Top Tips for Overseas Investors looking to attract the Best Tenants

By HopwoodHouse, 29 March, 2018

One of the biggest fears that haunt overseas investors looking to invest in the UK property market is the idea that they will attract troublesome tenants that don’t keep on top of rental payments and cause damage to the property that is beyond repair.

Although this type of tenant does exist, they are largely outweighed by the good tenants, and so this should be a focus of any overseas investors looking to make an buy-to-let investment. The right approach for overseas investors would be to take the right steps to ensure that they attract good tenants, and this can be done in many ways.

Keep up to date with Current Laws

Landlords should always be aware of their responsibilities as a landlord, as well as the laws that surround the property market and landlord industry. By conducting extensive research, you will be able to know exactly where you stand, and you will be able to use the law to your advantage when trying to attract new tenants. Certain points that you should be knowledgeable about include eligibility to rent and tenant deposits. Although UK laws are constantly changing, you should keep up to date with them, as not only will this help you to know exactly where you stand, but it may also prevent you from taking on the wrong tenants.

Charging the Correct amount of Rent

Ensuring that you charge the correct amount of rent is very important to your search for tenants, and ultimately eliminating periods of time where you are without tenants. You should have an assessment of the property to get an idea of the amount of rent you will be able to achieve for your UK property investment, as just deciding upon a number without any real guidance would be the worst thing that you could do. If you randomly choose an amount that is too low then you may attract a bad type of tenant, yet if you choose an amount that is too high then you aren’t likely to have much interest.

Target the Right Tenants for the Property

Different property types are typically better suited to certain types of tenants, and so you or your property manager should be looking for or marketing to certain audiences. You should be able to determine the type of tenants you are hoping for, and look to try and appeal to them in any way that you can. Once you have some interest, you or your property manager will need to run through the relevant vetting procedures, determining whether they are able to live within your property.

Handling Tenant Deposits

There are now strict laws in place to protect a tenant’s deposit, meaning that it is now a requirement for the deposit to be placed into a Tenant Deposit Scheme, keeping it separate from any other money, as well as properly protected. The deposit should be highlighted within the tenancy agreement, with special consideration given to how it will be kept, and conditions for its return to the tenant. The tenancy agreement will outline exactly what is required of both the landlord and the tenant, helping to keep everything in order.