Given the risks that are involved in selecting the wrong tenant are high, it’s not worth cutting corners trying to save the cost of tenant referencing. As a landlord, you’ve got a lot to think about so don’t be tempted to juggle too many jobs.
You may think that you could find out all you need to know from a prospective tenant just by asking questions about their job, income and previous rental history. And in some circumstances, you can gather quite a bit of information but there’s always a risk that you’ll miss something, or even worse, you’ll be lied to.
Instead, you’re better off leaving the job up to the professionals. You can request a tenant referencing report from most high street estate or letting agents but considerable time and money savings can be made by appointing a specialist tenant referencing agency. They have the experience and expertise to perform detailed checks and provide a professional and thorough report within a couple of days.
The alternative of running the tenant checks yourself can be difficult and time-consuming. This really isn’t necessary either as there are loads of tenant referencing services available which are reasonably priced. They tend to offer a range of packages with a varying number of checks performed.
How long does it take to reference a tenant?
The time it takes to complete a tenant reference varies depending on what type of reference is being carried out and how quickly the parties involved provide the necessary information. Generally, the checks can take anywhere from a few hours to a few days but most referencing agencies will produce a report within two to three working days.
What is a tenant reference fee?
The cost of tenancy referencing depends on which type of report you’ve requested. The more checks required, the more the fee with be.
A basic package tends to consist of a simple credit check of which the results are almost immediate. However, if you’d like peace of mind that your prospective tenant can afford to rent your property, then you may want to include previous landlord and employers’ checks to confirm reliability and validate income.
In most cases, the tenant is expected to cover the cost of the referencing. You may decide to refund the fee if the tenant goes on to rent your property but if they fail the referencing checks they won’t be entitled to recover the loss.
However, this is set to change with new legislation coming into force in Spring 2019. The Government’s Tenant Fees Ban will make it illegal for landlords and letting agents to charge fees for a tenant to secure a rental property which includes the cost of referencing.