Knowing who is moving into your property should be very important to all landlords. Your property represents an expensive investment and you should always ensure that your tenants are prepared to look after it and have enough income to cover the rental costs.
In order to save money, some novice landlords and even some less-experienced letting agents will cut corners or even forgo tenant referencing entirely. However, this can be a false economy as the costs in time and money to evict an unsuitable tenant can run into the thousands. In other words, trying to save a few pounds at the start of a new tenancy could backfire into a significant financial outlay.
Tenant Track Record
Swansea-based McCartan Lettings is urging local landlords who are managing their own properties to make sure they carry out a comprehensive tenant reference before proceeding with a let. This will ensure that the tenant is who they say they are, will confirm their ability pay the agreed rent, as well as their track record of paying rent in the past.
Typically a professional referencing agency will carry out a credit history check which will flag up any CCJs or bankruptcies, identity checks. The agency will also look at affordability calculations and residency checks. It is also important to get references from the applicants’ current or previous employer and their current landlord in order to verify their suitability for the tenancy.
By checking all of the above, landlords can minimise the risk and eliminate potential bad tenants. Once all the relevant information has been gathered, a landlord can then make an informed decision as to whether or not the tenant is suitable and can afford to rent the property.
The tenant referencing process undoubtedly reduces the risk of letting to unsuitable tenants but there is still a risk that the tenant could lose their job for example and so not be able to pay the rent. The team at McCartan Lettings therefore advises landlords to protect their income by taking out rent warranty cover which will cover the cost of rent and legal fees should the tenancy go wrong.
For any landlords who are uncertain about how to proceed with tenant referencing, then the McCartan team can help. They offer comprehensive tenant referencing as a stand-alone service for those landlords who wish to manage the property themselves but are unsure where to go to get the most appropriate references for their potential tenants. They can also advise on rent guarantee and legal cover options.
For more details on McCartan Letting’s tenant referencing service, call them today on 01792 430100.