Types of Tenants

A Landlord needs to be aware of the types of tenant who may rent their property and should decide the type of tenant required as it saves time and effort in showing round unsuitable applicants. There are basically 5 categories.

Sharers
If the landlord is happy to accept sharers it does not matter that the property is shabby as long as the Landlord clearly understands that he cannot update his house at the expense of tenants when a tenancy terminates. The house will be shabbier through wear and tear - the price he pays for the rent he collects. He will also have to face the fact that items will break down through continuous usage or need replacing and that tenants do not look after the property in the same way as he did, or keep it as clean. It is essential that a landlord understands if his property will only appeal to the sharers market as he may prefer to leave it unoccupied.

Students
This group of tenants require cheap basic property for a limited period of time. The Landlord is secure in the knowledge that he is very unlikely to have sitting tenants and if he wishes to spend the minimum on equipping his property, student lets will provide a good return for his money as there are always more students than properties available. It is important that the Landlord understands the different types of funding as he will have to obtain letters of guarantor together with financial References on each guarantor. The Landlord may prefer those who earn a salary.

DSS
Not without problems, but a ready supply of tenants and funds. Look at the local market. Ideal if are looking for long term tenants, the majority of family tenants for example, usually do not stay longer than the initial agreement, typically 6 months.

Family Tenants
If the house is reasonable and in a good area, convenient for schools and transport, it will appeal to families who may be able to offer a company let or may require a private let but under an assured or assured shorthold tenancy. A Landlord must understand that other children may not have the same values as his own and may have been brought up in a different way. The house cannot be sparsely furnished or too basic as families expect a good standard of comfort and will not put up with shoddy poorly maintained property. However many residential Landlords would prefer a family who will accept the foibles and inadequacies of their home rather than a company tenant who may demand a top notch investment property.

Company Tenancies
The "company tenant" demands top quality properties, which have to be decorated and furnished to a high standard, with all machines, in a well equipped kitchen. The Landlord aiming for a "company tenant" should be aware of the standard required, perhaps having a power shower fitted or indeed a shower, new kitchen equipment and fittings, redecoration or alternatively to settle for a less demanding tenant.