Multiple offers? How to choose between prospective tenants

The latest rental report from Rightmove suggests there are 17 tenants enquiring about every available rental property it lists. When demand is high and there are multiple applicants, how do you decide who’s best?   

Money talks but in lettings, there is more to selecting the best tenant than the value of the offer they have made. Landlords should always work closely with their letting agent to narrow down the list of applicants, being careful not to make a judgement exclusively on the promise of a tantalising monthly rent.   

The following aspects should also be taken into account:

Referencing passed

An in-depth referencing process will establish a potential tenant’s income, employment, credit score and credit history (whether they have CCJs, IVAs, debt relief orders and bankruptcies). A good pass will give a strong indication as to whether they can afford to pay the monthly rent they have offered. 

Excellent track record

A well behaved tenant is sometimes of more value than one paying a top market rent. References from past landlords and lettings agents will confirm if they treated a property with respect, were law-abiding occupants, were considerate neighbours and paid the rent on time every month.

Good communicator

A keen tenant genuinely interested in creating a home for themselves will be diligent and proactive. It’s generally a good sign if they turn up to appointments and viewings on time, sign and return all paperwork promptly, don’t hesitate in paying a deposit, and ask questions about utilities and local facilities.

Rent paid upfront

If there are any lingering doubts about the financial status of a tenant – perhaps they have dipped slightly with their credit score or they’ve just started a new job – some of the risk can be reduced if there is an amount of rent paid upfront. Advance rent, however, is no substitute for professional referencing and ongoing due diligence, such as mid-term inspections. 

A willing guarantor

First-time tenants will not have a rental track record and in the case of students or very young renters, may not have built up a credit score either. If this is the situation presented, a rental guarantor can be a beneficial back up, paying the rent if the tenant can’t cover the cost.

Gut feeling

Although it can be hard to explain, gut feeling can play its part in securing the best tenant – especially if you have met the prospective candidate in person.  

A note about discrimination

Everyone involved in lettings needs to be fair, mindful and lawful when it comes to choosing the best tenant.  

Landlords and letting agents managing private tenancies are bound by the Equality Act 2010, which requires them not to discriminate because of ‘protected characteristics’. This means assumption, speculation and bias must not be used in terms of age, sex, disability, sexual orientation, marital or relationship status, gender reassignment, pregnancy or maternity, religion or beliefs, race, skin colour, ethnic group, nationality or national background.  

Landlords should not engage in selective pricing either. This is when the rent is set to such a level that it knowingly excludes people with protected characteristics. Rent setting should be fair and consistent across all tenants.  

In England, the Renters’ Rights Bill was introduced to Parliament on 11th September. It seeks to end blanket bans for those in receipt of benefits or with children. Additionally, landlords will no longer be able unreasonably refuse tenants with domestic pets. The Government would like its Bill to become an Act by the end of Summer 2025, with more clarity to follow.  

Extensive questions about personal characteristics during the referencing process should be avoided but it is permissible to investigate a prospective tenants’ financial health.   

Got a property to rent out? Ask us about our tenant find, referencing and property management services.