Why we care.
Carrying out thorough tenant referencing is one of the most important obligations Hearthstone Ltd undertakes. When asked to let a property for a landlord, tenant background examinations are the first step we take. It helps limit the risks from loss of income and damage to a hard fought for investment property.
Tenant referencing and Right to Rent checks corroborate a tenant is who they say they are. This gives comfort that tenants have the financial means to pay the rent on time every month. They have permission to live in the UK, and ultimately can be entrusted with a landlord’s greatest asset, their property.
Is Tenant Referencing foolproof?
Of course, even the most detailed referencing is not a guarantee. Having information on a person’s identity, credit history, possible County Court Judgements, employment references and their track record as a tenant from previous landlords, is a good place for letting agents to start. This minimises the risk and filters out possible ‘bad tenants’.
There is a danger though, that landlords and agents can be too eager to get tenants approved. An open mind is always important. Of course, talking to your tenants and building a relationship is arguably much more important. Landlords who use Hearthstone Ltd, where fees only come from the management of the property, have the reassurance that the advice they receive is unbiased and focused on the best interest of their investment.
Who Pays for Tenant Referencing?
Some agents believe that the cost of tenant referencing should fall to landlords once the tenant fee ban is introduced. Fears that additional costs for landlords will induce them to move their business elsewhere, must reassure their clients that tenant referencing is money well spent.
Hearthstone Ltd would like to remind its landlords that a thorough, detailed reference is essential. Our referencing ensures tenants making a home in your rental properties have been thoroughly checked. They will be recommended as reliable.
“Letting agents can play a vital role in both educating and reassuring landlords by demonstrating a thorough approach to referencing and reinforcing the message that prevention is better than cure,” said Faulkner, managing director of Propertychecklists.co.uk
Business as usual.
Whilst the government and industry lobbyists debate who should have to pay the fees, Hearthstone Ltd will continue to carry out rigorous background checks on prospective tenants before we let any property. This is after all best practice, we will continue to help protect the landlord’s business, now and in the future.