Always conduct Tenant Referencing before renting out your property.

Tenant referencing is the most important step in renting out your property professionally.   It can save you time and money in the long run and all in all make for a better experience for the renter and the landlord or Letting agent.  Choosing the right tenant for your property can seem like a hard decision and there is of course an element of risk in allowing someone to move into your property, which you have invested in.

Previous Landlord and Employer references will provide useful insights into the potential tenants renting history and job security.  Recently, confirming job security has become a more important issue.  It is also important to clarify key facts with an employer reference.  Check that what the tenant has told you is in fact correct – do they really work full-time on X salary?  How long have they worked in this particular job, do they move jobs often? All this can give you a better idea of who your tenant is.   Previous landlord references can give a very precise insight to the type of tenant you may be renting to.  Ask the landlord if the tenant paid their rent on time? How much that rent was and if the tenant looked after their property.  Its always worthwhile asking if the landlord would actually recommended this tenant.  Previous landlord references can open your eyes to what your new tenant will be like.  Glowing tenant references mean you can rent your property with confidence.

Its not just previous landlord and employers that will give you detailed information on your tenant.  Have you run a credit check on your potential tenant?  A tenant search will check to see if the tenant is on the electoral register, if they have any addresses undisclosed to you and if they have any outstanding debts or bankruptcies.  The tenant credit check will come up with a score that will clearly show you their credit rating.  Renting to a financially responsible tenant is much preferred to a tenant with out-standing debts and undisclosed addresses.

These checks don’t have to take too much time – a lot of it can be done over the Internet.  Incorporating tenant checks into your renting procedure with full tenant referencing can save you hassle and problems in the future.  Make sure you know your tenant before you hand over the keys.

Make Tenant Checks a Priority.

By conducting thorough tenant checking as a landlord or letting agent you are protecting your property from undesirable tenants and future disputes. A previous landlord reference can provide insights into past experiences with a tenant, and the employer reference can prove that a tenant is in steady employment. An employer reference should validate the employment status of the tenant, confirm the tenant’s employment contract and validate their gross annual salary to be correct. The previous landlord reference will verify the previous tenancy status, confirm their character and rental payment history and also assess the tenant’s suitability to enter into a new tenancy agreement.

FAQ about tenant referencing

What if a tenant has no Previous landlord?

If a tenant has no previous landlord to reference, as it is their first rental property then it is suggested that getting a reference from two professionals should suffice, such as a doctor or teacher.

What if a tenant is about to start a new job?

In this instant it is best to get the reference from the previous employer so they can inform you of the time that the tenant spent working there.

What if a tenant is starting work for the first time?

In this case the tenant will most likely be a new graduate or someone who has just left full-time education. It is suggested here that an education reference is best from perhaps a teacher or lecturer to get an insight into the potential tenants character.

Having financially stable and recommended tenants can ease the stress of renting and avoid disputes and eviction in the future. Make an informed decision on who you rent to and spend the time to find out about the tenant from the people who know.

Tenants leave the strangest things behind!

Unless your renting to friends, family or those recommended to you – you can’t really know your tenant until sometimes it’s a bit too late.  2010 is coming and we’re all hoping for a great year.  So lets take a quick look at some of the stranger things tenants have left behind after they’ve left!

1.    Two foot alligator in the bath
2.    Half a wellington boot
3.    ‘To Let’ signs from letting agents all over town (student let)
4.    £200 in loose change
5.    A False Leg
6.    A home made Coffin
7.    £4000 concealed inside the boiler
8.    A set of False Teeth
9.    A full tank of fish
10.  Credit Card in landlords name (not purchased by landlord)

Its hard to tell what weird and wonderful things a tenant will leave behind, many will find worse than the above!!!!

We recommended you make tenant referencing part of your tenant application process.  For online tenant credit checks and information then go to LettingRef.co.uk

What do Tenant Credit Checks actually tell me?

CCJ:stands for County Court Judgement and they appear on a credit report if a tenant has owed money to a creditor in the past. These records are kept on a tenants credit file for six years from the date of the judgement.  If a tenant has paid after one month of a CCJ being issued then the report will read as satisfied, if the tenant still has a CCJ in progress then the report will read as unsatisfied.  If a tenant has an unsatisfied judgement on their record then they owe a creditor money and you may questions whether this tenant is reliable.
Electoral register: Most credit reports will look at whether a tenant is on the electoral register and this can tell us quite a lot.  Credit reference agencies will use the information on the electoral register to verify a tenant’s identity and prevent fraud.  If a tenant is not registered then they appear not to exist with no credit record, this can have a very negative influence.
Bankruptcies: Any Bankruptcies and insolvencies will be present on a tenant credit report.  If a tenant has been declared bankrupt in the past this will stay on their report for a minimum of six years and sometimes even longer if the bankruptcy exceeds six years.  This affects a tenant applying for credit, as they legally have to tell any lender that they are bankrupt.

In terms of completing tenant screening and renting a tenant your property all this information should come together to form a financial history.  If a tenant is not on the electoral register, has numerous CCJs unsatisfied and was declared bankrupt in the past, it worth your while thinking about whether this tenant is right for your property.  On the other hand if you have a tenant with nothing outstanding and with no undisclosed address you can feel confident in making an informed decision.

3 Reasons why tenant screening makes sense for landlords and letting agents in the UK

1)Unpaid Rent
Renting to an unreliable tenant can cause a lot of stress and is a situation most would like to avoid.  There are steps you can take to find tenants who a more likely to pay on time and be good tenants.  Tenant screening your tenant by obtaining an employer reference is the best way to gage if a tenant is financially reliable.  The credit check will provide information on the tenant’s financial history.  It will look at any undisclosed addresses, whether they have any CCJs that are unsatisfied and whether they have been declared bankrupt for insolvent within the past 6 years.  This information is key in finding the best tenant for your property.
By taking simple tenant screening and employer references you can verify that what the tenant has told you is correct.  It is important to know that the tenant is employed and that the salary they have told you is correct and confirmed by that employer.  This reference will give you the confidence that the tenant can afford to rent your property with a stable job and confirmed salary to back them up.
2) Legal proceedings and Evictions.
Having a tenant who has defaulted on their rent for a few months is a costly affair. The income for the property, which covers the mortgage, has disappeared.  Taking legal proceeding to get the rent owed or to evict a tenant is by no means cheap.  You cannot evict a tenant without taking the correct court action.  It can cost over £500 to take a tenant to court with often a 4 – 6 week wait to secure a court hearing.  Throughout this period your still not receiving rent and you will inevitably have a period between tenants with a vacant property.  All this could be avoided with a quick tenant search!
3) Tenants with negative rental histories
If a tenant is renting a property most likely they will have a history of rentals that they have previously occupied.  In order to protect your property from destructive or irresponsible tenant you will have to look at their rental history.  Running a tenant check will bring back results on any addresses the tenant has occupied within the past three years.  If they have undisclosed addressed appearing on the credit check they you may wonder why they did not tell you about them in the first place.  Obtaining a past landlord reference is vital for peace of mind when renting.  Past landlord references can indicate tenant behavior, if they paid their rent on time and if they looked after the property to the standard expected.

Welcome to the Tenant Referencing Blog

Welcome to the Tenant Referencing Blog.  Bring up-to-date advice for Letting Agents and Landlord in the UK!!!