RJL Group:Tenant Options

What Tenant type would be best for my property and Investment strategy?

As Landlords, we all have different objectives when it comes to investing in property. Some may want to build wealth through capital growth, others cashflow, and within that there are many types of properties that apply to that strategy.

For example, anyone that invests in HMO's has a choice of tenants out of students and professionals, depending on the area. What if there was a 3rd option? An investment type that didn't involve paying for certificates, repairs, or having voids for 5 -7 years with a guaranteed return?

We work with local authorities and Social Housing providers to lease property from Landlords that offer substantial benefits for all parties involved. We have drawn up a list of comparisons to help you decide how Social Housing tenants compare against private tenants and Supported tenants, to decide what works best for you risk vs reward appetite.

The typical tenant type for a private Landlord, most would be professionals, working for a living and being seen as the most "secure" person to be able to pay for the rent on the property. Another example would be students, house sharing back by a part time job or guarantor whilst at university.

Finding mortgage products and insurance for private/ working tenants is very easy to find with lots of competition which drives the cost down.

Just because a tenant has a job or guarantor doesn't mean they will pay, the guarantor will help to recoup costs but job can go quite easily or the tenant may just refuse.

Working tenants are likely to be able to pay more for a property than someone on benefits, and this may be your only option depending on the demographics. It may also give a great return on your property.

When sourcing a working tenant it is highly advisable to carry out a full history of checks for affordability, previous history of renting, right to rent, CCJs, employment record and previous names/ addresses.

Its essential to make sure you have the right person to rent your property to, no tenant is better than a bad tenant......