Finding the right tenant for your buy-to-let property is vital. Tenant quality is a risk management issue, with many landlords suffering from rent arrears, property damage, ghosting, or unreliable tenants.
This guide helps you put together a structured tenant selection process using UK-specific legal and practical advice to find good tenants for your properties.
Good tenants pay on time, reduce void periods, and protect the value of your asset, helping to reduce the time and stress of managing things. Cost is also a very important factor as one bad tenant can be much more expensive than spending an extra few weeks finding a good tenant.
The current strong rental demand in the UK does not always equal good applicants and the increased levels of competition amongst tenants can lead to rushed decisions. We have heard from many landlords who say that they wish they had waited, or that a tenant looked fine at viewing and later turned out to be a problem.
Good tenants are reliable rent payers, so look at their past behaviour instead of promises by making use of good referencing. Previous landlords can tell you a lot but make sure you read between the lines of their comments to spot potential issues.
You need tenants who have stable incomes and employment, so consider the length of their employment and whether any self-employed tenants have security in place.
You need to be confident that your tenant will respect your property, so look at their behaviour cues during a viewing carefully. Long-term commitments can be very important as they reduce turnover and costs, so explore what their preferred rental term would be.
Right to Rent is a legal requirement to check that renters have the legal right to live in the UK. This means checking and verifying original documents and failing to do so can lead to civil penalties and criminal liability.
Your property must be compliant with all EPC, Gas Safety, Electrical Safety and HMO regulations. Your property needs to be clean, neutral and functional, as one that is ready to move in will attract an organised tenant.
You need to offer a realistic rent that can attract stable applicants. Overpriced properties are more likely to draw in desperate or unsuitable tenants.
Property photos and descriptions need to prioritise clarity, with an accurate representation of the property to build trust with your potential tenants.
The headline of your property listing will set expectations, so avoid vague or salesy language and lead with suitability rather than desperation.
You should include vital details about the rent and deposit, tenancy length, bills, pet policy, and parking and transport links. This transparency can help to filter out any unsuitable applicants early.
Any photos or virtual tours of your property need to be good quality to reduce the number of wasted viewings. Virtual tours can attract serious applicants, but you need to make sure there is consistency between your listing and reality.
Rightmove and Zoopla offer the widest reach, but there are some serious cost considerations attached to these platforms. You may want to consider niche or local platforms that can lead to higher quality enquiries.
Social media groups can be useful, but you should use these with caution as they can lead to mixed quality results.
Letting agents have access to huge tenant databases as well as experience in filtering applicants on your behalf.
Reach does not guarantee quality and so it is the correct placement of your advertisement that is essential.
You will need to run tenant referencing checks to look at their credit history, CCJ’s and affordability ratios to avoid tenants who may not be able to afford the rent over the full duration of term.
There also needs to be employment and income verification, through payslips, contracts and employer references. Previous landlord references are also important, so make sure you ask questions about rent, punctuality, the condition of the property and any disputes. Vague answers could be a warning sign.
Right to Rent checks also need to be conducted and recorded as part of the landlord’s legal obligation.
Interviewing a tenant requires structured questions around the timing of any move, the length of their stay, and expectations on both sides. Landlords also need to look at behavioural cues as evasiveness or inconsistency could be a red flag. During any interview, it is vital that you avoid discrimination or making any assumptions. All decisions must be conducted fairly, and be well documented.
Letting agents have much greater marketing reach and experience in vetting tenants. They also understand how to handle compliance and can therefore save you vast amounts of time. Your agent must have good local knowledge and transparent fees. You should also look at their referencing standards and communication style.
Self-managing your tenant hunt gives you direct control with some significant cost savings. This gives you hands-on oversight but will take up much more time.
It is essential that you carry out Right to Rent checks as well as EPC, Gas Safety and Electrical Safety checks. There also needs to be deposit protection timelines and schemes in place.
It is important to be aware of any unverifiable income or rushed requests to move in. Any reluctance to provide documentation should also be a warning sign. Poor referencing explanations and a history of disputes should make you wary.
To retain good tenants, you need to have good communication channels. It is important that you keep up maintenance of the property and conduct fair rent reviews. There should be incentives to be good tenants, and your renewal discussions need to be fair and transparent. Remember, retention is cheaper than replacement.
The biggest mistake most landlords make is to rush their decisions, skip important checks or agree to weak agreements in order to get the process moving. Landlords can also be guilty of ignoring tenant expectations.
As a landlord, you need to fulfil all your legal requirements as well as being selective and careful in your processes. Finding a good tenant can take time but will be worth it in the end.
