Landlords: Why it's Important to Reference Your Tenants

With the number of private renters in the UK on the rise, many landlords are making a very comfortable income from their rental homes. It is little wonder, therefore, that so many people are interested in investing in property and making a lucrative living from renting out these properties.

The high demand for private rented accommodation means that there is no shortage of tenants for landlords to choose from, which in turn means on-going income from the property with few if any void periods. However, in order to ensure that your experience as a landlord runs as smoothly as possible, it is important to ensure that you are choosing the right tenants.

Get peace of mind when you reference your tenants

Your rental property is a valuable asset and a source of lucrative income if you choose the right tenants. However, if you make the wrong choices your lucrative income could go down the drain; you could end up having to pay out money for a variety of issues and your valuable asset could end up sustaining serious damage.

Referencing your tenants can provide you with valuable information that can help you to make the right decision about the tenants you choose. This includes providing information such as:

      Breach of tenancies: If your potential tenant has had past tenancies with other landlords, referencing will enable you to determine whether they have been a good tenant or whether they have breached their tenancy in the past with former landlords.

      Paying rent: When you reference your potential tenant, you will be able to see whether they have left rent arrears on any of their past homes with other landlords. You can also better assess their ability to meet the monthly rent on the property that they are looking to rent from you.

      Anti-social behaviour: A reference will enable you to see whether your potential tenant has been the perpetrator of antisocial behaviour in the past, which could help to determine whether or not they will be a suitable tenant for your property.

Making sure that you get this type of information from references means that you can make a more informed decision as to which person or people you rent out your property to. Getting references and knowing that you have a good, reliable tenant who has not posed issues for other landlords in the past and always pays the rent, can provide invaluable peace of mind.

Of course, you cannot take anything for granted and even if you do carry out referencing, you need to make sure you cover your back. With landlord's insurance from the Co-operative Insurance you can benefit from protection through the range of features, such as landlord's contents cover, property loss or damage cover and property owner's liability cover.