Tips for overseas investors: how to get the best tenants
The importance of choosing your tenants wisely cannot be overstated. But how do you choose the best possible tenants when you are living overseas?
There is no doubt that your distance from the property will make your task more challenging. But modern-day communications have made the world smaller. It is possible to market your property and communicate effectively with potential tenants, even when you are thousands of miles away.
Widen your choices
Your chances of finding a good tenant will be greater if you have a sensible number of applicants to choose from. Market your property as widely as your budget allows, taking advantage of all opportunities, including social media. Remain proactive by checking ‘room wanted’ ads and then approaching promising prospects.
Create an application form
Before advertising your property, think about the questions you wish to ask each prospective tenant, the documents that you will be requesting from them and the checks you need to perform. Creating an application form which all potential tenants must complete will make comparisons easier, reduce the number of documents that you need to examine and prevent you from forgetting to ask a crucial question or to request an important document.
Making contact
In an ideal world, it is extremely beneficial to meet your applicants or at least those that you have shortlisted. In the new Covid world this might not be possible, but by using a great managing agent and video call technology, which we have all gotten used to over the last couple of years, you can speak to each applicant via a video call (e.g. Zoom or Skype). Your gut instinct could prove important and it is difficult to make sound judgements based on documents alone.
Perform your checks
It is vital that you examine a tenant’s application in detail and perform the appropriate checks. Ask for proof of their income and copies of their bank statements. Some applicants may resent this intrusion and so a refusal to supply bank statements doesn’t necessarily mean that the applicant is unable to afford the rent. However, if you can obtain bank statements you will enjoy greater peace of mind.
Seek references from any previous landlords and follow them up. References must be checked as they may not be genuine. If your applicant is a first-time renter, ask for a personal reference, preferably from someone of independent standing, such as an employer, teacher or lecturer.
It is worth investing in a credit check once you have identified a promising applicant.
An identity check is vital as it is your responsibility to establish that your tenant has a 'right to rent' in the UK. You could face a fine of £3,000 if you do not check the status of your tenant. Tenants must provide original documents and you are obliged to check these in the presence of the tenant. Alternatively, you could engage a letting agent to perform the checks for you.
Lettings Agents
It will make your life considerably easier if you engage the services of a letting agent to manage the entire process on your behalf. A letting agent local to your property will have in-depth knowledge of the rental market in your area and may already have the perfect tenant for your house or apartment on their books. They will know where to market your property to yield applications from good prospective tenants and have the expertise to make all the required checks and adhere to the latest laws and regulations.
“Our house in London has been rented out to tenants for a number of years now, whilst we have been living abroad, and that was initially managed by a well known high street estate agency and in recent years by Jo & Co - the difference since Jo took over has been incredible. Not only are her fees a lot more reasonable, but we trust her to manage all aspects of the property for us, from finding new tenants to helping with the lease and any repairs or other issues to dealing with the tenants leaving the property (which was also under unusual circumstances due to COVID).
Jo has helped with all of this, professionally and promptly, taking the pain out of having to deal with it ourselves and without us having to spend a fortune in the process (every dealing we had with our previous agents was so difficult we ended up dealing with it ourselves from abroad whilst paying them a huge amount!)”
At Jo & Co Property Management, we have experience of working with many overseas investors, managing the letting of the property on their behalf. If you are seeking tenants for a property in the South London or North Surrey areas, we can help you source reliable tenants and give you the peace of mind you are looking for. There is much we can do to assist you, even if you wish to remain involved in the process of choosing your tenants.