The Government’s latest Court statistics which were published on Valentines Day shows that the number of landlords seeking possession and the number of court orders continues to rise, as it has done for the last five years since the recession started to affect tenants.
So the question is; how do you avoid this situation and make sure that you have a tenant who can afford the rental.
Use an ARLA registered agent, as they have to adhere to the strict guidelines imposed on them and ensure that they uphold their duty of care to both landlords and tenants. Part of this is to ensure that the best tenants are placed into the property.
Here at Sarah Kenny, we impose a thorough referencing process to ensure that tenants can meet their liabilities, not just the rent but also expenses such as bills and the cost of living. We use a third party referencing company to ensure that this undertaken properly. The referencing undertakes a check on each tenants three year address history, to ensure that there are no nasties hidden there.
Both the employer and the landlord are contacted as well. The employer will confirm that the tenant is indeed working for the company and that there salary is sufficient. It also flags up any circumstances such as probationary periods, or if the position is due to end prior the end of the tenancy. The landlord reference seeks to clarify the amount of rental that they have paid previously and if these payments were made on time and in full and also how the property was maintained.
There are of course those tenants, who never fit the ‘mould’ precisely, such as those that are self employed, have not rented a property or come from overseas. Therefore, we do realise that each circumstance is different and also the importance of being flexible.
By overseeing the referencing process thoroughly and building a relationship with tenants from day one, the pitfalls of non paying tenants can be avoided, it is a case of taking a pragmatic approach.
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