No matter if you are a letting agent, tenant or landlord, you have to go through the tenant referencing checks. It is the most crucial part of the rental process that allows the landlords and agents to decide if a tenant worth renting your property or not. There are many tenants and landlords who find it difficult to understand the tenant referencing checks and their importance. Many like to hire tenant referencing company in the UK for the job.
Let’s take a glance at the important aspects of tenant referencing in the UK that all of us must know.
What is Tenant Referencing?
Tenant Referencing is in itself a big term. It consists of a number of checks and references that are done to verify if the tenant is suitable for the property or not. Most of the landlords and agents perform a background check of the tenants to make sure that they are suitable for a property and this also includes a credit check.
Apart from the credit check, there are many other comprehensive reference reports including written and verbal references. Most people hire a tenant reference company to perform the check for them while many others prefer checking on their own.
How important is Tenant Referencing?
Being a landlord, you know how valuable your rental property is for you. It is a source of your income for you and your family. When you decide to rent your property to tenants, you wish that they are the best tenants you can ever have for your property. If the tenants are good, you will be relaxed that they will take care of your property the way they would have taken care of theirs.
The tenant referencing can help you in choosing the right tenants for you and staying away from the bad ones. With a proper check, you might end up facing damage to your property and mental peace.
Is there a Procedure for Tenant Referencing?
No, there is not a particular procedure for the tenant referencing. It all depends on whether you are doing it on your own or are hiring a professional for your service and how detailed you want your tenant referencing report.
What is the Need of Running Tenant Referencing?
On meeting tenant, the landlords won’t be able to judge if they are worth renting their property or not. Tenant referencing is, in fact, the best thing that you can do to find a reliable and suitable tenant for you. Here are some of the reasons that support the fact why tenant referencing is important:
Having the rental property as a source of income means the landlords expect their tenants to pay the rent in a timely manner. It is important to know that your tenant is capable of paying and won’t delay it every time it is the time to pay. This leaves the landlords in tricky situations also when they are not able to make the further payments.
- Property Damage
When a landlord rents his property, he expects the tenants to take care of it during his tenancy. The tenants who damage and create a mess in the properties put a burden on your pocket on leaving. You have to face huge cleaning bills and repairs. In fact, sometimes, you might end up paying more than your profits.
Improving accountability whenever any issue arises is also an important aspect of the tenant referencing. There are many providers who lend loan to the tenants only when they are able to put in front the tenant referencing check.
How much time does Tenant referencing take?
There is no particular time taken to mention for tenant referencing. It varies on the basis of the type of reference that is being carried out. It can take from a few hours to a few days to complete the process. If we are to talk about a general tenant referencing company in the UK, they will return the report within 2 working days.
The professional tenant referencing companies generally give an estimated time that they will take to provide you with the check report. It is also advised to know the reviews about the tenant referencing companies that you will be hiring for your process.