Who is the Perfect Tenant?

Latest Landlord News by: Madalena Penny.

Landlords may well ask themselves where they can find the perfect tenant.  If there is a factory creating clones of the perfect tenant – tenants who always pay the rent, sort out building, electrical and plumbing problems themselves, never ask for anything, are respectful, in gainful employment and treat their homes with nothing short of love and care.

Once landlords may well have had more chance of discovering Shergar or Lord Lucan than this mythical, philosopher’s stone of tenants, but through the winds of fortune, the times they are a changing.

The economic factors leading to tenant-demand and the rise of the new private rented sector has raised the profile of residential renting and has put it on a parallel path with our European cousins.  According to research conducted by Spareroom.co.uk, the numbers of people turning to private landlords has rocketed by a staggering 61% compared to the same quarter in 2009.  Many of these new tenants entering the market are potential first time buyers deprived of mortgages, a generation left abandoned at the wayside on route to home-ownership.

While Spareroom.co.uk reveal a 15% decline in available housing stock on the market, statistics from Rightmove indicate an 18% decline, but both conclude that tenant-demand is indeed outstripping supply, leaving homes in the private sector, hot property.  Unfortunately for tenants in search of such residences, they face competition from many other applicants vying for the same property.

With such few properties entering the market, applicants’ face getting gazumped if they are not rental-savvy enough.  According to Findaproperty.com, one in eight applicants have been gazumped in the past 12 months.  Even submitting a deposit to the landlord or agent is not confirmation enough if another applicant offers a higher bid for the property.

Advice from Legal 4 Landlords warns tenants to act quickly. Lettings affiliates for the legal eagles have revealed that some properties are taken within hours of entering the market.

  • Applicants should contact letting agents regularly and ask for a callback as soon as a suitable property comes available, preferably before it is advertised.
  • View the property as soon as humanly possible.
  • Make an offer straight away if you like it.
  • Ensure all your documentation is at hand, references, bank statements, guarantor details etc.  Take them to the viewing so that time can be saved.
  • Make sure you have the deposit at hand before you view a property, you’re more likely to get a positive response from the landlord, if your organised enough and solvent enough to produce an immediate deposit.
  • Sell yourself to the landlord.  If you present yourself as a responsible, professional person, you’re more likely to win over any prospective landlord.

Because of the unprecedented rise in tenant-demand, landlords can cherry-pick the very best tenants now.  Legal 4 Landlords, new wave leaders of the lettings industry are strongly indicating that new products created and adapted to current market forces coupled with scarcity of available housing has protected landlords from the affects of bad, irresponsible tenants.

Tenants are more likely to behave responsibly; the upsurge of would-be first time buyers flooding the rental market is weeding out the irresponsible tenants that have plagued landlords in the past.  By applying thorough tenant referencing, a secure rent guarantee scheme and a good tenant-landlord relationship, landlords, letting agents and tenants respectively can achieve a win-win situation.