A nightmare tenant is every landlords fear. Whether youve decided to rent out your home for a while or youre embarking on a buy to let project, its vital you get the right tenants who will look after your property and pay the rent on time. 

But how do you avoid problem tenants?  Here are some key principles you should keep in mind before renting out your property.

New landlords

Never rush to secure tenants quickly without doing the standard checks and ensuring you have an adequate deposit facility in place.  Do your research, make sure your property is up to scratch remember you need the right certification for gas electrical appliances and dont forget to fit smoke alarms and carbon monoxide detectors.  Attracting the right calibre of tenant is key, so ensure the property looks its best.

Get extensive references

Tenant referencing is critical.  You must carry out appropriate checks to ensure your tenant can meet regular payments and will not use the property inappropriately or cause any damage.  Many agents offer a hassle free service included in their fees.  These checks will often involve extensive employer background and references, credit history, criminal record check and affordability calculations.

Make sure you have insurance 

It is surprising how many landlords dont have the right level of insurance when letting out their property.  Specific landlord insurance is available online and from many high street firms.  Having a tailor made insurance plan to cover every eventuality so its important, particularly if you are living in another country or for major incidents such as a fire or flood where you may need to temporarily re-house your tenants while damage is repaired. 
Landlord insurance can be very cost effective be sure to check all the options thoroughly and compare prices.

Buy to let insurance

If you are renting out property as an investment opportunity and aim to make significant returns, you may need to look in to buy to let insurance.  Again, you can tailor your insurance according to your needs.  Be sure to research all options thoroughly and make sure all aspects of your property are adequately protected.  

Deposits & tenancy agreements

A deposit can be paid before a tenant moves in and should be used to put right any damage, deal with unpaid bills or rent.  All deposit monies now need to be held online with government schemes to protect you as the landlord and also your tenants interests.  While this is a safeguard, this is not a replacement for adequate reference checks. 

Make sure you have a thorough and specific tenancy agreement in place, carry out a full and detailed inventory with your tenant before they move in to avoid any potential dispute on vacation. A belt and braces approach is always recommended.