he most important decision time spend finding the property,
any landlord makes is buying and arranging the rental
deciding who can live in then we have a very serious
their property. Who will you, as investment on our hands indeed.
the owner, allow to live in your
investment? This decision is so Now, imagine all that money in
vital to the profitability of any real, tangible terms, stacked up
property investment business and in a room in the house and then
affects the business on so many consider we hand over the keys to
levels that it’s amazing that someone and say, “See you next
some landlord don’t have a year”. Now we can begin to see
formalised procedure to protect how important it is to select the
themselves from making bad right tenant. Of course, I’m
decision. being dramatic and we do have
legal safe guards but I hope that
Let’s think about what we’re by considering your investment in
actually doing when we rent a terms of hard cash (like a
property. Instead of thinking of professional investor) then
the property as a monthly income you’ll treat the question of
generator think of it as a pile occupancy very seriously.
of cash. Cash you have tied up in
the deposit and purchasing costs. There’s more to it than just
Cash you hope to gain a regular financials. Not only are we
income from through renting and trusting the tenant to look after
more cash that you’ll receive if our investment but we’re also
you sell the property and realise investing our free time with
your capital gains. (Assuming them. What do I mean? If we are
house prices have risen since you managing the property ourselves
purchased). If you include in and not using a letting agent
this the value you place on your then we have made a serious
commitment in time to look after tenants. The first is a long and
that tenant. If you have a tenant very comprehensive application
who does not appreciate your form. I ask for as much detail as
property or does not treat it possible from the tenant. I need
with care and respect then you all their contact details, ID,
run the risk of losing your proof of current address such as
evening and weekends in telephone or electric bills,
maintenance and management tasks. previous addresses and, perhaps
What about rent collection? An most importantly, references from
unreliable tenant who does not their employer, previous landlord
pay on time creates stress and (if they’re moving out of home
worry. Legal protection lets us I’ll ask for their parents’
all sleep better at night but the contact details) and a character
practicalities of recouping money reference from a recognised
and legal costs are a headache we member of the community such as a
do not need and one that’s very Doctor or Teacher. Importantly, I
avoidable. always act on these references. I
will check with whomever they
Once we know how seriously we have given to make sure the
need to take the task of finding details are correct and they can
the correct tenant we can start vouch for the applicant.
looking for the very best people.
In this case ‘best’ has two Secondly, I ask for a larger
simple criteria. 1) They pay on deposit than the usual 4 weeks
time and in full 2) They look rent. Typically I ask for 6 weeks
after the property as if it were rent (UK law give the tenant an
their own. automatic option to sublet if the
deposit is too excessive, say
I’m going to discuss three tools more than 8 weeks rent). Paying
we can use to help find good more upfront is usually a good
sign that they are serious. about tenants are made in
pressure situations. An empty
Finally, I have to feel property is very damaging to the
comfortable about the people. If bottom line of a landlord. If a
I can get along with them when property is unoccupied it’s very
the property is viewed and when tempting to let the first person
we talk on the telephone and if I who comes along have the tenancy.
don’t have any intuitive alarm I know, I’ve made the mistake
bells going off then I trust my myself (several times I’m
own judgement. reluctant to admit). This
situation is exacerbated if you
At this point you might be find your property is not in
wondering about a credit check? demand. If you only get one phone
Yes this is a great tool call from your advert in the
depending on the affluence of local paper then you’re putting
your potential tenants. Some of pressure on yourself and your
my properties are let to people business.
on social security benefits, many
of whom I’ve had to help set up a Therefore, the best way to make a
bank account even. In these cases good decision is to have a lot of
a credit check would not be people to choose from. Creating a
beneficial but for better off big list of possible tenants
tenants it can be a worth while comes from good advertising with
exercise. good descriptions of you property
and its selling points, realistic
Once we know how to approach the pricing (even undercutting
subject of finding great tenants competition in a renter market)
we can consider why people make and building a solid reputation
poor letting decisions. In my as a landlord.
experience the worst decisions
About the Author:
Steve Norton is a landlord with 9 years of experience and owns properties in the UK and Australia. With a clear focus on making the landlord's life as easy as possible while maximising profit more of Steve's insider tips on landlording can be found at http://www.property-management-secrets.co.uk
Source: www.isnare.com 
