How To Find Great Tenants! And Minimise Your Void Periods

Being a landlord can be tough sometimes. The wrong tenant can give you endless headaches, including non-payment of rent. And how can you make the most of those times in which your properties are left standing empty?   In this episode, Simon gives you some great advice about how to attract a better quality of tenant, effective ways of finding those elusive tenants, the process you need to follow when you find one, and the ways in which you should pursue a tenant who owes you money, even years after they’ve moved out.   KEY TAKEAWAYS   Especially when you’re starting out, managing the property yourself might seem like the best option.  Property Manager fees can make a huge dent in your nascent profits.  You may feel as though you can provide a better service to your tenants than an already busy Property Manager can.  You may feel as though you want every opportunity to get to know your tenants.   If you are hoping to found a property empire, then you can often spend more time managing them than looking for new ones. In this case, it’s advisable to get yourself a good property manager.   Making sure your properties are full at all times, is a fundamental keystone of a successful property concern. Empty rooms and empty houses is literally money down the drain.   Paid adverts for your properties on websites usually have a more prominent position. Free ads slip down the listings very quickly.   Once a prospective tenant gets in touch, make sure you respond to them rapidly. It’s likely that they will be looking at multiple options, and another landlord may beat you to it if you take too much time to respond.   Current tenants are usually a great way of finding out if anyone in the area is looking for a rental. This can be especially useful if someone is moving out. A simple query will often result in the name of a friend looking to rent, or someone in search of an upgraded form of accommodation.   Letting agents and local employers are often a good source of potential tenants. Incentives can be offered in the form of a finder’s fee.   Arranging viewing with tenants is often time-consuming, so make sure you use your time effectively. A text on the day is useful in determining if the tenant is still interested, and can save you much time if they are not planning on attending. Your time is valuable.   Tenants on a viewing should be asked to bring along their most recent wage slip, proof of address, National Insurance Number and form of photographic ID. This will save you both lots of time. There’s no point in taking a property off the market if the tenant can’t afford it, or they’re not who they say they are!   Asking for a guarantor at the initial stages will be invaluable in the future in case your tenant fails to keep up with payments to you. A guarantor should ideally own their own property, which can be used as an incentive to make sure you get paid.   A How To Rent Guide should be provided to your tenant when they movie in. This can be downloaded from gov.uk and provides them with a complete guide to the legalities of their tenancy with you.    Other essential materials that need to be provided by you are a copy of the Energy Performance Certificate, a Gas Safety Certificate and a copy of your HMO Licence (where applicable).    A Right To Rent agreement must be signed by your tenant. They must also be made aware of the inventory of the property. Another useful resource at this juncture is the National Landlords Association, which can provide accreditation for you.   In the event of non-payment, Simon advises the following procedure: On the day of the non-payment, a simple text to advise that payment has not yet been paid. The day afterwards, alert your tenant to your previous communication. After seven days, a letter to advise that rent is now overdue and must be paid.  After fourteen days, another letter to advise that rent is now overdue and must be paid. After twenty-one days, a further letter to advise that rent is now overdue and must be paid. After two months of arrears, it becomes possible for you to pursue payment through legal means.   Removing a tenant from your property can be difficult. Try to work with them, but if this isn’t possible, use a solicitor, who will be well versed in due process.   Claims can be sought through the Money Claim Online service. This allows you six years to claim the monies owed to you. So long as you have their name and National Insurance Number, you can track them down, perhaps in the future when they have more to lose by not paying you.   The best way of reducing the void periods between tenants, is always to be a good landlord, first and foremost. One of the main reasons for people moving on, is that they are not being taken care of by their landlord.   BEST MOMENTS   ’The more properties you have, the more and more time managing them takes’   ‘Very often, people like the idea of bringing someone they know into the property, rather than a stranger’   ‘Most people are lazy. If they see your property and it’s right for them, they’ll go for it’   ‘If someone hasn’t paid you, don’t worry. You can still get your rent back’   ‘Be responsive. get jobs done quickly'   VALUABLE RESOURCES   ·     Property Magic: How to Buy Property Using Other People's Time, Money and Experience by Simon Zutshi ·     property investor’s network (pin) - www.pinmeeting.co.uk iphone:  http://bit.ly/pinAPP1 Android https://bit.ly/pinAPP2   How To Rent Guide From GOV.UK - https://www.gov.uk/government/publications/how-to-rent National Landlords Association - https://www.rla.org.uk/ Money Claim Online - https://www.moneyclaim.gov.uk/web/mcol/welcome ABOUT THE HOST   Simon Zutshi, experienced investor, successful entrepreneur and best-selling author, is widely recognised as one of the top wealth creation strategists in the UK. Having started to invest in property in 1995 and went on to become financially independent by the age of 32. Passionate about sharing his experience, Simon founded the property investor’s network (pin) in 2003 www.pinmeeting.co.uk.    pin has since grown to become the largest property networking organisation in the UK, with monthly meetings in 50 cities, designed specifically to provide a supportive, educational and inspirational environment for people like you to network with and learn from other successful investors. Since 2003, Simon has taught thousands of entrepreneurs and business owners how to successfully invest in a tax-efficient way.  How to create additional streams of income, give them more time to do the things they want to do and build their long-term wealth. Simon’s book “Property Magic” which is now in its sixth edition, became an instant hit when first released in 2008 and remains an Amazon No 1 best-selling property book. Simon launched his latest business, www.CrowdProperty.com, in 2014, which is an FCA Regulated peer to peer lending platform to facilitate loans between private individuals and property professionals.   CONTACT METHOD Contact and follow Simon here:   Facebook: http://www.facebook.com/OfficialSimonZutshi  LinkedIn: https://www.linkedin.com/in/simonzutshi/ YouTube: https://www.youtube.com/SimonZutshiOfficial Twitter: https://twitter.com/simonzutshi Instagram: https://www.instagram.com/simonzutshi/