Landlords are being encouraged to get to know their tenants in a bid to make 2019 a better year for the private rented sector.
A survey conducted by online lettings agency Upad reveals that one of the biggest regrets of experienced landlords when they first started off, was not meeting and vetting prospective tenants themselves.
Some 12% felt their business would have benefitted from a better landlord/tenant relationship and 10% regretted failing to appreciate the value of tenant referencing checks.
‘I’ve always promoted the value in getting to meet a prospective tenant face to face and the fact that almost a quarter of the landlords we questioned regret not investing the time in properly doing so, highlights what an important part of letting a property this is,’ said James Davis, founder of Upad who himself is a portfolio landlord.
‘There are many aspects of a prospective tenant’s character that can be confirmed via legal and financial checks, but traits such as punctuality, appearance and willingness to be honest and open, can only really be ascertained via a good old fashioned face to face conversation,’ he added.
He pointed out that Upad data has previously demonstrated that over 90% of tenants actually like to get to meet their landlord too so it’s a win/win situation which simply requires a small investment of your time.
When asked what one piece of advice they would give to those starting off in the buy to let market, landlords said that a good relationship with a tenant was essential.
‘It’s not always easy to find the time to meet with every prospective tenant but making small sacrifices to free up the time to do so can really pay dividends when you secure a tenant who will remain in situ for several years,’ said Julian Richards who has been a landlord for 14 years.
‘If you’re trying to let a property that is likely to prove particular popular, then an open day event at which you’re present is always a good idea too,’ he added.
Upad’s research also revealed that financial issues continue to be of significant concern to landlords and 11% felt that when they started out in buy to let, they had misjudged the rental value of their property.
It found that 27% felt that the best piece of advice they could give to a new landlord would be to do their sums and ensure they’re prepared for unforeseen financial circumstances. Looking forward to the coming year, a third of respondents stated that continued taxation changes would prove to be their greatest cause for concern.
‘There’s no denying that the days of having enough spare cash to invest in an investment property and then sitting back to watch the rent roll in are, for most landlords at least, well and truly over,’ said Davis.
‘Issues relating to taxation, profitability and overall affordability, not to mention planning for unforeseen circumstances, play on all but the most nonchalant landlord’s minds,’ he explained.
‘However, the fact that forging a genuine connection with tenants continues to stand above financial concerns for experienced landlords serves to demonstrate the extent to which investment in the buy to let market remains a long term strategy, rather than simply a quick win,’ he concluded.
