What makes a good tenant in 2024?
On the outside, selecting a good tenant may feel as simple as accepting the person who makes the highest offer, especially if the most recent news is to be believed. A survey undertaken for the New Economics Foundation found tenants were willing to go to extreme financial lengths to secure a rental property. As a result, landlords have had the luxury of waiting for the ‘highest bidder’ to emerge.
In fact, New Economics Foundation’s figures found 4 in 10 tenants were paying £1,200 a year above the advertised rent for their home, with fierce competition forcing renters to keep making offers until they’re the last man standing. The median amount paid over the asking rent was £100 a month (12%), with the mean amount £190 a month.
Music to a landlord’s ears? Of course but there is much more to moving in the right renter and protecting a property than money. One of the survey’s responses gave insight into the wider picture that forms tenant selection. Of those questioned, 19% of tenants were asked to supply a copy of their CV to the landlord.
Tenant referencing is there to check the holistic picture. Anyone can say they can pay the advertised rent but they have to have the financial means to back up their claim. Equally as important is how a tenant behaves. There’s no point rejoicing at a handsome monthly fee when the landlord has to pay substantial amounts of money to rectify any damage done to the property.
Our referencing process ensures the bigger picture is presented to the landlord, allowing them to make a decision based on risk rather than just financial reward. Considerations when choosing a tenant should include:
Qualifying status to rent in the UK: ensuring the tenant has the right to rent in the UK by following a set ID and document checking process (a legal requirement).
Past payment reliability: looking into whether the tenant has ever missed rental payments or been evicted due to rent arrears.
Income verification: checking that the tenant earns enough money to cover the rent, noting the regular amount paid in by an employer.
Credit history: looking for signs of ‘adverse credit’ and for evidence that the tenant has a poor history of paying bills on time.
Ability to pay rent upfront: if the tenant offers to pay six months’ of rent upfront, checking for proof of funds.
Ability to supply a guarantor: noting if there is a suitable family member or friend who could become a trustworthy guarantor – one that would themselves pass referencing checks.
References from employers: investigating whether the person is employed by the company they say, whether they are in a probation period and if they are a reliable employee.
References from past landlords: hearing from past landlords on matters of anti-social behaviour, ability to pay the rent (and to do it on time), whether they had sublet the property and what condition they left their past home in when they moved out.
There are signs that rental demand will continue to be high throughout 2024. We are experts at handling demand and any ensuing bidding wars, using our referencing process to put forward the most authentic and reliable renters. Please get in touch if you would like help with finding a tenant in 2024.
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