We have seen this for years now, and it is becoming more of a problem.
More buy-to-let investors are joining the market with the dream of easy riches. The influx of investors is great for the economy and will help turn the property market around sooner than most skeptics might think.
The problems arise when investors come to the playground without understanding the whole process.
Over the next couple of days we will go through some to the major shortfalls (excuse the pun) that we see investors having
The first mind set that has to change is the need to let the property as soon as possible so that the rent can cover the bond.
Although the fundamentals of this strategy are sound, the problem is that in their hast the landlords neglect to take the time to do that right checks. 95% of the problems come from neglecting to do a credit and background check on the tenant. This small necessary inconvenience is definitely worth its troubles.
The simple steps are,
1. Properly screening. An undesirable tenant will often have a poor rental and financial histories.
2. Landlords should review previous landlord relations.
3. Credit checks and income. It is probable that if they have not met their obligations with previous landlords, then chances are that they will repeat their behavior with you landlords.
4. Screening also involves verifying that the person who is applying is the same person that submits credit/criminal info for screening. A picture I.D. should be cross-referenced with the application.
5. Landlords must make sure that there are no omissions, inaccuracies or inconsistency in the actual application.
Due diligence will certainly save you much money and stress.
Don’t fall into the mind set of “Quick got to get a Tenant now”
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