How tenant referencing keeps your property safe
04 August 2015 1995 Views
If you’ve recently inherited a property, or find yourself having to let a house or flat you’re struggling to sell, you’re what’s known as an ‘accidental landlord’. While the nature of this name suggests that your ventures into the rental markets might be down to circumstance rather than preference, this doesn’t mean that you can’t see this as an investment opportunity.
If you decide to let the property, one of the major aspects you need to get right is ensuring you have the right tenants. After all, your property is your prize asset and you’ll want to trust that the individuals you have living there are respectful of it and equally that they’ll keep up with the rental payments.
Ultimately this is where tenant referencing is essential. Here, we take a closer look at what tenant referencing is, examine why it’s important and consider an easy way even a novice or accidental landlord can manage this effectively.
Tenant referencing explained
To summarise, tenant referencing is essentially the vetting of tenants before a landlord agrees to let their property to them. The checks that are carried out during this vetting process can vary in depth but can include:
• Credit checks, which look at the credit history of the prospective tenant(s)
• Employment checks, so references from their current employer which confirms their job title, their wage, start date and other details
• Personal references, to verify their identity, their personal history and citizenship
• Landlord references (if applicable) which provide reliable statements from previous landlords regarding the behaviour and reliability the individual(s) during this tenancy Also informing you of any evictions they might have had
• Address history
How it keeps your property safe
In short, thorough tenant referencing keeps your property safe because it clearly shows if the persons involved are trustworthy and a secure investment – ultimately making the decision to approve the applicants much easier. With some of the above checks a private landlord can be assured that:
• The tenant has the financial security and regular income to be able to afford their monthly rental payments
• Their credit history is equally secure and doesn’t pose a threat to their payments
• The tenant actually is who they claim to be and has a right to live and work in the UK
• They can be trusted to properly look after your property and their tenancy won’t be problematic for you and others
Manage tenant referencing with Rentr
Regardless of how experienced a landlord you are, proper tenant referencing is a must. The Rentr DIY lettings app is also a fantastic option to help.
This app provides you with a number of property management tools, which also includes a feature allowing you to manage your tenant referencing. By working with the app’s tenant referencing provider you can conveniently receive up-to-date information that you wouldn’t otherwise get from a typical letting agent.
Say for instance you wanted to know which aspects of your checks you were waiting on, Rentr can tell you the current status of these. Also it streamlines your decision making process as you can find out if there are any negatives about the person that suggest they’re not an appropriate applicant, much faster than waiting for a full report.
Another great advantage to using Rentr is all of this can be easily done from your smartphone or tablet. So, to safeguard your investment and make sure you find the right tenants, ensure you thoroughly reference them and make the process much more straightforward with this useful property management app.
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