It is understandable that finding new Tenants is one of a Landlords’ most important concerns. Sometimes though, with the focus so high on getting new Tenants moved in, Landlords forget to focus on other significant factors.
One such factor that can be commonly overlooked is referencing the new Tenants. Some Landlords get so excited when they get new tenants that they forget to investigate their backgrounds.
Referencing new Tenants is very important because they are going to be occupying a property for a period of time. This means, they have to be people that can be trusted to take care of the place. By proper referencing Landlords can effectively eliminate dealing with a rogue, deceitful or unreliable Tenants. Such Tenants can be problematic, and they can also be expensive to deal with. It would be better to let the property stay vacant for a while and wait for Tenants that will make you feel at ease, than accept Tenants that you know nothing about and take an unnecessary risk.
Of course, risks are always going to be there even if you know the background of the new Tenants, but it is better to be one step ahead of the game than be surprised later on. Some people may look nice and easy to talk to at the start, but they may turn out manic in the long run. You actually really would not know if your tenant is reliable until they have lived in the property for a few months, but being able to discover a few important details will help you make that decision on whether to accept them or reject them as Tenants.
Tenant Referencing Methods
Here is a checklist of the methods that you should undertake if you want to make sure that your new tenants can be relied upon.
- Trust your gut instinct (this may not be the practical choice, but it can be a reliable source – your gut instinct should be able to tell you if the person you are talking to is genuine or not).
- Demand for Identification (asking for ID is significant. Tenants should actually expect Landlords to demand proper identification documents. It is important that you know your Tenants are exactly who they say they are. In some areas it is actually a requirement for Tenants to provide identification and citizenship documentations, in order to control illegal immigration)
- Credit Checks (Some Landlords do not use credit check services when referencing Tenants, but this is one good way to know if the potential Tenant has a good and reliable financial history)
- Tenancy Application Forms (These documents are important. Tenants are actually like potential employees, and Landlords can be likened to employers. Your tenants should be able to fill in the form with the right information like:
⇒ Tenancy details – rental period, proposed start tenancy date and number of people who will live in the property
⇒ Personal details – Tenant’s full name, contact details and length of residency at their current address
⇒ Current Landlord information
⇒ Guarantor details
⇒ Employment information – current employment and salary details
⇒ Details on every potential occupier
The checklist provided can also be included with other means of referencing new Tenants. The important thing to keep in mind is that you need to make sure that your new Tenant has provided you with all the information required before they can move into the property.