Tenants at risk of failing credit checks

by Daniel Jones

Landlords may have greater need for a Tenant Checking Service, as an increasing number of tenants fail to meet financial criteria.

Tenants are struggling to meet the income requirements being laid out by credit referencing firms, reports the Financial Times, which is becoming yet more of a struggle as landlords demand weeks of rent up front.

In some parts of central London, landlords require six weeks' rent as a deposit for a property costing £6,000 a month and that their potential tenant earns a minimum of £60,000 a year.

Other cases see landlords demanding a Rent Guarantee Agreement from their tenants as people rely on family and friends to ensure they can secure a property.

The individual selected is then responsible for meeting the rent and all the obligations of a tenant if they default on their payments.

In the current financial climate, landlords are being forced to seek alternative means of securing their income.

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Published on: August 4, 2011

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