Tenants from Hell
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We’ve been speaking to a number of landlords recently who are experiencing ‘less than perfect’ tenant scenarios. We’ve heard just about everything over the years from unscrupulous agents pocketing deposits and disappearing without a trace, seemingly perfect tenants installing locks and subletting rooms in unauthorised rent-to-rent accommodation right through to straight-forward squatters – and even a marijuana farm!
As a landlord, how can you protect yourself from these expensive, stressful and time-consuming mistakes and what should you be looking for when choosing an agent to market your property? Once the agent has found new tenants, how do you know if they are any good? You did check, right? In this market you should have a choice of good tenants.
Read on for our top tips to avoid the tenants from hell…
It seems simplistic, but nine times out of ten, a good agent is going to sniff out a problem tenant and avoid introducing them to your property in the first place. Experienced agents have met tens of thousands of potential tenants and should know when something isn’t right. The tenant’s story doesn’t stack up, the source of funds are questionable, the tenant is overly keen or pushy etc. Start by choosing the right estate agent for you.
Ask yourself (or the agent):
Are they registered with a redress scheme, like The Property Ombudsman? Details of registration with a redress scheme should be clearly visible on their company website and in their communications with you. It’s also a legal requirement. Do they have Client Money Protection? Are they a member of PropertyMark? (The largest professional body for both estate and letting agents respectively.)
How long has the company been operating and how long has the agent been in the industry? Specifically, who is the individual working on your property? The agency might be ancient but the individual meeting your potential tenants is the person who counts. Do they have less letting experience than the tenants we’re trying to avoid?
When selecting new tenants, what kind of referencing is your agent undertaking? Does your agent provide you with the referencing reports? Do they undertake any independent checks via open sources like social media and Companies House? Are they checking the tenant’s legal right to rent?
After move-in, does your agent provide you with a copy of the tenancy agreement, deposit registration certificate and inventory? We’re surprised to hear how often these basic documents are not in place or are not legally-binding – and your ability to take legal action to evict a tenant later on is reliant on the documentation that was issued to a tenant when moving in.
Are the property management team equipped to deal with such tenants and scenarios? Do they have the experience to realise something isn’t right and then deal with it early? Are they visiting the property for inspections and are you receiving a report of the condition of the property?
Ultimately, with these simple points in mind, do you trust your agent?
Thinking about it differently, would you hire them to work in your business? Are they reliable, responsible, communicative and transparent? If you have any doubts or any warning bells are ringing, it’s time to pull the plug on this relationship. Ultimately, you are trusting this person with something incredibly valuable, your investment property or portfolio.
We’re launching a landlord advice service where you can connect with us to discuss tricky situations – large or small. Be it a tenant wanting to leave before their notice period, requesting a change in the date they pay rent, clarifying the legal requirements for valid eviction proceedings, or managing the timing of a property sale with tenants in situ, we can offer friendly expertise and there is no such thing as a stupid question.
Let us know what you think and if you think this service would be useful to you. We’ll be announcing the details shortly so keep an eye on our website and social media.