Six Benefits of Thorough Tenant Referencing
Referencing could involve credit checks, employment status, or character references from previous landlords.
Tenant referencing is finding out and confirming information about a prospective tenant. While this process could seem unnecessary and time-consuming, it serves to protect both parties, and the property itself.
Benefits
- Reference and credit checks are a great way of safeguarding your finances, allowing you to assess the financial stability of the tenant and check whether late or missed payments are likely.
- In England, all landlords have a legal obligation to verify a tenant’s identity and to ensure that they have rights of residency. By checking identity, you are ensuring that you are fulfilling your legal duty, as well as checking that there is no fraudulent activity.
- A property is a large investment, and landlords need to be confident that tenants will take good care of it. By checking with previous landlords, you can ensure that your tenant has a good record.
- Evictions are costly, stressful, and involve many legal challenges. By carrying out due diligence beforehand with substantial checks, you are minimising risk at a later date.
- Positive references give a landlord peace of mind, in terms of a tenant’s previous conduct when it comes to making payments on time and serving the correct notice when leaving.
- Finally, proper checks benefit the landlord and tenant relationship in the long term, with all parties having a clear picture of expectations and the terms of their contract.
Letting Agents
Letting agents are trusted, experienced professionals who can manage all aspects of renting out your property. They ensure that your building is vacant for the shortest possible time scale, manage tenant introductions, and carry out all relevant tenant referencing on your behalf.
For an example of letting agents Bridgwater, visit https://www.sykesmoore.co.uk/lettings/letting-agent.
Instructing a letting agent gives landlords peace of mind. Renting out a property can be stressful and daunting, considering all of the obligations involved, but an agent ensures that you are in compliance with all regulations, while making the process as streamlined as possible.