Tessa's Ten Top Tips for landlords when signing up a new tenant
- Get as much information from the prospective tenant as possible before considering granting them a tenancy. It is best to have a standard form for this, such as our online Tenants information form. You should also check their identitity
- Take references, in particular from employers, former landlords and the tenants bank. However references can be forged so always double check them. You should also get a report from a credit reference agency.
- Remember also that references may not tell the whole truth, so do not be afraid to trust you own 'gut feeling'. If you feel uneasy about a tenant, think twice before letting them into your property.
- Always take a months rent in advance and the tenancy deposit up front and do not hand over the keys until this payment has cleared through your bank. The only exceptions to this rule should be when the tenant has the benefit of a local authority bond or guarantee.
- Ensure that the tenant has signed a proper form of tenancy agreement and, again, do not hand over the keys until this has been done. Make sure you hold a tenancy agreement with their original signatures - not a faxed or scanned copy.
- Unless you know the tenants well and are confident that they will not cause any problems, do not grant an initial fixed term for more than six months. You can always grant them a longer fixed term at the end of this period if they prove satisfactory
- If you are letting to a housing benefit tenant, ensure that the tenant signs a letter of authority to the Housing Benefit office authorising Housing Benefit to give you information about their application, before you hand over the keys. If the tenant is in receipt of Local Housing Allowance (where the rent cannot normally be paid direct to the landlord) see if the tenant can get his rent paid to you via a credit union account - often the housing allowance can be ringfenced to prevent it being spent elsewhere by the tenant.
- If possible, get the utility accounts put into the names of the tenants, so you are not responsible for their bills.
- Get a signed standing order form from the tenant for payment of the rent, before handing over the keys
- Be very wary indeed of 'desperate' tenants who want immediate accommodation and who ask you to take them in before all the various checks have been carried out, or the documentation signed. Experience has shown that these often turn out to be nightmare tenants who are best avoided..
Notes:
Members can read FAQ and articles on all the points covered here.
