Tenant Screening Process For Professional HMOs
Move in the right tenants, and you make money! That means credit reports. We had a young lad who was so pleasant to move into one of our Professional HMOs in Salford. However as we always do, we run a credit check. Bingo, Mr Sweethart had a recent Bankrupcy.
Move in the wrong tenants, and you lose money! You will lose sleep and obviously money!
It is critical you do NOT just move in a tenant because they have a security deposit and the first month’s rent. I’ve made enough mistakes regarding tenant selection—and I’ve also paid the price.
During your due diligence, make sure the management company or manager has pre-screened any current tenants for your Professional HMO. If prospective tenants have not been pre-screened, then you have to assume that these tenants have no vested interest in protecting their security deposit or credit.
We do a mix of Professional HMOs, Conversions and social HMOs. The Social HMOs are much easier as we have long contracts and no tenant screening needed. However they are hard to source and get approved.
No free lunch in Property.
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