So, what’s the
first step to finding them?
It might feel like
a boring admin exercise, but a thorough reference check is more than just
finding out whether someone can meet the monthly rent.
Unfortunately,
lots of landlords cut corners when it comes to this stage.
In this two-minute read, we look at some common
mistakes landlords make when it comes to referencing.
1)
Doing
it themselves
If you’re a landlord trying to save every penny, be
warned: scrimping on a tenant reference check could lose you future rental
income. A reference not only looks at whether a tenant can afford the rent, but
also informs you of their past credit history, employment history and previous
dealings with former landlords.
If you go it alone, you may miss vital
information and find yourself in trouble later.
2)
Ignoring
Right to Rent rules
In February 2016, the Right to Rent scheme was passed.
This requires landlords to ensure that their tenants have the legal right to
live in the UK. If you’ve skipped the referencing stage, or not checked proof
of identity records properly, you could face hefty fines if your tenant is
found to be illegally living in the UK.
3)
No
references from previous landlords and/or employers
It’s not all about the money. You want to know what
type of person your tenant is and how they will treat your property. The
referencing process allows you to make checks with previous landlords and/or
employers, so you can get a feel for who your tenant is. If a previous landlord
reports that they were late with rent or damaged the property, you can avoid
yourself a lot of hassle.
4)
Not
using a letting agent
Letting agents deal with landlords and tenants every
day. They know the referencing process inside out, so why wouldn’t you use
them? Yes, you may save some money on fees, but it’ll be worse if you choose a
tenant without making the proper checks and they fail to pay the rent
completely.
With the Renters
Reform Bill looming, landlords should take every step to protect their
properties and incomes, and a reference check is essential.
If you’ve got a rental and need help finding
trustworthy tenants, contact Ridgewater
Sales and Lettings today. We know what makes a good reference and
can help you find the right people for your property.