Many Landlords and Letting agents have a clear idea of what their preferred tenant should be like. This renter is professional, reliable, well mannered, prompt with rental repayment, considerate to neighbours and overall causes no matter for the landlord or letting agent at all. But how do you find such a catch without running a tenant check?
All of the above characteristics are extremely desirable, but first and foremost these things, what a letting agent or landlord really needs in honesty and communication. A tenant that will connect when there is a problem and work with you as the property owner to reach solutions makes everyones life easier. On the other hand, having a tenant who not answer correspondence, is not helpful when issues arise and cannot be contacted when the rent arrives can become a nightmare very quickly. The following will detail how to run tenant checks successfully to help you find those wonderful tenants.
There are a few steps a homeowner or letting agent can take to fully check tenants before accepted them in the property
1. Credit Checks
Managing a credit check on a potential tenant is about confirming that they are financially responsible, most credit reports will confirm:
o That they are on the electoral register
o Confirm past addresses
o Any CCJ's, satisfied for unsatisfied
o Any bankruptcies or insolvencies
Key information to look out for in tenant checking is the appearance of CCJ's (County Court Judgements) on the credit score. If perhaps a potential tenant has one or more CCJ's it means the tenant is in debt for a creditor money and has been taken to court to settle that payment. CCJ's will be present on a credit file for 6 years, if they are marked as unfulfilled the tenant still has outstanding debts to be paid and may be worth avoiding.
2. Employers reference
An employer reference check must confirm the tenant's employment status. Most company referees is not going to provide nearly anything but factual information.
You should be confirming:
o The tenants total annual Income
o How long they may have worked for the company explained
o If they are part-time, full-time or contracted
o Confirmation that the referee is the tenants current company
3. Landlords Reference point
In the event the tenant you have in mind has already been moving into a rental property then it is certainly much worth your while getting a reference from the previous landlord. Any good reference will ask for following questions:
o How long was the tenant in this property, what were the contract dates?
o How much was the lease for this property?
o Did the tenant pay their rent on time?
o Was the property care for by the tenant?
o Would the landlord recommend this renter?
4. Guarantor's reference
If a situation arises where you are unhappy with the results of the renter checks then an utilizing a guarantor may be a great option. This kind of is usually done for individuals who are students with no guaranteed income, a tenant with a low income or a tenant that has an irregular employment history. A guarantor will be a close relative or someone willing to assume financial liability for the commonly if the tenant prevents paying rent. This means that if the renter defaults on rent it is the guarantor's responsibility to adopt over these local rental payments, protecting your property investment.
Finding a reliable and fast tenant checker service at https://cloudpm.com.au is vital in finding the right tenant for your property. Online systems can check tenant suitability in a matter of minutes. Make sure all the boxed are checked before accepting a tenant to get a better chance of finding your ideal renter!!
