If you had a choice of the two tenants below which would you choose:

If you had a choice of the two tenants below which would you choose:

1. A middle-aged couple (one working and earning minimum wage, one at home) with two school age daughters, who have rented their current two bedroom home for 4 years, and now want a 3 bedroom house so that their daughters can have a room each. The current landlord confirms that the rent has always been paid on time. The couple are very keen to rent your property as it’s close to their daughters’ school, but they can’t afford a Bond. Their parent who is a home-owner will act as guarantor.

2. A professional couple both in their twenties, recently moved to the area due to promotion and job relocation for one of them. They can pay 2 months bond and have a parent who’ll also act as guarantor.

From a risk point of view, assuming both pass credit checks, they both look like they’d be pretty good tenants, don’t they?

One of the things missing from the tenant selection process carried out by most Letting Agents is an assessment of how long they’re likely to stay.

We all know that tenant turnover usually results in void periods and refurbishment cost.

Our credit vetting process shows how long the applicants have been in their previous home(s) during the last 6 years.

We can then use this, in conjunction with an assessment of their circumstances, to work out who is likely to stay longer.

Based on this, I’d select the family rather than the couple. The professional couple are a slightly lower credit risk and have a bond, but there’s a good chance they’ll be on the move again in a year or two.

This is one reason why our average tenancy length is 4 years, compared to the industry average of 21 months.