People who run their own rental portfolios need to know they have good tenants / renters in their rental property.
It is a known fact that 75% of landlords, be it company landlords or small portfolio landlords, or even one property landlords do not carry out comprehensive and detailed reference checks on their potential tenants / renters!
There are two main reasons for this
(1) They do not know how to access a reputable, safe and secure tenant / renter referencing company.
(2) They do not have the time
The fact that a person, or company running a property rental business does not take up reference checks on potential new tenants / renters is quite frankly poor business practice!
The amount of time wasted, and stress created when a tenant. renter fails to pay their rent can be astronomical!
The idea behind a referencing check is to ensure that your tenant / renter is able to pass a number of checks that the credit referencing company applies. It is also possible for you to request certain criteria are included to make the reference check specific to your requirements.
With a favorable outcome from a tenant / renter reference check, you are in a much better position to know that you have a much better chance of putting a tenant / renter into your rental property who is less likely to be a problem.
On the other side of the coin, when you get an unfavourable result from your tenant / renter reference check, your decision to refuse occupancy can be justified.
With the continuing growth of products and services available on the internet, it is possible to source companies that can carry out referencing checks with the use of the internet.
Interestingly, the internet has allowed some major referencing companies to expand their services, and allow them to offer safe and secure referencing systems in more and more countries throughout the world.
There are safe and secure systems available online which protects the data collected on behalf of the tenant / renter, and do not "invade" their privacy.
In fact some companies have a process in place where it is the tenant / renter who is seen to request the reference be carried out, and, because they have instructed the referencing report, it leaves a "soft" footprint on their credit file.
A good referencing company should be able to return a comprehensive referencing report in a timeous fashion, thus ensuring that the rental property owner is able to speedily reject any unsuitable applicants and concentrate on applicants with a satisfactory profile.
Whatever referencing company you use, you should ensure that their charging structure is not complicated, is easy to follow, and offers the choice of allowing you or the potential tenant / renter to pay the fee for the referencing check to be carried out.
It does not matter what part of the world you are operating your property rental business from, a good referencing company should look at
- All historical finance records and credit data
- Criminal background checks
- Fraud registers
- Terrorist registers
- Publicly accessible records
- Address histories
Using the above information, you should be presented with a report and recommendations from the referencing company.
This is going to make your life so much easier, as you will know that the referencing report has covered many aspects of a potential tenant's / renter's financial history that would have taken you so much time to research yourself.
You now have more time to spend on other aspects of your business!