Thankfully the clear majority of tenants are honest decent people choosing to rent rather than buy a property for a variety of reasons, but how do you spot a problem tenant before they gain your keys?
Many landlords use their gut instinct, but serial problem tenants can put on an Oscar winning performance tricking the most careful of landlords. Financial checks are a highly beneficial tool, but these tenants know how to pass checks without raising suspicion, unless you or your agent performs further due-diligence.
If a tenant states they have been “living with parents” for a long period, this could obviously be genuine. But should trigger detailed checks to ensure this is not being used as means of covering their tracks.
A tenant unable to gain a positive reference from previous landlords, or with a poor financial history including CCJ at a previous address, can try to avoid suspicion by (illegally) falsifying their previous address history. One simple way of doing this is by stating they have been living at a family address for a significant duration.
Like above, where potential tenants state they have been "working abroad” again this could be genuine, but further checks must be completed to validate how long they have been abroad, proof of where they were working / living and for how long, including references.
Should a potential tenant falsify information via a financial referencing service, they run the risk of being reported for Fraud, with a maximum penalty of up to 2year imprisonment. They could also be served a section8 notice with a view to removing them from the property in two weeks. However, it far less challenging if you can stop them from ever getting the keys to your property!
When reviewing a tenant’s recent history, if they have lived at multiple properties over the previous couple of years, this should be treated with caution. There may be genuine reasons why the individual has moved from property to property, but these should be checked thoroughly with substantiating evidence provided.
With the recent rise in zero hours’ contracts when talking to tenants who state they are in fulltime employment, checks should be made with their employers to validate that they have sufficient contracted hours to cover a minimum of 2.5x the monthly rent.
It goes without saying that that your standard process should include gaining positive references from previous landlords and confirmation from employers to check length of employment and income. Along with right-to-rent and ID verification processes.
If you want to go a step further or if you have suspicions, you could contact the local anti-social behaviour officer at the local council for the previous address, just to make sure they are not known to them.
JUMP-PAD LIMITED, 34-34a High Street, Newton-le-Willows, WA12 9SN, England
Place of registration: London |
Registered number: 09692470 |
VAT number: 351947285 |
Telephone: 01925 351 871 |
Email: info@jump-pad.co.uk
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