As a landlord renting out a House in Multiple Occupation (HMO), it’s essential to screen your tenants carefully to ensure that you’re renting to responsible and reliable individuals who will respect your property and pay their rent on time. Here are some tips on how to screen tenants carefully for your HMO:
- Use a tenant application form
Provide potential tenants with an application form that they must fill out before you consider them for tenancy. The form should request information such as personal details, employment status, income, and previous rental history. Use this information to evaluate whether the tenant is a suitable fit for your property.
- Verify employment status and income
Ask for proof of employment status and income to ensure that the tenant has a steady income stream and can afford the rent. Request documents such as recent payslips or an employment contract. As a rule of thumb, a tenant should earn at least 2.5 times the monthly rent.
- Request references
Request references from previous landlords, employers, or personal references. These references will give you an idea of the tenant’s character, reliability, and how they treated their previous rental properties. If the tenant is hesitant to provide references, consider it a red flag.
- Conduct a credit check
Conducting a credit check will help you assess the tenant’s credit history, including any outstanding debts, missed payments, or bankruptcies. This information can give you a clear picture of the tenant’s financial responsibility.
- Check for criminal history
Checking the tenant’s criminal history can help you identify any potential risks. If a tenant has a history of criminal activity or a criminal record, it’s best to avoid renting to them.
- Schedule an interview
Schedule an interview with the tenant to assess their suitability for your HMO. Use this opportunity to ask questions and address any concerns you may have about the tenant. This will also help you evaluate their communication skills and whether they’re a good fit for your property.
- Look for red flags
Keep an eye out for red flags such as inconsistencies in the tenant’s application or references, evictions or bankruptcies, or a history of property damage. These red flags may indicate that the tenant is not a suitable fit for your HMO.
In conclusion, screening tenants carefully is crucial when renting out an HMO. Following these steps will help you identify responsible and reliable tenants, minimize risk, and ensure the success of your investment.
