It may seem like an obvious thing to state, but knowing who is living in your property is a key part to any successful investment. Finding long-term, reliable tenants is a great way to ensure your property is always generating income, with minimal void periods, and that your tenants receive a secure and safe place to live.
Always make background checks
Particularly if you may have been renting to someone for a long time, it’s sometimes easy to forget that things need to be kept as official as possible.
In addition to being able to prove you’ve made the checks required by law, you’ll have peace of mind knowing you won’t be faced with potential fines or legal costs associated with letting to someone who shouldn’t be there, or might end up damaging your property.
Don’t let the tenancy run itself
Is your tenant sub-letting without your knowledge, selling or growing illegal substances, bringing pets in or decorating without permission? With no way to answer to these questions, you could be faced with the financial implications of the damage, including loss of rent.
Plus, with the type of person who might be wilfully damaging the property, it makes sense to make sure everything is in line with regulations and kept above board, so you and the tenant both know where you stand.
It could be dangerous for any sub-tenants or lodgers
With regulations in place to protect tenants, but many less so concerning illegal sub-lets or lodgers, it makes sense to keep everything on the books and in writing. Is your tenant sub-letting lawfully, or providing fair rights to any lodgers in the property? How can you find out?
Many people can find themselves in situations where they’re in quick need of housing or short-term lodging solutions, and without knowing who is in your property, it could be them feeling the impact of a lack of proper housing contract, such as by losing deposits that may have been taken illegally, physically or verbally abused, and being evicted unfairly.
Plus, you could be left with the resulting financial costs of replacing deposits that weren’t protected in a scheme, as well as damage due to misuse of the property.