Bailey
Welcome to our
Weekly Newsletter
we're so glad you're here!
The next chapter
The Kendall Bailey Playbook
Welcome to this week's edition of the Kendall Bailey Playbook. In this issue, we delve into 4 crucial steps you must do to avoid letting your room to a Troublesome Tenant
REMEMBER: Introduced under the Immigration Act 2014, the Right to Rent check is a legal obligation for Landlords to ensure that any tenant has 'Right to Reside' in the UK.
Ensure you have two forms of ID: one photographic, such as passport, and the other one to confirm proof of current address, usually a utility bill or a bank statement dated within the last three months.
Thorough Background Checks
Who are you trusting to live in your propertyAlways conduct comprehensive background checks on potential tenants.
Why it matters: Knowing a tenant's history can help you avoid those who might have a history of problematic behaviour.
This includes checking their rental history, criminal records, and credit history.
Formal referencing is a very time-consuming task but it is one of the most, if not the most, important aspect when letting your property.
If in doubt start with the 3 main 'W's:
Name, address, telephone, email, occupation, marital status?
Timeframe for move, flexibility?
Upsize/downsize, education, job relocation, first home?
Use this to get a feel if they are the type of tenant you wish to house. Then take the time to ensure they have the means to pay and look after your property.
Credit Checks & Guarantors
It pays to make sure they can payA tenant's credit score can be a good indicator of their financial responsibility.
Why it matters: A higher credit score generally reflects a person's ability to manage debt and pay bills on time, which is crucial when it comes to paying rent reliably. Assessing credit scores helps you avoid tenants who may struggle with timely payments, thereby reducing the risk of financial issues that can lead to eviction proceedings and vacancies.
A good rule of thumb is that their income should be at least 2.5 times the rent amount. This minimizes the risk of missed payments.
Rent: £800 per calendar month
Annual Rent: £800 x 12 = £9,600
Required Annual Income: £9,600 x 2.5 = £24,000
This means the tenant must show a gross income of at least £24,000 per annum in order to pass the financial reference.
A Kendall Bailey Must:
Always get a guarantorThe guarantor might not only guarantee the rent but also any other financial commitments of the tenancy such as the cost of dilapidations at the end of the tenancy.
We always recommend ensuring you have a guarantor for all your tenants to provide that extra peace of mind.
NOTE: To avoid discriminating against overseas Tenants, we can set up Tenants with a UK base guarantor via one of our 3rd party guarantor specialists.
Current Landlord References
Don't just take the tenants word for itThis is the final type of reference check and is carried out on a tenant when they are already renting another property. This gives a good indication of their quality as a tenant.
The Landlord reference check will establish:
- How much rent was paid by the tenant?
- Was the rent paid on time?
- Was the property looked after during the tenancy?
- Was the property left in good order at the end of the tenancy?
- Would the Landlord consider renting to the tenant again in the future?
Clearly Outline Expectations & Trust Your Gut
Plenty more tenants in the seaClearly state your expectations in the rental agreement.
Why it matters: A well-crafted rental agreement sets the ground rules for the tenant's stay, covering everything from rent payment dates to property maintenance responsibilities. Clearly outlining these expectations helps prevent misunderstandings and disputes, ensuring that both you and your tenants are on the same page and contributing to a harmonious living environment.
Finally, regardless of the outcomes of the standard reference checks, trust your gut instinct. If you're in any doubt about whether the applicant is the right person for your property, don't go ahead with the tenancy.
Did you fail to do the above and now have your very own Troublesome Tenant?
Hindsight is a wonderful thingOver the years we have heard so many incidents in which a landlord didn't have the resources to do a full check on his tenant or more commonly was over trusting with the information the tenant provided. As a result they weren't paid the agreed rental and then had trouble evicting the tenant refusing to leave.
Dealing with a troublesome tenant is not only very time consuming but is also very costly.
If you are currently experiencing issues with any of your tenants or wish to chat more about how we can help ensure you have the right tenants moving forward; contact us today.
There is a reason we currently have 0 tenants in arrears
Work with us today
Have any questions about working with us?Whether you are looking to hand over the management or just want to catch up on the current HMO market we are here to help.