When a Landlord is looking to rent out one their properties, more often than not they find themselves struggling to pick the ‘right‘ tenant.
If you find yourself in this situation it’s important to note that the right tenant requires the right property. Each property is different and some tenants are better off in certain types of properties. The local markets supply and demand also plays a part when looking to rent out a property so be sure to do your research beforehand.
Let’s make a list of potential ‘types of‘ tenants that you may come across and some of the benefits & drawbacks of each one.
- The professional couple
- Single parents
- The elderly
- The Unemployed
You will of course come across tenants who overlap when it comes to ‘type’ for example you may get an elderly couple who are both employed or a single parent who is unemployed. Simply combine the two categories to help you make a decision.
1) The Professional Couple
In general, this type of tenant is sought after by the majority of landlords. If both tenants are working it is more than likely that they will have little trouble financially and will be able to pay the rent on time without any issues.
They can come with some potential drawbacks though and these include:
Career demands – Couples are always looking to improve on their careers and if an opportunity arises they may just move to another location. This is not great news for you as a landlord if you are looking for tenants who will stay long term.
Relationship issues – If the couple decides to break up it will more than likely mean the end of your tenancy agreement.
2) Single Parents
In general single parents are not bad tenants. They are usually quite settled and just looking to keep going for their children’s sake. They tend to keep the house clean and tidy and are quite reasonable when it comes to requests and repairs.
3) The Elderly
Although this type of tenant is rare you may get approached by one and generally they are very easy to deal with. They rarely default on paying rent and are polite. They tend to keep quiet and not kick up a fuss over anything.
If they really like your property you may find yourself with a long term tenant as they won’t have any reason to move away.
Here is where location comes into play a bit more. If you do not want to deal with students as possible tenants be sure to not to purchase a property near a university area. Saying this, if you can get your hands on some prime real estate in an area close to a university campus you could make a killing.
Students can be a handful to deal with but it really depends on the student itself. The majority are just looking for study and get a degree but you will come across some students who are just looking to chill and party etc.
Most students are supported financially by their family/parents so rent is not an issue. In general they are also intelligent so if any issues arise they can be sorted out pretty easily.
5) The Unemployed
These types of tenants are hit and miss, you could find one who is totally fine but then others who are just a nightmare to deal with. If you don’t have experience in dealing with tenants on benefits it may not be the best option.