If you are a couple of degrees out at your starting point it could mean that you are a massively off track when you get to the finish line. Only a couple of degrees can mean the difference between being a successful landlord with high yielding properties and a landlord who just seems to get by each month.
With this in mind, I wanted to share with you a new idea we are implementing in our tenant vetting procedure which came through a tenant lying on their application this week. This change in our vetting procedure will defiantly allow us to weed out more bad tenants and have an even higher conversion of obtaining the best tenants in the market place.
What is an inventory?
There are many definitions of an inventory for rental purposes but according to the AIIC (Association of Independent Inventory Clerks) “an inventory is a binding legal document that provides an accurate written record of the condition and contents of a property at the beginning of a tenancy”.
ARLA (the Association of Residential Letting Agents) on the other hand describe an inventory as “an absolutely essential document that provides a written benchmark, which should be amended, updated and recreated before the beginning of each new tenancy. A properly constructed inventory/schedule of condition details the fixtures and fittings and describes their condition and that of the property generally”.
Over the past few years there has been an endless amount of articles written on the importance of securing direct payments from local councils. If you attend property conventions, forums or seminars you are often lead to believe that direct payment is the central key to minimising your risk with LHA tenants. So much so that there now seems to be a growing culture of misconception within the industry for those who are new to property investment or to dealing with housing benefits as direct payment is portrayed as the holy grail of LHA. But is this really the case? Or is there more to it?
Securing an LHA tenant – The increasingly stereotypical route
Open up the property section of your local newspaper or search through an online portal today and you will see that more and more letting agents are offering their properties to LHA tenants with enticing offers such as NO BOND REQUIRED or MOVE IN FOR FREE. These offers are prime examples of a business model which is based on securing tenants quickly by removing as many barriers as possible that would otherwise usually prevent them from being able to secure a property. Aside from the monetary factors unfortunately for landlords the other barriers tend to relate to vetting procedures which more often than not are relaxed or none existent. This typically results in tenants being secured solely on their ability to qualify for direct payments rather than on their previous rental history and individual merit.