Are you considering buying a property to let? Many people have already done it and, according to the Council of Mortgage Lenders, people who took out buy-to- let mortgages increased by 483 percent in the five years from 2005.
The majority of these landlords are likely to have no issues whatsoever with their tenants, whether through luck or carefully vetting however, you might need courage to view the new show on television called “Tenants From Hell”, with real-life horror stories about the unfortunate experiences of some landlords.
There’s also the east London property that was let in complete innocence to an innocent Chinese couple, who were later Buy marijuana in Australia discovered to be operating an agricultural cannabis business. There’s also the PS250.000 house, which was let to an unnamed tenant. There was a dispute over the rent, and the tenant razed the house using a 14-ton digger.
Do we need to continue?
Although these stories aren’t as newsworthy as they could be, it doesn’t need to be exactly like that.There are ways you can improve your odds of getting a tenant who is a good fit.
Always seek out and verify references. If the prospective tenant is reluctant to provide a reference it could be a sign that everything is not as is expected. Credit agencies will look into the references of the tenant at a cost of PS25.
It is perfectly reasonable to seeking to see minimum three month of bank statements. Find out where the tenant is employed and ask the employer for the length of time they’ve been employed there. Ask their former landlords if they have had any issues with their tenancies.
It could be possible for the prospective tenant to locate a guarantor. If you are an uninvolved tenant or student from home for the first time, they might be able to request a parent to support them up by securing the rental amount or a payment for damages. This will surely give you peace of mind and provide a reason for the tenant to monitor the situation.
Do not be impulsive when choosing the person to lease your home to. After you’ve completed the previous steps and are ready to let the property, ensure that you ask the tenant to sign a lease prior to moving in, and securing at least one month’s rent or more. You can ask for as much as 12 months of rental in advance, however this may be too optimistic in light of your tenant’s situation. A duplicate of the passport of the tenant along with the details of their NI number is a great way to protect yourself in case of trouble in the future, since they can be helpful in tracking down the person if required.
If you make a poor choice of tenant If things go wrong it can be difficult to get your tenant out of the property or collect rent owed. The system of courts in Britain is strained as repossession proceedings can require as long as five months to be processed. It is clearly a stressful procedure and not forgetting the financial burden that comes with it.