Edge Newsletter #21 - Adjustments to screening tenants

What I’m watching

The Notebook - Romance film with Rachel McAdams & Ryan Gosling. On Netflix, till the 31st if it’s your thing.

Resource of the Week

Very pleasantly surprised that many of you appreciated the fountain pen from my recent TikTok vid. So this week, I’m wholeheartedly recommending the Pilot Custom 823. It’s stunning, writes dreamy and will last a lifetime.

I think we should all slow down once in a while and actually write more. So therapeutic and makes you think so more intentionally about each word.

Quote

“I wish it need not have happened in my time," said Frodo.

"So do I," said Gandalf, "and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us.”

J.R.R. Tolkien, The Fellowship of the Ring

Thoughts

I’m in the process of reletting a property in the portfolio, and one of the biggest differences between myself now and when I started on the property journey is being much more careful about screening tenants. In the past, I would just trust my lettings agent and accept anyone who passes the standard referencing, but not anymore. The margins aren’t great as they stand, and if you get a bad tenant like I recently did, it can easily wipe out multiple years’ worth of returns.

In a way, it’s a little sad, as I feel that the ‘process’ has let landlords down by being so convoluted and, in some ways, unfair. For example, this particular house is a 3-bed semi, and a family wanted to rent consisting of a warehouse worker and cleaner on £20k and £7k and two children for a £750 a month house. Technically, it’s a pass when you use the official affordability checks, but I decided to decline after much deliberation. Once you factor in council tax, groceries, kids stuff, car payments, bills etc., it’s just too tight. After my recent experience, I don’t especially fancy a phone call in the winter saying they can’t afford rent due to cost of living rises and xyx. Especially since I’ve had first-hand experience of the abysmal eviction process if the worst were to happen. You really can’t do much in this situation.

If landlords have the assurance and confidence that nightmare tenants can be dealt with, this wouldn’t be an issue. There's little trust in the system. All this does is make it much tougher for tenants already struggling and worsen the rental shortage crisis. For all I know, they could be very good people.

On a lighter note, I can’t believe we’ve got another heatwave coming. This is the longest period I remember without any rain. As someone well in his 30s, some of you have been kind to say that I look young for my age. The ‘secret’ (aside from my genes) is using sunscreen all the time. So don’t forget! Also, most people don’t use enough. I saw on TikTok (not sure how reliable that source is lool) that if you need it for your whole body, such as when you’re on the beach, for example, it’s about half a bottle to get good coverage. So stay safe! Have a good week.

Hit reply if you want to share anything, disagree, or have any feedback. I read and respond to everyone.

Hans