Landlords are reminded of the importance of tenant checks.
Landlords are urged to carry out a full background check on any potential tenants before handing over the keys to their property in order to avoid rent arrears.
Too many landlords are failing to make tenant checks which The National Landlords Association has declared essential for private landlords to significantly reduce risks.
A thorough tenant check will include the following:
- County court judgments
- Bankruptcy and insolvency proceedings
- Addresses and name aliases
- References from employers and previous landlords.
It is important for landlords to carry out tenant checks as it will provide a clear indication of whether a future tenant will be able to meet their rental payments.
David Salusbury from The National Landlords Association said, “If a potential tenant has a track record of not paying their rent or states they are employed when in fact they got sacked, the landlord should know”.
According to a report by FinderMonkey.co.uk more landlords and letting agents are being forced to issue court proceedings to recover unpaid rent even though the recession is coming to an end.
Landlords are urged to take out a rent guarantee and legal protection insurance policy to protect themselves against rental arrears and breach of the tenancy agreement by the tenants.