You might decide to boycott the letting agencies, save yourself hundreds of pounds by managing the letting process yourself, but you need to think long term.
One step in the process you CANNOT afford to overlook is the VERIFICATION of your potential tenant. This is the point you need to decide if you really want to gamble with your future earnings.
Chances are, the tenant has nothing to hide and he is an excellent candidate who will meet all his rental obligations. Then again you never know...
Did you know that a basic credit check alone, often offered by some letting agents provides inadequate information about potential tenants' ability to meet their rental commitments?
A tenant check should be seen as a good thing for both tenant and landlord; it works both ways; it gives the landlord an insight into their financial capability to meet their rental obligations and surprisingly, it also gives tenants an understanding of their financial limitations. With this in mind, any conscionable tenant will avoid taking on a rental agreement which is beyond their financial realm. Potential tenants need to see the value in a full reference check being carried out on them; contrary to some tenant's belief; it is not a way of prying undeservedly into their financial situation.
A comprehensive report should contain:
6 year credit history
CCJs & bankruptcy.
Defaults, arrears & repossessions.
Linked address search
Employer's reference (where applicable)
Previous Landlord's reference (where applicable)
Bank account validation
Did you know it can take up to five months of unpaid rent to regain possession of your property from a difficult, defaulting tenant?
Do not be under any illusion; many tenants know their rights, and most importantly they know that the eviction process is hardly ever a short one.
Eviction is the last resort to a declining tenant/landlord relationship often caused by arrears or failure to pay rent. There is no guarantee that a tenant will not default; however carrying out your due diligence provides transparency. You are able to get a clearer picture of who this tenant really is.
If you decide to take your chances and skip the tenant verification process, worst case scenario is that you might end up going down the eviction lane. Either way you are out of pocket and in some cases become saddled with a huge debt, which might sadly lead to your property being repossessed.
Do not gamble your property away; verify your tenants today! Use a professional verification service.
Carrying out a tenant referencing is by no means a guarantee, but it provides you with vital information on how to mitigate future financial loss, related to tenant management.