Different types of properties will appeal to different people, so it is important to understand your market in order to find the right tenants. Generally, the type of tenant you choose may affect the duration of their tenancy period and they fall under the following categories:
- Young professionals: Young professionals often fill their time with working and socialising, so may require simple, yet modern living accommodation. Many will share with friends, before buying a place of their own
- Families: Families are often looking for larger spaces that are unfurnished and may bring many personal belongings with them, however some may wish to move into a readily furnished property, especially if they are coming from abroad
- Corporate: When a company takes a tenancy for the benefit of one or more of their employees (also commonly referred to as a company let). This type of tenant may have had their relocation paid for by their company.
- Students and graduates: Students will usually be looking for furnished accommodation that is near their place of study or work placement. Depending on their academic circumstances, they may rent long or short term
- Older singles or couples: This group of tenants includes retired couples. The tenants spend much of their time at home and can be long-term tenants
- Housing benefit (Local Housing Allowance) recipients: Tenants on housing benefits often occupy rental properties that have a lower capital value to rent ratio. This can be attractive to some landlords, as the return on investment is typically higher
Your decision as to whether or not tenants will be permitted to smoke in the property or have pets living with them may affect a prospective tenant’s decision to rent the property.
Using letting agents to find the right tenants
A letting agent can be used to help you recruit and screen potential tenants. The screening process should include credit checks and references and is best carried out via an independent referencing agency.
At KFH, for instance, you will deal with an experienced local lettings team who know the area well. They will keep you informed on any and all prospective tenants interested in renting your property and what they thought about your property after the viewing. Your lettings team will show prospective tenants around the property on your behalf, making sure it is convenient for you and any current tenants.
To speak to KFH about assistance with letting or managing a rental property.
Households in multiple occupation (HMOs)
House in Multiple Occupation (HMOs) defines a property where certain conditions apply. A standard HMO will occur when three or more people (including children), who do not form one household, occupy a property. Although such a property does not require a licence, it will need a satisfactory Electrical Installation Condition Report (EICR).
A mandatory HMO licence will be required when five or more people, who form more than one household, occupy a property. A landlord must comply with the conditions of the licence.
Some local authorities have also introduced additional HMOs licensing. Typically this will be for three or more people who form more than one household (as per the standard HMO above) but requirements will vary from local authority to local authority. This type of let will require a licence. An additional HMO may be required in a certain area of a borough, or may cover the whole borough.
Some local authorities may also introduce selective licensing across part or all of the borough. The landlord may need a licence even to let to a single occupant.
Licence costs vary considerably and landlords should check with the relevant local authority.