Print friendly version 22 Jul 2008

Scrimping on tenant checks could cost £6,000

Landlords could lose up to £6,000 by failing to carry out appropriate checks on prospective tenants, according to the National Landlords Association (NLA).

If a tenant fails to pay rent it could take up to six months to resolve, leaving the landlord out of pocket by nearly £6,000 (according to the Paragon Buy-To-Let Index for June the average annual rental income was £11,952, making a six month rental arrear almost £6,000). However, landlords can seek to minimise this cost by carrying out reference checks.

The NLA offers a system called Tenant Check, which will confirm a prospective tenant is who they say they are and whether or not they are employment. The basic package also includes bankruptcy and County Court Judgement searches. A more detailed profile can be accessed in three days and will verify identification and provide buy-to-let landlords with written confirmation of employment and income. NLA members can access the service for £6, while the cost for non-members is up to £28.

Commenting David Salusbury, chairman of the NLA, said: “NLA Tenant Check is a simple and affordable tool that allows landlords to reduce the risk of possible future problems with rent arrears and gives them the opportunity to paint a clearer picture of their prospective tenants.

“By simply entering a few details about a new tenant into the system, the landlord will be given a profile of that person’s credit history which will allow them to make an informed decision about their ability to keep up with rental payments.”

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