Tenants now carry out reference checks on landlords

There was a time when any tenant was considering moving into a privately rented property that the landlord would be sure to get a credit check carried out on the potential tenant.

This was to ensure that there was nothing amiss and to check on their financial status to make sure that they would be able to keep on top of the rental payments on the property each month, and of course this is a process that still takes place.

However, in the current financial climate there has been a big change in that not only are landlords carrying out checks on potential tenants but tenants are now carrying out checks on potential landlords.

Over the past eighteen months or so there have been some real problems where cash strapped landlords have been unable to keep on top of their mortgage repayments, and this has resulted in the property being repossessed and the tenant having to find somewhere else to live and losing out on any rent already paid.

In order to safeguard themselves against this happening potential tenants are checking on landlords before they agree to take on a property, and one industry official confirmed that there had been a real change in the pattern whereby potential tenants were now asking far more about the background of the landlord to ensure that they would not end up in this situation if they signed up for the tenancy.

The official said: “Tenants have been far more interested in landlords’ backgrounds and are asking more questions about where their deposit is being held.”

He also said that tenants were more comfortable now that deposits were held in a government backed scheme, adding: “As the deposit typically amounts to six weeks’ rent, we are finding fewer tenants are comfortable with this arrangement although in the vast majority of cases the lettings agent keeps hold of the funds.”

Tenants now carry out reference checks on landlords

Tags: top, tenants, government backed scheme, reference, property