Choosing a reliable tenant. That is without doubt one of the toughest tasks you face when renting out your investment flat. Whether you are paying off a mortgage or simply need a steady passive income, problem tenants can cause you real trouble. Let's take a look at how to pick the right one and what to watch out for.
Dozens of enquiries in a single day?
These days, anyone with an internet connection can contact you through a property listing portal. So if you are planning to advertise your flat for rent online on your own, brace yourself for some patience. In attractive locations it is not unusual to receive dozens of messages a day from people interested in renting. Don't rush into anything. You need to filter the messages and pick out only the serious applicants. Many people cast their net wide and contact several advertisers in your area in exactly the same way. A simple message asking about the prospective tenant's requirements and circumstances is often enough to filter out the serious candidates. Half of those you ask probably won't reply at all. To save your own time, it also pays to make your listing as specific as possible so you avoid a lot of questions.
Before you invite them into your home
Let's say several serious applicants have come forward. How do you now pick the right one? Before you start arranging viewings, it is of course important to do a bit of screening among the applicants. Ask them a few questions, for example:
- How many people would be living in the flat?
- Do the prospective tenants have stable jobs?
- Do they have pets?
This quick screening will help you form a better picture of the prospective tenants from the outset and can also save you precious time. It is definitely better to find out about a tenant in advance than to waste time on a viewing. Once you have their answers (and have established that the applicants suit you), you can move on to the next stage of the process: viewings in person. Invite them into your home – or, more precisely, into the flat you intend to rent out to them. That is the only way to see for yourself and get a personal impression, which is of course important too, so you know who will be providing you with a steady passive income for years to come.
What groups of applicants are there and what are their pros and cons?
- Single people: With single people there is a slightly higher risk that they won't be able to pay the rent if, for instance, they lose their job or go on sick leave, because they have no partner to support them financially. That said, it is very individual and depends on the tenant's job (and the salary that goes with it). That's why it is a good idea to find out a few things about a tenant before you let them move in – what they do for a living, for example.
- Couples with children: Couples may have a more stable income, but you need to think carefully about whether the walls of the flat are soundproof enough. Although most neighbours are tolerant, some might complain about noise.
- Students: With students, the advantage is that their parents support them financially, which gives you a stable income. The drawback is that they usually stay only a few years – for the duration of their studies. They also often want to end the tenancy before the summer holidays or when they leave for an Erasmus placement.
- Foreigners: Many landlords speak highly of foreign tenants. Language or cultural differences can, however, be a barrier. Do make sure first that if you rent your flat to foreigners, they will get along with the neighbours without any problems.
There is no such thing as the ideal tenant
So who is the right one? A single person, a young couple, a family or a foreigner? Unfortunately there is no single right answer to that question. There simply is no ideal tenant. Generally speaking, it will be someone with a good job or a stable income. We all have slightly different preferences, so of course you also have to go with your instinct and choose the applicant you find most likeable. After all, this is the person you will be dealing with over the coming years on everything to do with your flat, whether it's changing the locks, a burst pipe or a new boiler. If your head is spinning after reading this article and you simply don't feel up to it, a property management company (ours, for instance) can save you the whole process.
A management company will solve the problems for you
At Flat Service we do everything we can to save our clients time and worry. How does it work? We take care of your entire rental from start to finish. No more hassle looking for tenants. No need to deal with photos, post listings or respond to enquiries. We'll find the tenant for you! We have been on the market for over 20 years and we know how to vet applicants so we select those who will be reliable in paying the rent. We check all publicly accessible registers in the Czech Republic and Slovakia, as well as the SOLUS register. So we do our utmost to eliminate potential non-payers right at the start of the process. In any case, even if such a situation does arise, you have nothing to worry about. At Flat Service we take responsibility for problem tenants. We know your rights and we negotiate on your behalf to put things right as quickly as possible. We stay in regular contact with your tenants. If a tenant is planning to move out, for example, we handle everything ourselves. And we make sure the gap between tenancies is as short as possible, so there is no interruption to your income from the property.
Leave the hassle of renting to an agency
If you are considering entrusting your flat to a professional management agency, take advantage of our free consultation. Before you accept any offer, get in touch with us free of charge and with no obligation. Call +420 277 000 330 or email info@flatservice.cz and arrange a meeting in person. During the meeting we will answer any questions you may have, and within two days you will receive a quote showing exactly what property management will cost you and what your realistic rental income could be.
