How buy-to-let landlords can attract great tenants

Posted November 17, 2015

As a buy-to-let landlord, you want great tenants. They can make business a pleasure, help you plan your future cash flow, and lower the costs of maintenance, tenancy renewal and income dips between tenancies.

But, what practical steps can you take to attract the best around? Here are our tips, from our experience as specialist buy-to-let accountants, to help you find your ideal tenants.

Before you rent the property

Make sure the properly has been comprehensively cleaned and recently re-decorated
Keep the décor neutral to appeal to a broader applicant base

Decide if there’s a specific kind of tenant that you want, and if so, what might attract them. Here’s a quick guide:

Graduates – central location, small square footage, modern décor
Families – practical and safety features, minimal décor, large square footage
Retirees – classical décor, medium-to-large square footage, quiet location
Students – close to campus, small square footage, plain décor

Set your rental price at a fair and competitive (but also profitable) rate, and use a reputable agent who is familiar with your preferred demographic.

Deciding which prospective tenant is right for you

Keep an open mind for anyone who meets your ‘ideal tenant’ criteria and thoroughly vet prospective applicants:

Check personal tenant references from previous landlords
Check applicants’ financial references (credit rating, etc)
Arrange a face-to-face meeting with the prospective tenants so you can both be assured you will get along

The tenancy agreement

The whole point of finding a great tenant is to get them to stay as long as possible. That’s why fixed term/shorthold Assured Shorthold Tenancy Agreements (ASTs) are the most common and often the most profitable type.

Under ASTs, the entire property is rented by the tenant, who is responsible for upkeep of and payment for a property for a fixed term of 6-months+. This guarantees you both some surety, enabling you to plan your future revenue and the tenant to formulate their long-term living costs.

Fixed term/shorthold AST ties you to a single rental rate for the duration of the contract, but can also assure you of a monthly income. If a tenant knows you take their habitation seriously and doesn’t see cheaper properties on the market, they will be encouraged to stay for the duration of the contract and beyond.

Be fair with your rent: while a rental increase of £50pcm may yield £600pa, an unexpected break in tenancy of just six weeks at a £500pcm property will set you back £750.

How to maintain the tenancy?

When you’ve got your ideal tenant through the door, here’s how to maximise their stay and your income stream:

Do

Allow some degree of flexibility to move furniture, or even re-decorate
Act quickly to address any maintenance concerns
Inspect the property at pre-set times and be proactive in solving issues as they develop
Have some flexibility in your dealings, whether it’s the property or contract
Be friendly and make sure that tenants know you want to communicate well

Don’t

Impose unreasonable rent increases – the tenant will look elsewhere and could leave you without an income stream abruptly
Come and check up on tenants too often – even if you feel that you’ve built a rapport, the tenant will need to make additional preparations to see you
Turn up unannounced and demand to get in – not only is this illegal, your tenants won’t put up with it

If you’re a buy-to-let landlord and want professional advice and assistance to help manage your property finances, contact our expert team today!