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    Home/News/How to select the best tenant when inundated with offers

    How to select the best tenant when inundated with offers

    Lettings

    When a property is listed for rent, there is currently no shortage of tenants vying to hopefully secure the home. The demand has been quantified by Rightmove, who says the number of enquiries each available rental property is receiving is 17.

    11 months ago
    How to select the best tenant when inundated with offers

    When a property is listed for rent, there is currently no shortage of tenants vying to hopefully secure the home. The demand has been quantified by Rightmove, who says the number of enquiries each available rental property is receiving is 17.  

    The byproduct of sustained demand is rental values that keep nudging higher. Rightmove’s figures show the average advertised rent outside of London has achieved a new quarterly record of £1,314 per calendar month (pcm). Even in London, which has a fickle micro-market all of its own, rents have increased to an all-time high of £2,661 pcm.  

    It’s easy to assume that, when selecting the best tenant from 17 or more candidates, it makes financial sense to choose the person willing to pay the highest rent. Money, however, is not the only way to separate tenants.   

    Instead, choosing the best applicant when inundated with offers requires a holistic approach. As a letting agent, our meticulous referencing process and credit checks will help you make an informed decision, taking multiple factors into account.  

    If you find yourself lucky enough with multiple offers of a similar value, or want to establish whether an outstanding offer is too good to be true, it is worth considering the following in periods of high demand.  

    Ongoing financial reliability

    Agreeing a monthly rent is one thing but having the means to pay it every month is another. Referencing and a conversation with previous landlords will help establish whether the tenant has a history of missed or late payments, has a poor credit score, is in employment and what their income is. A landlord may also look more favourably on a tenant if they can provide a reference-checked guarantor, or has volunteered to pay a period of rent upfront.  

    Behaviour that won’t bite 

    It’s a false economy to accept the tenant with the highest offer only for them to cause malicious damage to the property that costs more than the deposit to put right. While it is impossible to predict the future behaviour of a renter, a previous landlords’ experience will give a good indication of how they conducted themselves in past properties. As well as damage, behaviour traits to be mindful of include anti-social behaviour and illegal activity – if this has occurred in the past, it may occur again and cause the landlord a different kind of hassle.  

    Longevity: staying for the duration

    A churn of tenants can create repeat administrative costs for a landlord. For continuity, it may be wise to opt for a tenant looking for a long-term home. We are mindful, however, that a fixed-term tenancy agreement should potentially include a break clause that will allow either party to give notice earlier than the set end of the tenancy. As a side note, we are monitoring the Government’s plan to scrap fixed-term tenancies in favour of periodic ones.   

    If you would like to discuss renting out a property you own, with details on our referencing process, please get in touch

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