When investing in property (UK), your focus will inevitably be on profit margins. The value of buy-to-let property for sale is intrinsically tied up in rental yield – and your future income depends on your tenants.
Find a suitable tenant for your house, and you’ll enjoy a reliable monthly income. However, find the wrong tenant, and the reverse may happen. Here’s a few ways in which you can ensure you find the right candidates for your buy-to-let property.
How to Find the Best Tenants
1) Select your target demographic. When looking for investment properties for sale, you probably already had a good idea of your target market. However, once you’ve purchased the property, you may want to refine your tenancy ‘wish-list’. Look at your house with an appraising eye. Who is most likely to want to live there? How can you make it as appealing as possible to them? And most importantly, how can you ensure these people see your property?
2) Vet carefully. The best way to find suitable tenants is through a letting agent, who will have a variety of procedures in place to thoroughly check all applicants. However, if you’re going to take on the process of finding tenants yourself, it’s important to do the right background checks. You’ll need to:
3) Interview wisely. It’s important to have an initial meeting with your potential tenants. This gives you the chance to ask them questions, but most importantly, provides the opportunity to get a feel for their character. Generally speaking, your gut response is likely to be correct!
4) Create an iron-clad contract. Before you even get to the interviewing stage, you’ll need to create a suitable contract. You’re not legally required to have a contract, but it provides you with valuable protection if anything goes wrong. This contract should cover the tenant’s responsibilities in terms of maintaining the property and paying rent, but should also detail your agreed responsibilities as a landlord. If possible, seek help from a solicitor, to ensure your document stands up legally.
5) Check they have the ‘right to rent’. As landlord, it’s your responsibility to check that your tenant has the right to live in the UK. As a result, you’ll need to get a copy of their passport, plus immigration documents if applicable. Failure to do this may actually result in a fine.
Investment Properties in London and the UK
If you’re ready to build your property portfolio and are keen to find out more about investing in property (UK), talk to The Buy2Let Shop today. We not only help you to find suitable buy-to-let properties for sale, but we also manage your portfolio, allowing you to focus on expanding your business. We also offer a range of property seminars, plus help with buying a house at auction, if required. To find out more, simply visit The Buy2Let Shop website today.