The National Landlords Association (NLA) has said landlords are risking getting into arrears by not carrying out tenant reference checks.
Over a period of six months, up to £6,000 could be accrued if a tenant does not pay rent, leaving the property’s owner to pay. This may lead to debt management difficulties if mortgage repayments cannot be met.
The NLA said checking tenants’ past renting history offers “peace of mind” at a time when high house prices are pushing increasing numbers of people into rented accommodation.
Inquiries can be made into the prospective tenants’ employment and financial status, including details on bankruptcy and County Court Judgments. Checks also confirm the applicants are who they say they are.
David Salusbury, chairman of the NLA, said running checks would enable landlords “to make an informed decision about their ability to keep up with rental payments”.
Also in property news, Halifax has said homes in English market towns are generally more expensive than in neighbouring towns.
By Dan Mather