While lending property on rent, you must always check the credentials of the tenant. It is important from the perspective of safeguarding your property. It is a must for a property owner to asses their tenants before letting out property. Renting out to an untrustworthy person may land you in trouble. You may suffer heavy losses if the tenant fails to pay rent on time. Hence, a tenant reference is a must. If you are unsure how to do it, you can approach a property letting agent who can take up references on your behalf.
They follow certain measures to check tenant credentials. They may do it either by writing to your employer or approaching previous landlords. Another way of doing it is by approaching a specialist referencing company that specializes in the task. They will gather the necessary details on your behalf. The agency will find out on your behalf if the tenant is reliable or not.
How to Do It?
You can either do it yourself or seek help from tenant reference agencies that will check the credentials on your behalf. You must be fully aware of the person you are letting out your property. Seeking help from letting agents could serve your purpose well. They can do it on your behalf by charging nominal fees. Tenants must ensure they don’t furnish false information as on verification, they can be found out. You might risk losing your holding deposit.
If you are a tenant about to undergo reference procedure, you must see to it that:
You don’t have County Court Judgments (CCJs) against you.
You are free from Court decrees, Bankruptcy or Administration orders as it will affect your chances.
You don’t posses poor income to rent ratio.
You have no breaks in employment.
You don’t have any breaks in employment over the previous 6 months (other than your holiday entitlement). As this may cause you to fail. Moreover short term employment contracts are generally not acceptable for referencing purposes.
You posses previous Landlord’s reference
Following these steps will ensure you get through the reference check. This kind of tenant reference will ensure that the landlord is provided with all tenant credit report information. It will also reveal the past record of the tenant and help you decide if you should go ahead with letting out your property and avoid loss of rental income.