A Guide to Finding and Screening Reliable Tenants for Your HMO Property

As a HMO landlord in Liverpool, you’ll already be aware that one of the most challenging elements of HMO property management is HMO tenant selection. Finding and screening reliable tenants for your HMO can be a frustration, especially in today’s highly regulated lettings environment.

The HMO tenant screening process must be rigorous and in-depth, not only to meet regulatory requirements in terms of right to rent, but also to protect yourself. Making sure that you’re finding reliable tenants for HMO properties in Liverpool is key to minimise the risk of damage to your property or financial loss due to unpaid rent.

How To Screen HMO Tenants

Screening tenants for your HMO allows you to get the information you need to decide whether a prospective tenant is likely to be reliable. A structured and well-thought-out approach to the process ensures that you’ll be relying on facts rather than making guesses based on a tenant’s appearance.

Of course, you want to be confident that you’ve found reliable tenants for your HMO, so your first step is to decide what you’re looking for. In a tenant. Regular income and stable employment are important, and you’re looking for evidence that they are respectful, trustworthy and able to communicate effectively with you.

While you may have an idea of what your ideal tenants look like, you should still make sure that the screening process is consistent and fair as well as in line with the law.

Why Screen Prospective Tenants?

There are many reasons why you should adopt best practices for HMO tenant screening. Firstly, you’ll be reducing your costs in the long run, since thorough screening increases your chances of finding high-quality tenants who’ll pay their rent in full and on time. You’ll also be reducing your HMO property management burden, as your tenants are likely to be relied upon to care for your HMO property in Liverpool and keep it in good condition. As a result, your investment value will be protected. With a thorough screening process, your rental business will be far more successful and streamlined.

Best Practices For HMO Tenant Screening

In this guide to best practices for HMO tenant screening, we’ll look more closely at the different steps you should take when selecting suitable tenants for your HMO property in Liverpool.

Application Form

The best starting point is to prepare an application form as this allows you to pre-screen interested individuals to check whether they’ll meet your requirements before you go any further. Of course, customising the form to suit your needs is key. Before creating your form, think carefully about your criteria.

Some of the elements to add include:

• Contact information
• Contact information for former or current landlords
• Details of anyone else who’ll live with them at your property
• Details of their job and salary

Some other questions to consider adding include elements such as:

• Have you any criminal convictions
• Are you a smoker?
• Do you have a pet?
• Have you been evicted in the past?

Interview

Meeting prospective tenants in person is the next step. When it comes to interview tips for HMO tenants, it’s often best to keep things casual – perhaps a chat while viewing the property. If you can’t be present at the viewing, however, it’s always wise to have a phone conversation or a Zoom meeting with them to run through some key questions and find out more about them faceto-face.

Reference Checks For HMO Tenants

You should check the employment details provided by your prospective tenants and ask to view their employment contract or a letter from their employer on the company’s letterhead. Don’t forget to check their references from their former landlords too, asking questions regarding any missed payments or antisocial behaviour.

Credit Checks For HMO tenants

You want to be certain your tenants will pay their rent and that they are financially stable, so carrying out a credit check is always wise. If their credit score is good, that’s usually a positive sign, but if their credit history isn’t flawless, another option is to ask for guarantors for HMO tenants to give you greater peace of mind.

Regulatory Checks

The Right to Rent check must be done for every tenant in Liverpool by law. You must see documentation demonstrating that they are legally entitled to rent a property.

Red Flags In HMO Tenant Screening

When screening tenants for your HMO, there are a few red flags to be aware of. Here are just a few:

• Is the prospective tenant resistant to the screening process?
• Are they hard to communicate with or contact?
• Are they late or have they failed to attend a call or meeting?
• Is their information inconsistent?

Making tenant screening a key element of your process can help you avoid future issues.

Reducing The Burden Of Finding And Screening HMO Tenants

Finding and screening HMO tenants can be a significant administrative task, so it isn’t surprising that many landlords prefer to use the services of a reputable and trustworthy property management company in Liverpool. An experienced company like Portus Lets will handle every element of attracting and retaining tenants From preparing advertising materials designed specifically to attract your ideal tenants to ensuring that all regulations and legalities have been followed.

Thanks to our effective and rigorous tenant screening procedures, we will help you maximise your HMO rental revenue in Liverpool while enjoying a simpler and more streamlined administrative process that is entirely hands-off.

Call us on 0151 329 3538 or send an email to hello@portuslets.co.uk today to find out how we can help you with HMO property management in Liverpool.