The Importance Of Carrying Out The Right Checks On Your Tenant

Taking a tenant at face value is obviously not the best judge as to whether they are trustworthy, reliable and prompt payers! The question is how do you really check them out? Even references are not a failsafe method of checking out the tenant. It is important that you are aware of the measures your reference provider is taking to make sure that the information they pass on to you really is of value.

The first part in the letting procedure is obtaining proper references. This is a vital first step and one that your insurance company will insist upon, especially if you are taking out cover for legal expenses and rent guarantee (a sensible option.) Many agents outsource this service to specialist reference providers, these may differ in quality of service, so check them out!

Letting property can at times carry certain risks, you may come across a variety of issues from fraud and identity theft to unreliable tenants. These times of economic uncertainty are breeding grounds for fraud. Nothing should be taken at face value, it is vital to do the relevant checks. To validate income, obtain references from the potential tenants’ employer and their previous landlord.

The next step would be to verify their suitability to actually rent a property. This should be carried out by an impartial , expert third party and must include county court and bankruptcy searches, identification checks and validation of bank sort codes.

If using a reference checking firm, make sure that they carry out the necessary checks in detail. You will need not only the basic credit checks, but also full identity and fraud checks. You will need the following from your provider:

Authentication

This means checking that the tenant is exactly who they claim to be, this is usually done by a third party checking their passport, birth certificate and proof of address.

Previous addresses

This will throw up if there are any CCJs. Data searches should look for detrimental information at undisclosed and linked addresses, if the tenant has failed to disclose a particular address it could mean that they may have something to hide.

Employer’s references

It is incredibly important that your client has the means to financially keep up with the rent, so to have their employer’s details is vital. The employer’s details should also be authenticated as they could be fictitious.

Guarantors

If a guarantor is being involved they too need to be verified, and should be as carefully referenced as the tenant themselves.

Tenant history

Any previous landlord references should include all details of the tenancy even if they were model tenants, did they leave in arrears, leaving all kinds of property damage behind them?

Acquire a three year address history with a reference from the most current landlord.

Landlords want the entire process to move forward as quickly as is humanly possible, they have a mortgage to cover, but it is crucial to note that you can’t substitute quality for speed. All of the necessary checks must be carried out properly; it is pointless trying to rush proceedings only to find that you now have the tenant from hell. It is all about protecting your property and ensuring that the rent is covered each month, this is why a full check on your potential tenant is vital.

No related posts.