Avoiding a Nightmare Tenant in Your Properties and HMO Property
It would be nice to get good tenants in your property and HMO property. You can do your credit checks…references blah ..blah blah…However you can have surprises. We have had an attempted suicide in one of our HMOs and other drama. However I want to share with some of the reddest of red flags out there and to avoid them.
You have a so called guarantor who wants to put his girlfriend or whatever in the property. On the surface, all could seem to check out and you might have a good renter. Imagine, he was “renting for his pregnant girlfriend.” He didn’t intend on living at the property, but might sleep over from time to time. You don’t do a background check on the girlfriend & she supposedly moves in. Actually no one ones in except workers in a cannabis farm. To say the least, a nightmare in the making. Your property gets trashed.
Be aware of situations like this…Another nightmare situation could be the cash paying tenant. We do not allow this. We only want bank transfers.
More so, references …references….and more references. I heard about a story of tenants that seem to keep on breaking things…like everything. Boilers…would go repeatedly. You really need to screen your tenants and even then they can go bad. Being a successful landlord isn’t just owning property that you let someone else live in. You need reserves because something always breaks. Breaking even by charging the same amount as you pay for mortgage and taxes will always be a losing proposition.
Part of our business is the social housing hmo. These are on 5,000 a year maintenance coverage by the company we rent to. There is no management…or voids. There is nothing perfect as these social housing hmo also have their particular set of issues. The key is balance.