Vetting & Letting Tips

This section provides Hints and Tips to help you understand and manage the risks faced by Landlords

Every day we help members resolves issues that could have been easily avoided if they had followed a few basic management processes. The harsh reality is we can solve problems but this is no compensation for the stress, time and loss of money endured.

It’s better to vet than regret . There are 140,000 Tenants evicted every year and they will ALWAYS find another landlord. Make sure its not you who gets stuck with the bad apple

see Vetting, Referencing & Credit Check
and Vetting Tenants receiving Benefits, DSS. LHA
How Landlord get caught out “The Classic Deception”

Please read these 30 tips and if you remain unsure – call your members helpline

The biggest way to lose money is being too trusting and failing to serve Notices at the right time. Invalid application for possession due to non compliance with process if in doubt call the members Help line.
Problem Tenants Non paying Tenants, rent arrears and damage to their property .More often than not Landlords DO NOT recover their losses unless they have a guarantor (this is because tenants tend to be less solvent than home owners)
Failing to vet your Letting Agent prior to engaging them read more
If you fail to comply with the Deposit Legislation, the consequences are excessive and punitive potentially three times the Deposit can be awarded to the Tenant has compensation. The Landlord must pay within 14 days.
Failing to Maintain and Repair Many agreements try to make the tenant responsible for maintenance and repair’ such clauses are unfair and unenforceable. and should never be relied on. See Fines & Penalties Failing to Repair
Poor Vetting Process If you are renting to Tenants on benefits you must check their eligibility to receive otherwise Landlords may be paid significantly less than you think.
Inventory If a Landlord fails to prepare a quality Inventory and there is a dispute over damage you have less than 9% chance of the dispute being resolved in your favour. The burden of proof is on the Landlord.
Malicious Claims & Compensation culture understand and manage risk so you avoid being sued by the tenant. Every day we deal with Landlords who fall victim to the Classic Deception and removing a problematic tenant is a complicated affair – be diligent. You are unlikely to recover your legal costs.
Liability for Council Tax and Bills Once the Tenant has moved in inform suppliers and the council this is to minimise such parties pursuing you for bills the tenant fails to pay.
Renting Rooms – Fines up to £20,000 If you are Letting Rooms there are rules Landlords and Agents must abide by such as HMO Licensing.
Fines and imprisonment An Annual Gas Safety check is required to be conducted by an approved Engineer. £100 Fine
An Energy Performance Certificate must be provided to the tenant prior to the tenancy signing
Works Enforcement Notices Ensure that the property is fit for purpose before
habitation. You must keep in working order the premises and any equipment supplied which is specified in the inventory see Landlord Repair Obligations.
Fire Damage – Insurance invalid If you are a new Landlord you must check that you have appropriate authority and permission to let your property . Ensure Electrical Safety and compliance of supplies with Building Regs Part P.
Housing Benefit LHA. If the deposit is being paid by the council you need to be more diligent in your vetting process for there is a high probability the Tenant may have been previously evicted.
Ensure the fire safety of Furniture and Furnishings provided under the tenancy.
Damp – Failing to educate tenants on opening Windows and ensure air vents are not blocked when you do move in or periodic inspections
Failing to issue a Section 21 Notice at the beginning of a tenancy. Means the eviction process could be increased by up to three months.
Not completing a standing order can have a negative impact on cash flow.
SMOKING Fines The common areas in multi-occupancy dwellings see HMO and Smoking in rented premises
Compliance with legal requirements Prior to issuing Keys you must be in possession of a signed tenancy agreement (an AST) and such should be witnessed if so required. Otherwise, you may have to incur additional legal costs securing possession of your property.
Targetted Advertising Find the best means of advertising for each of your properties – try different methods such as newspapers, internet or other methods. When you find one that works stick with it.
Appealing adverts Target the correct tenants with accurate descriptions of the type of tenant you are looking for and description of the property.
Vetting Develop a screening process for when tenants call in response to your adverts placed. Typical questions may include: what exactly are they are looking for, do they live alone or do they have a partner and/or kids, what is their rent budget, do they need to be located in a specific area, do they have references for employment / previous landlord/s, do they smoke, have pets, do they need parking, if so how many vehicles, do they require a garden, do they have a sufficient deposit, can they pay 1 month rent upfront etc. By getting answers to these questions upfront you will help prevent wasted time, effort and costs. For instance, finding out your new tenant has two male Rottweiler’s the day before they move into your newly re-carpeted property may not be suitable for you! Charge an admin fee Mention that you charge a fee to cover costs such as a tenant credit check, provision of an inventory and tenancy agreement, and that you require a guarantor (where necessary) along with suitable proof of identification.
Take their details If for whatever reason you don’t have what they are looking for, don’t tell them that – rather tell them you may have properties becoming available soon and take their details. It is always surprising how often existing tenants terminate tenancies at short notice and having prospective tenants on hand can save you money. It’s also possible to make a small commission by passing these tenants details on to other landlords you may know.
Plan viewing To save you time, try and arrange all viewings for a specific property on the same day with 10 minute intervals between viewings. This also gives the impression the property is in demand and will encourage tenants to make a swifter decision.
Credit Check Always carry out a credit check on the tenant! There are various services available online at reasonable fees and this will certainly be worthwhile in ensuring quality tenants are placed. If you don’t you are only exposing yourself to unnecessary risk.
Holding deposit If the tenant is interested in taking your property, always ask for a non-refundable holding deposit. This ensures the tenant commits to the tenancy (it is always a nice surprise when a tenant cancels the day before they are to move in) but also compensates you for your time, and costs if the tenant lets you down.
Who are you renting to Prior to handing over the keys to the tenant ensure that you have seen documents showing proof of identity for the tenant and guarantor and get each of them to sign the inventory and tenancy agreements.