However, the Tenant Fees Act means landlords can no longer charge tenants for this service. While many landlords are concerned about the cost of tenant referencing, they cannot afford to forget about this step. Therefore, landlords in Slough need to know how to carry out cheaper reference checks.
What is tenant referencing?
Tenant referencing is the checks a landlord (or someone acting on behalf of the landlord) carries out to verify a tenant is suitable. The most uncomplicated tenant reference involves a credit check, but depending on the inspection being carried out, a lot of information can be reviewed.
There is nothing to stop landlords carrying out checks themselves, which saves money. However, taking the DIY approach can be time-consuming, it can be costly, and many individuals don’t like snooping into other people’s background.
Do I need to carry out tenant reference checks?
Given the drawbacks and complications of tenant reference checks, many landlords will ask “do I need to carry out tenant reference checks?” The answer is yes.
Your rental property is a tremendously valuable asset which creates regular income for you. If you don’t vet tenants, you run the risk of allowing a bad tenant to stay in your home. This may see you lose money in the short-term, and if the property is damaged, long-term damage may be extremely costly.
It is not an exaggeration to say that unpaid rental fees and property damages amount to billions each year, so if you’re a landlord, take the time to review which tenant you welcome into your home.
How can I save money without compromising my rental accommodation?
Given that you need to undertake tenant reference checks, it is essential to look for affordable and practical solutions. Ways to save money without compromising on the outcome include:
- Find a tenant referencing firm who provides you with a value for money service
- Know which checks you need to be carried out and choose a provider who offers these services for a fair price
Not all companies who provide a tenant referencing service are the same, nor do they offer the same standard of service. There are many different things offered by reference check providers, and you may feel you don’t need them all. Therefore, you must consider what is crucial. Some providers offer a swift turnaround, sometimes in 2 hours. Of course, this usually incurs a more significant cost, so if you have a few days to spare, don’t opt for the express option.
Factors you do want to be reviewed include:
- Credit check
- Bankruptcy data
- Residency & address confirmation
- Electoral roll checks
- Alias name search
- Previous addresses linked
- ID verification
You should also obtain references from previous landlords. This can be left to a professional, but you may feel confident in speaking to other landlords yourself.
If you’re a Slough landlord, and you need guidance regarding tenant reference checks, and finding value for money options, contact Addison Giles, and we’ll be happy to help.