Predicting the most likely type of tenant for your property is key to a successful let. Here we look at the pros and cons of various types of tenancies. Please note that the following is a huge generalisation but may give some pointers:  

Student Lets: 

Pros: Vast supply of tenants (but only in university towns). No requirement for expensive furnishings. Tenants are jointly and severally liable for the rent, with each providing a guarantor (usually a parent), so arrears are almost non-existent. Rental returns can be exceptional. 

Cons: Parties are not uncommon and students are not known to be particularly house-proud, with little interest in maintaining the garden! Annual maintenance costs can be high. New tenants sometimes need to be found each year. 

Young Professionals/Sharers/Couples: 

Pros: Generally good supply of tenants. Nothing more than basic, clean, fresh furnishings required. Tenants are jointly and severally liable for the rent. Possible guarantor. Rentals can often be longer term than student lets.

Cons: Parties are likely. Job security may not be very high in this demographic.    

Corporate let:

Pros: A credit-worthy business is the tenant and they will often pay more for the right property than an individual would. They sometimes prefer longer leases. Tenants are accountable to their employer so tend to be respectful of the property. Easier to evict if need be (but rare). May pay full rent in advance. 

Cons: They expect a higher standard of accommodation and extensive fixtures and furnishings, cutlery etc. May be demanding re immediate repairs or ask for break clauses. 

Family Let:

Pros: Sometimes flexible over furnished/unfurnished. Easier to let larger properties. No need for subdivision or shared spaces. 

Cons: Own furniture in an unfurnished property can damage decoration during a house move. Family living can exert heavy wear and tear. Single tenant liability. Difficult to evict if need be.  

Older tenants:

Pros: Usually established and financially stable. Often looking for longer term accommodation that they treat as home and they are likely to care for a garden. 

Cons: Few. Death or infirmity of one tenant may prompt arrears but this is very rare. May be difficult to evict, emotionally

HMO (Houses in Multiple Occupation):

Pros: Excellent returns as a property is divided into several households. Risk is spread.

Cons: Highly regulated with a licence being required from the Local Authority. Specialist advice is essential. Additional Electrical Installation Condition Report (EICR) required. 

Thinking of letting? We’re experts in this field. Please contact us today to help you position your investment to attract the most beneficial type of tenant. 

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