There are a number of different types of tenants, and which kind of tenants you attract will depend on the type of property you buy, its location and the rent you charge.
The six main types of tenants are:
Mature professionals – these tenants will be in full-time employment and the tenancy agreement usually lasts for six months or one year. Mature professionals usually demand a property in good, perhaps wealthy, location, with good transport links, parking, and a high standard of décor and furnishings. Landlord’s insurance tends to be cheapest for this category of tenants.
Young professionals – these tenants are likely to be just starting their professional careers and will therefore want a home that offers a better quality than that they had a students but they will not want to pay a fortune for it. Many of these young professional tenants will want a house or flat that is convenient for work and for their social life, so city centre living tends to be appealing to them. Like mature professionals, these tenants will only want to sign a shorthold tenancy because as their career progresses they may want to move around.
Students – this type of tenant is generally looking for basic and cheap accommodation for the duration of the academic year, although some students prefer to stay in the house over the long summer instead of returning home. Landlord’s insurance tends to be more expensive if you’re letting to students because these tenants, usually living away from home for the first time, may not look after the property as well as professionals or families would.
Supported tenants – these tenants have a standard shorthold tenancy with the landlord but due to their financial situation, part of the rent is paid by the DSS. Supported tenants include people on low income, such as pensioners, unemployed people or those unable to work due to incapacity, and asylum seekers or refugees.
Multi-occupancy houses – these tenants could be a mixture of any of the above and in many cases the different people sharing the house do not know each other until they move in. If this is the case, there may be a need for the landlord to install multiple bathrooms, en suite showers, or at the very least a sink in each bedroom. Obviously, each tenant will have different needs but generally a house of multiple-occupancy needs to be close to transport links and have good décor. If the different tenants did not know each other before moving into the house it is likely that they will each leave a different times. Therefore the tenants and the landlord will need to decide who is responsible for finding a new tenant after one leaves.
Couples and families – These tenants are generally looking for a high-quality decorated house, perhaps with a garden and in the suburbs, but close to transport links, schools and shops. Although couples and families could be classed as multi-occupancy their needs tend to differ because if one person moves out the rest will go with them, leaving the landlord responsible for find a new couple, family or individual tenants to move in.