When you are renting out your property it is extremely important to get the right tenants. Although you can tell a lot from meeting face to face and its always good to trust your gut, you do need to do the proper checks on all tenants. It can be very difficult to remove a problem tenant, especially in the initial 6 months fixed period. The only way to do this is by serving a section 8 and to do so you need to meet certain criteria as set out in Section 8 of the Housing Acts 1988 & 1996.
At View Estate agents London Bridge we only deal with good tenants. We know that you will never use us again if we fail in this basic but fundamental task. We fully reference all tenants and below are some of the things to consider.
You obviously need your tenant to pay the rent each month so we need to confirm an adequate income. We carry out a reference check with the employer to ascertain salary and whether the tenant is in full-time permanent employment. The combined salary of the tenants must be equal or more than 30 times the monthly rent. If the tenant is self-employed or owns their own business then we will ask for an accountants reference and to see the last year-end accounts. If the company is newly incorporated or the tenant has been self-employed for less than a year then we would either take 6 months rent in advance or ask for a guarantor. If the tenants are students and therefore do not have an income then we would ask for a guarantor or 6 months rent in advance. A guarantor is someone who is able to sign a separate contract or guarantor agreement whereby they guarantee to pay the rent and any damages not covered by the deposit amount. The guarantor must be on an annual salary of 50 times the monthly rent and be a UK resident and homeowner. In some cases, students will be receiving an income eg PhD students. Where this is the case we will always get written proof of the amount and the term of the payments. Someone may be on a contract rather than permanently employed. Where this is the case it is important to check that the term of the contract covers the length of the tenancy.
We will also get a previous landlord reference. We will ask the landlord how long the tenant rented for, the rental amount, condition of the property and whether they would rent to the person again.
A credit check must always be carried out. You may think you’ve found the perfect tenant until you find out they owe £10,000.00 on a CCJ. It is an easy check to do and worth its weight in gold.
We always ask to see 3 months worth of bank statements. This is basically to see normal activity on the account.
If you need any help finding a great tenant or just want to discuss some of the above then please don’t hesitate to get in touch with one of our friendly team.