Landlords who fail to carry out checks on prospective tenants are putting themselves at risk of rent arrears, according to the National Landlords Association (NLA).
The organisation is urging landlords to conduct tenant reference checks to make sure people who sign tenancy agreements to live in their properties can afford to pay the rent.
It warns that it could take up to six months and cost up to £6,000 to resolve a situation where a tenant fails to meet their rental payments.
A simple tenant reference check will reduce the risk of this happening by allowing the landlord to confirm whether or not the tenant is in full employment.
They can also find out and whether the tenant has any county court judgements or has been declared bankrupt, the NLA points out.
Such checks are invaluable at a time when increasing numbers of people are choosing to rent and many more landlords are entering the buy-to-let market to take advantage of the demand.
Meanwhile, the NLA is encouraging landlords to bring their knowledge up to speed on Energy Performance Certificates, which they will be legally required to provide to prospective tenants from October.
Published on: July 21, 2008