It can be very tempting to be a relaxed landlord, in the sense of just accepting tenants at their word and allowing to let a property from you. If you use a letting agent, the agent will do various checks on a potential tenants before allowing them a tenancy. But many landlords do it themselves on an amateur basis and the level of checks they do changes from person to person.
Therefore on behalf of Quick Property Buyer, I have written this article to provide some tips on the checks that I do.
- Work Reference
Ask the applicant to provide a work reference from his or her employer. This should include (i) salary (ii) job title (iii) how long they have been there (iv) is their position permanent or temporary and (v) whether they know if the tenant will be leaving the role shortly.
- Landlord Reference
The potential tenant should provide a landlord reference. This should include (i) the property address (ii) the amount of rent (iii) how long they have been living there (iv) whether they caused any damage and (v) whether their rent had always been paid on time.
- Land Registry Search
If the landlord reference has not been provided by an established letting agent, but by the ‘owner’ of the property, I then do a land registry search. On the land registry you can find out who owns properties in the UK for a fee of around £3.
It is surprising how many times this has flushed out the fact that I have been sent a fake reference or one from a friend of the potential tenant. I let them know the fact that I know the referee is not the owner of the property and ask them to let me know their relationship to the house. This may uncover other details. Therefore this small search may help to avert having a nightmare tenant.
- Parental Home
I ask for their next of kin details, including their address. If the tenant were to disappear in the future owing you money, it is useful to have at least one address for them where you can send legal letters. Some landlords just take the address of where the tenant is living currently, but this rented address will be no good in the future if you need to chase them.
- Copy of Passport
I always ask for a copy of the passport. Sometimes this flushes out their legal name is different to the preferred name they have given you.
- Credit Search
I do not usually do this one, but you can also do a credit check on the tenants. You will need to get their consent before doing this one though.
- Search of the Register of Judgments Orders and Fines
Again I do not do this one, but maybe I should if my instincts are not good on a tenant.
- Bankruptcy Search
Likewise I have not done this one, but worth considering for a high value property.
- Guarantor
If I have any doubts about a tenant’s ability to pay, I ask them to pay 6 months in advance or to provide a UK based Guarantor. If the latter, I go through many of the checks above in respect of the Guarantor as if they were the tenant.
My biggest tip would be to follow your instincts. So often when I have had a bad instinct about someone, they have turned out to be a problem tenant. Your instinct is one of the best advance guides you can have.
Likewise always be concerned if they can move very quickly. If they need to move in tomorrow, alarm bells should start quietly ringing in your head. Many decent tenants do not leave it so late, or it could be that no other landlord has accepted them. In such a case do your checks.
If you would ever like to sell a tenanted or any other property quickly for cash, feel free to contact Quick Property Buyer. It can give you an instant no obligation cash offer and is the fast growing cash buyer company in the UK.
