Tenancy Management by Property Management Agency 

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Most landlords will opt for a mixture of both, depending on their personal preference and the amount of time and money they are able and wiling to commit. Whether or not you enlist the help of a lettings or property management agency for your tenancy management, it is vital that you take proper references for your prospective tenants.

You will need to ensure that you are satisfied - as much as possible - that the tenant will be able to afford the rent and look after your property. The best way to check their credit rating is to purchase a credit report on the individual(s) from a national credit bureau. This will provide you with information on the tenant's financial situation, including court judgements and the status of existing loan repayments.

It is important that you read the whole report and do not base a decision purely on the tenant's credit score or rating. It is also worth trying to take into account whether a poor credit rating was the result of illness, divorce or careless spending on credit cards - although it may be difficult to get to the truth.

In the end, however, what matters is that you are managing your property investment as a business. Signing up a prospective tenant who has problems paying bills may put your property investment at risk. If you note a bankruptcy on the credit report, make sure that it has been discharged. The discharge should be noted on the credit report.

To help end the problem of a tenant's deposit being unfairly withheld by landlords and agents, Tenancy Deposit Protection Schemes have been introduced. All deposits taken for an assured shorthold tenancy must be protected by a government authorised scheme.

The tenant will usually be responsible for paying utility bills (gas, oil, electricity, water, council tax), unless you have agreed otherwise in the tenancy agreement. It is normally also the responsibility of the tenant to advise the telephone company when vacating a property or taking up a tenancy.

If the property is a leasehold property, the landlord remains responsible for paying ground rent and maintenance charges.

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