Targeting the Right Tenants

• Don't waste money on advertising that isn't targeted. Find the best means of marketing your properties -  local newspaper, classifieds or on the Internet. Try different methods and when you find one that works, stick to it.

• Make sure you target the right tenants with accurate descriptions of the property and of the type of tenant you are looking for. Click here to view an example Property Details Sheet.

• If propsective tenants call, use this as a chance to fact find them. Questions you can ask are:

1. What are they looking for? What areas are they looking for?
2. Do they have a partner and/or children?
3. How much rent can they afford?
4. Do they have employment / previous landlord references?
5. Do they own any pets?
6. Do they smoke?
7. Do they need parking and / or a garden
8. Do they have a deposit? Can they pay one month rent upfront?

The more information you can gather at this early stage, the better and can save wasting time with unsuitable tenants.  

• Explain that you charge a fee to cover tenant credit checks, inventory checks and the tenancy agreement, and that you require a guarantor (where necessary), along with proof of identification. This won't deter good tenants.

• If you can't help the prospective tenant or don’t have what they’re looking for, don’t say so – rather tell them you have properties becoming available soon and take their details. It’s possible to make a small commission by referring these tenants on to other landlords you may know.

• Try and get all your potential tenants to view on the same day, with 10 minute intervals between tenants. Not only does this save you time, but it also gives the impression the property is in demand and tenants will often decide on the spot. Use a Viewing Appointments Sheet to keep track of things.

• Always make sure you carry out a credit check on the tenant – there are various online companies offering landlord credit checks from as little as less than £10 - a small price to pay for peace of mind.

• If the tenant is interested in taking your property, always ask for a holding deposit. Not only does this ensure the tenant commits to the tenancy but also compensates you for your time should they not progress. Click here for an example Receipt for Holding Deposit Form.

• When meeting the tenant to hand over keys, ensure you view documents proving the identity of the tenant and guarantor and get them to sign the inventory and tenancy agreements. Click here to download an example Shorthold Tenancy Agreement.

Keeping Tenants

• Rather than loose tenants whose property is no longer suitable, keep track of tenants whose circumstances have changed and aim to swap them to another of your properties. You can mastermind a win:win situation by keeping in touch with your tenants and their situation.

• Make sure you take meter readings for gas and electricity, when you purchase a new property and when the tenant moves in or out. This is vital to ensure that you are not charged any portion of usage that is not yours.

• Ensure you inform the following organisations when new tenants move in and/or out:

1. The local council (for council tax)
2. Water service provider
3. Gas company
4. Electricity companies.

Some councils either charge zero or 50% council tax on properties that are currently empty, provided they are actively being marketed, so it is worth telling the council of any void periods no matter how short.

• If a property is empty make sure you inform the water supplier. If it is on a service charge they may end up billing you during void periods.

Upkeep and Maintenance

• Don't be lazy about getting estimates for any repairs and maintenance work that his required. Make sure you approach reputable tradespeople that are ideally part of professional organisations and make sure youget at least 3 independent estimates. Once you have found reliable and reasonably priced tradesmen you can keep using them.

• When a tradesmen carries out a repair, always follow up the job by either contacting the tenant or viewing the work yourself. This will not only help clarify whether the tenant is happy with the repair, but will show the tradesman that you expect a certain quality of work, and that they can’t expect to pull a fast one on you!

• If problems occur with work that has been carried out by tradesmen, ensure you get the same tradesmen to carry out the repair/ remedial work. This way you won’t pay for unnecessary costs by getting new tradesmen in. Keeping orderly records of work carried out by way of invoices etc will help you in this.

• In instances where repairs may be very expensive to carry out, but the repair will not impact the living standards of the tenants, it may be more economical to offer the tenant a reduction in rent, rather than carrying out the repair. Although this is not the best long-term solution, it may be beneficial in the short term, especially where the repair may be better to carry out when the property is vacated.

• If a property is left in a poor state when vacated, consider offering the new tenant (assuming they don’t mind) a small cash incentive to accept the property as is, and do the cleaning themselves.

For more information on this topic, please visit the site store to order your SIGNED copy of Martin's book, 'Teach Yourself: Making Money From Property' available for just £9.99 plus P+P.

Alternatively join me and my team on one of my Special 3 day Property Training Weekends, when we'll teach you what you need to know to become successful as a property investor or developer - and help you avoid costly mistakes.