More than 15% of the United Kingdom’s population rents privately from landlords, and thus, you’re bound to run into a tenant who isn’t as… let’s just say “reliable” as the others. With this in mind, you should encompass back-up options on how you can be protected as a landlord and make your property investment flourish the best it can. Let’s outline them below.
ID checks all around - no slacking! Prior to inviting a charming stranger to live in your home, find out who they truly are. Maybe just maybe, they’ve taken up a second identity and are a trained assassin! You can never be too sure, thus, ensure your tenant provides their birthday, national insurance number, full name and any nicknames, current last two addresses, their place and line of work. It’s important that they also exhibit their passport or driver’s licence, and two references. Ah, and one more thing… don’t let their outstanding payments be hidden away. Ask for the tenant to be upfront about any funky Ferrari leases they may have, or else, their monthly salaries may not be enough to pay you rent on time.
Stemming on from the first point, run checks for any criminal activity or adverse credit. Explain to them that you’ll be doing this prior, and if, just if, they react concerningly, you may be onto them…that they’ve committed a thing or two. If the tenant promises you they aren’t borrowing any credit, leave it. Leave it faster than Bolt runs. It’s better to protect yourself than plead for a payment they can’t make on the due date. Similarly, if a tenant has gaps where their credit record shows that they’re behind or does not have valid information, they could have given you a fraudulent name. Be on the lookout!
Reference, after reference, after reference. Dial the digits of the references they have provided with you - don’t automatically give your tenant the benefit of the doubt! Ensure that their references aren’t their high school sweethearts, or their supportive mother; they must be previous landlords who can be honest with how they treated the old property and about their antics (especially if you’re renting out a class A property).
Rent guarantee insurance. Specific providers offer landlords the option to purchase insurance that will manage tenants who fail to pay on time. Wectory in fact, offers rent guarantee insurance free of charge as a part of its package when a landlord requests rent in advance. The rent guarantee insurance covers tenancies up to £2,500 per calendar month (PCM) and works as a useful piece of equipment to leave no spaces in rental payments for the landlord, by the tenant.