company is one of the best ways to avoid bad tenants. At Better Covenant Properties, we help landlords just like you, to receive guaranteed rent and alleviate any stress about your property. If you would like your property managed by us, contact us today!
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