Tips to Prevent Rent Arrears
Despite tenant application processes, landlords are still faced with unreliable tenants, leading to late payment of rent and unpaid arrears. Here are six preventative methods you can introduce to make sure you’re first in line on your tenants’ pay day. The measures that you put in place will depend largely on whether you are renting to long term tenants or looking to offer Cheltenham Student accommodation such as that from https://www.yourperfectpad.com/
1. Tenant Referencing
Seek the help of a tenant referencing agency. They will thoroughly check out any prospective tenants for you. Their report will include a credit check and previous address history. Additional checks are possible such as requesting the last three months of pay slips or bank statements showing a regular income. Set up a direct debit to make it more difficult for your tenant to find an excuse for late payment.
2. Rental Agreement
Make sure you have a legally binding rental agreement in place. This should be signed by the landlord and prospective tenant and witnessed by a third party. The agreement should outline the rental price, frequency of payment and the length of the agreement. Make sure you register any security deposit with a government-backed deposit scheme within three months of receiving it. Find out more about deposit schemes here: https://www.gov.uk/deposit-protection-schemes-and-landlords.
3. Property Inventory Software
Even if your property is unfurnished, it’s important you prepare a full property inventory which lists all fixtures and fittings. Remember to highlight any existing flaws within the property such as cracks in tiles or work-tops, decorating issues or stains on carpets. Property inventory software takes the hard work out of inventory preparation and provides you with a before-and-after comparison with the click of a button.
4. Visit the Tenant
Maintain regular contact with your tenant and arrange a visit to inspect the property every 12 weeks. This way you will build a rapport with your tenant through face-to-face contact, making them less likely to let you down when the rent is due.
5. Rent Guarantee Insurance
Choose an agent that offers a rent guarantee scheme. Not only will this cover you for unpaid rent, but a percentage of your legal fees will be covered too.
6. Low Rent
Keeping the asking price below the market value for your property will encourage tenants to pay on time and also stay longer.