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I've posted a few times in the forum this year and I follow it daily.
I invested in my first investment property in March, refurbished and now in the process of negotiating with prospective tenants.
I am just wondering, Im turning down many tenants with large dogs and who are unable to pass an affordability test and referencing because I believe in searching for a tenant who is more likely to be a good long term fit.
I am negotiating with a professional working family with young child at the moment who I feel is ideal and so I suggested if they had any concerns or questions to let me know so we could discuss it to see what I can do to help.
The tenant is asking me about installing a shower curtain and also asked about a fence to close of the back garden for their toddler.
My answer was of course I will make the shower good as they need it but I suggested they can install the fence if they want or if they want me to do it I would need to get a quote and look at the costs of doing this.
Im just wondering if other landlords would be prepared to do these type of additional things in order to pursuade a seemingly 'ideal tenant' to sign up although Im also aware of by doing so that I might be setting myself up for regular 'maintenance requests'.
Im just curious as to how far you would go to pursuade an ideal tenant if you needed to let asap or if you just say the property is 'as seen'.
Also, this has made me a little concerned about building portfolio of 5 or more properties to rely on the cash flow as income. Do other landlords actually use the rental profits or is it usually needed to re-invest into the upkeep of the property?
For the purpose of this example, lets assume a property purchased at 115,000 with 725/mo rent and 75% mortgage. Im assuming the 'profit' is estimated at approximately 350/month net after a 20% tax deduction.
Any thoughts appreciated.
If you don't get the fence done, how much longer will it take to find a suitable tenant? Is there no fence at the back of the garden at all right now? Anyway for me, if one tenant mentions an issue like that, you can be sure others will too. So it might make sense to get the fence done, so that you don't put off potential tenants who do viewings in the future too. If it delays renting the property by a couple of weeks finding someone else suitable, then you have already incurred half a months rent lost.
Thanks for your reply..
The fence would be to partician the rear garden from the front so their toddler could play in the back garden without venturing into the front garden, Im guessing a few hundred pounds maybe
I am not sure how long it will take to get a tenant, probably weeks if that although a seemingly 'ideal' tenant to me are people who seem genuine, with a small family maybe and in professional work with no pets. They fit the criteria.
Of course I will negotiate although I'm just wondering if anyone forfeits some profit to land the seemingly ideal tenant.
You can never really class them as the ideal tenant, they have not moved in yet, so you have not experienced what they would be like as tenants.
But if your back garden is not properly closed off, sounds like its something that you might want to just get done.
I've forfeited at least 10% of the 'going rate' in one of my properties in my area, and I'm more than happy to do so, my tenants are the salt of the earth, they're a lovely family unit, with family values, the husband (who is a practical sort) fixes any small day-to-day problems, and only calls me when it's something that he knows I need to be involved with.
It's a no-brainer, put a fence up asap and get the family in, and, if they do turn out to be ideal tenants, keep the rent well below the local market rate, you don't want to lose them
Personally I'd just get it done, sounds like it would benefit the property anyway. It could be the sort of thing that would put some tenants off not having the partition.
The property already has perimeter fencing and foliage. The new fence and gate would be a separator between the front and rear gardens (to run from the garage to the side of house).
All comments here have convinced me so thank you for edging me forward (even though I've already done a £10,000 pounds refurbish. I guess it just needs some finishing touches).
I now agree it makes sense to forfeit another £300 to land a good tenant especially when I'm saving on agency fees by doing it myself.
Of course it now makes perfect sense, i.e. get it rented to a good family ASAP, then onto the next!
Universal Property Services Ltd