Rent arrears are affecting an increasing number of landlords and tenant
evictions are on the up. Unfortunately, a lot of first time landlords
don’t bother to check tenants’ references because they are trying to save
money, which is a big mistake in the current economic climate.
Why Tenant Checks are So Important
If you let a property through an agent, the agency will check references
on your behalf, but if you are managing your own properties, it is down
to you to check a tenant’s references. Running references does incur a
cost, but failing to do so could cost you a lot more in the long run
because tenants are not always what they seem.
• Con artists – Some tenants lie through their teeth in order to
get a foot in the door. They know their lies will unravel eventually, but
once they are in situ the onus is on you to get them out of the property,
and in the meantime they won’t bother paying the rent and live there for
free.
• Tenant fraud – Criminal activities can be prevented by running a
simple identity check and you can avoid the horror of discovering your
lovely four-bed executive detached property has been converted into a
cannabis farm.
• Affordability – Is your tenant really a highflying lawyer, or is
he a low-paid waiter instead? If he isn’t, checking his references will
help you avoid taking on a tenant who can’t afford the rent.
No matter how likeable and genuine a tenant appears to be, don’t skip the
reference checks—if you do, your oversight could come back and bite you
big time.
