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 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)
Households with Multiple Occupation (HMOs) defines a property where certain conditions apply. A basic HMO will occur when three or more unrelated people (including children) occupy a property. Such properties do not require a license but will need a satisfactory Electrical Installation Condition Report (EICR).
A licensed HMO will occur when five or more non related people occupy a property which is over three or more storeys. Such properties need to be licensed by the local authority and comply with its conditions for the license. Typically a license costs between £500 - £1000 and lasts for five years. There are heavy penalties to incur you let an HMO without a license when one is required. Some local authorities also have selective have options or additional licensing schemes and set their own licensing requirements.