Giving someone the keys to your rental property is a big deal, and you want to be as sure as you can be that whoever you choose turns out to be reliable, trustworthy, and trouble-free.
For complete peace of mind, a thorough background check will give you the confidence that your tenant:
Whenever we speak to a landlord where things have gone wrong with their tenant, the story often begins with a lack of pre-tenancy checks that could have flagged potential problems.
So for this week’s blog, join us behind the scenes of our rigorous referencing to see what we do and why only the best tenants pass the test.
Before not even consider renting your property to anyone, you need to know that your tenant is financially stable, and the checks we carry out as standard include:
Before we can credit-check anyone, we need to get their written consent and tell them that the search will leave a trace on their credit report (although it won’t affect their credit score).
Employment checks are essential to know that your tenant is working, has the role they say they have, and earns enough to pay the rent. For us, that means:
Historically we looked for tenants earning at least 2.5 x their rent, but with rents rising faster than salaries, we now focus more on actual disposable income and affordability.
One of the most revealing ways to gauge a tenant’s reliability is to ask their previous landlord for a reference, but it’s important to get the full story.
Of course, not every tenant has a previous landlord (perhaps someone is moving from abroad or still living with their parents), in which case we might request a guarantor.
Identity checks protect you and your property by deterring fraudsters and making it easier to trace your tenant in case something goes wrong.
If you can’t verify someone’s identity, don’t let them move into your property. There’s no shortage of tenants at the moment, so you really don’t need to take any unnecessary risks.
When you receive the results of a tenant’s referencing checks, you’ll get one of three outcomes: Pass, Pass With Conditions, or Fail. Here’s what each means and what to do next.
Avoid renting to anyone who either fails a reference check or can’t provide a suitable guarantor when asked: you could break the terms of your mortgage and invalidate your insurance.
How does your referencing process hold up?
Making the right checks is so important in your referencing process to have complete peace of mind over who moves into your rental property.
If you’d like any advice around finding the best tenants, getting the best rent, or working with a letting agent in the Wilton & Salisbury area to handle it all for you, call us on 01722 580059or email us at email@example.com for a chat with our team.
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