03 Oct Tenant Background Checks – What are they and why are they important?
If you read our previous article on ‘The Importance of Obtaining a Previous Landlord Reference’ then you will be well versed in the process of tenant referencing and why it is so integral as a landlord. Tenant referencing is a term which will be very familiar to you if you are or have been a landlord, tenant or letting agent. It is a crucial and compulsory part of the process of property rental and is of immense importance to landlords to protect them against unreliable tenants who may leave them in rental arrears of with property damage. Under the umbrella of tenant referencing comes a plethora of processes, including those within the domain of tenant background checks. This is a hugely important part of the process, therefore here at Van Mildert, we wanted to put together a synopsis of this aspect of tenant referencing to help you understand it further…
What is a tenant background check?
Tenant background checks are a tenant screening process which scans and assesses the reliability of a possible tenant through examining credit reports, financial history, employment history, criminal records and much more. Think of it like a risk assessment!
The question to ask yourself is ‘how much do you really know about the person you’re giving access to your property?’ – Tenant background checks ensure that you have a comprehensive set of answers to this question! Whether you’re a letting agent acting on behalf of a client or you are a landlord working privately, background checking your potential tenant will give you a great deal of peace of mind knowing they are a trustworthy individual.
What are the benefits of a tenant background check?
Tenant background checks can be hugely beneficial if you are a landlord as they can greatly reduce the risk of letting your property to unreliable tenants. As a landlord it is vital to protect your property assets, especially if you are a private landlord, therefore tenant background checks ensure you are vigilant with your prospective clients and do not end up in trouble later down the line.
FACT: Every year landlords in the UK are out of pocket to the tune of over £5 billion as a result of damage to their property and unpaid rent!
Tenant background checks will minimise the risk of rental arrears, damage to your property and potential related court cases and legal costs by shedding light on an individual’s financial background, criminal record and other alarming information. Be vigilant and do not hand over the keys to your property without conducting a tenant background check!
TOP TIP: Another way to ensure that you are not left in rental arrears is to take out rent guarantee insurance. Even with a very thorough referencing process, you may be left vulnerable to a problem with a tenant arising, such as unexpected redundancy, illness, divorce and so on. Therefore, Van Mildert work to further reduce your risks as a landlord by offering a comprehensive Rent Guarantee, which includes Legal expenses cover. This comprehensive insurance is available exclusively to landlords who have fully referenced their tenants through Van Mildert.
How do you background check a tenant?
The process of a tenant background check differs from company to company. However, here at Van Mildert, our service encompasses the following:
- Financial security check
- Credit history check – to scan the creditworthiness of a potential tenant
- We also scan and expose any court judgements, bankruptcies regular missed payments
- Any alarming information that could taint the reputation and reliability of a tenant
Don’t leave yourself lying awake at night worrying about your investment, keep yourself protected with our Van Mildert tenant background checking services. We promise to deliver a service that completes background checks meticulously and consistently to an extremely high standard to ensure we select the best quality tenants for your property. If you are interested in our tenant referencing services please do not hesitate to enquire today by contacting us on 0191 256 0920 or email firstname.lastname@example.org.