Help with finding tenant

seven-day-weekend

Hi there, we are just starting the process of purchasing a btl property, we have found a property and have a btl mortgage just going through. We have rented property out commercially before, but not for about ten years.

My husband was thinking of finding a tenant ourselves, rather than use an agent. There are several schools and hospitals near where we live, so thought these might be good places to advertise.

I know we have to put the deposit into an approved scheme, is one of them better than the others? The property has no gas so we don't need a Gas Certificate.

My main question is, how do we do the credit checks? Are we, as private individuals, allowed to ask for bank references? I know we can ask for personal references and those from a former landlord.

Any advice gratefully received.

G_M

See:

[FONT=&quot]New Landlords[/FONT][FONT=&quot] (information for new or prospective landlords)[/FONT]

Lots of links within that post.

This may also be useful:
Letting Agents (Tips for selecting, and tips for sacking them)

seven-day-weekend

Thank you - that is extremely useful!

slopemaster

I would recommend an online agent (such as u-pad) for the tenant-find, as they can advertise on rightmove etc. For about £100 I got masses of contacts from potential tenants. You show them round yourself, so you can use your own judgement.

They will organise the referencing for you and charge the tenant. Not particularly comprehensive or fast, but it does the basics.
Alternatively several firms out there where you can buy a basic credit check for about a tenner. Then you can check employment etc yourself.

seven-day-weekend

That is also useful, slopemaster. Thanks!

wwtrend

If you haven't been a landlord for 10 years why don't you join the National Landlords Association. (NLA). It has online training for landlords so you know, understand and upto date with your legal responsibilities etc. There is information on the deposit schemes and the legal time limits you have to do this along with the consequences of not doing it. Lots of advice really along with draft contracts and landlord insurance quotes. They do accreditation days which will give you all the legal information you need to know. If you supply any electrical equipment you need to get them PAT tested. Many landlords do go for an electrical safety certificate not mandatory but useful and likely to become mandatory. You might want to make decisions about other things too not mandatory but maybe desirable. There are also property clubs all over the country which is worth visiting/joining which keep you upto date and usually have guest speakers. If you have to do your rental properties up LNPG is a useful organisation.

Property tribes is a free forum and there are lots of property shows on that have seminars that might be worth a visit. I think the legislation is heavily weighted in favour of the tenant so you need to select your tenants carefully and do your checks. You also need to have a list of reliable and trusted tradesmen who will undertake work for you quickly and properly. British Gas do a contract which covers gas and electrical call outs. I'm sure you will be able to find a reliable electrician though as you don't have gas.

A lot of landlords get agents because they will get a high turnover of tenants which depends on your location and don't want to be involved in the day to day routine of dealing with tenants. There is some free training on the property insight website which might help you make your mind up. Even with an agent it does not relieve the landlord of their legal obligations and if the agent gets it wrong then it is the landlord that is ultimately responsible.
Always useful if the agent is also a property investor who takes care of their own properties.

If you select a good tenant and you both understand each others expectations which are clearly laid out in the contract then hopefully everything will run smoothly. Don't forget a very detailed inventory with photograhs and photographs of the condition of the property both agreed with the tenant upon signing the contract.

If it's your first time letting for a while I would be tempted to do as previously advised and get Upad or someone reliable to do the advertising and finding the tenants for you at least for the first time. You can then reuse the UPad marketing photographs they next time you have to let the property out yourself if that's what you want.

Good luck hope you get some lovely tenants.

seven-day-weekend

Thank you fort your good wishes and helpful information, wwtrend, and everyone else for your useful advice which I have taken on board. I think we will let the upad agency find the tenant

G_M

One more piece of advice. If you use an online agent (or indeed a high street one) on a tenant-find basis only, do not delegate to them taking the security deposit (and 1st months rent).

If they do it, and they register it, it is then in their name, yet you have no ongoing relationship with them.

Take the deposit yourself. Register it yourself. Take the responsibilty yourself.

seven-day-weekend

Just to say our BTL mortgage has gone through OK. Just have to wait for the conveyancing now!

Leon_W

I wouldn't bother with an agent if the property is close. They don't do anything that you can't do yourself. I just show prospective tenants myself that way you get to meet and suss them out which is half the battle.


I just put my cottage to rent on Gumtree for nothing at the beginning of the week and have loads of enquiries.

seven-day-weekend

Leon_W wrote: »

I wouldn't bother with an agent if the property is close. They don't do anything that you can't do yourself. I just show prospective tenants myself that way you get to meet and suss them out which is half the battle.


I just put my cottage to rent on Gumtree for nothing at the beginning of the week and have loads of enquiries.

Actually we have been speaking to someone we have known for years who has several properties and he said that he never uses an agent,he just advertises in the post office and has never had to wait for a tenant. So I think we will just advertise initially in the nearby schools/hospitals (four secondary schools and two hospitals). That way you know people have a job and we can ask for references from previous landlords who we will then ring and speak to.