How to select the right tenants for your Stevenage investment property
Strong yields & high profits are becoming increasingly more difficult to obtain nowadays. The tenant fee ban, additional certificates and tax implications have made the life of a buy to let investor less desirable. So choosing the right tenant is more important than ever before.
So as a bare minimum make sure your new tenants earn at least 30 times the monthly rent, so a property at £1,500 pcm they would need to earn £45,000. However with the current cost of living crises & increase of energy prices, I recommend choosing a tenant who earns slightly more so they can live comfortably without difficulty of paying the rent.
Are they renting currently so that a landlord reference can be provided? In this case you can find out if they paid rent on time and looked after their current rental property.
Have they had any poor credit history which could invalidate your landlords insurances.
Who will be living in the property? Too many residents could result in more ware and tear, as well as the fact they may outgrow the property sooner meaning they may serve notice quicker than expected.
Legally your tenants will require a right to rent, to confirm they can live in the Uk.
Legislation is forever changing, at avocado property we offer a full management service, so if any new requirements are implemented we’ll ensure you’re fully compliant, to avoid any fines or worse imprisonment
If you require any other lettings advice, I’m a local landlord myself and happy to answer any questions you may well have.
07507 837 346