PropertyRisks says that landlords letting to students and other first time tenants need to be sure that they reference the potential tenant and any guarantor that they may name.
Nigel Atkinson (right) of PropertyRisks says, “The latest research specifically on student rentals indicates that this year rents have risen by three per cent. Not surprisingly London has reached an all-time high, but unexpected locations such as Leamington Spa and Newcastle-under-Lyme have experienced double-digit rises.
“This situation is reflected on the broader rental scene where there is strong demand that will push rentals higher. At the same time, the economic situation means that more people are likely to be renting for the first time, and, like students may not have any rental history to base a reference on. In such circumstances it is common practice to have a guarantor for the rent, but it is essential that the referencing process also includes validation of that guarantor and verification that they are in a financial position to fulfil their obligations under the rental contract. Landlords can, of course, protect themselves with legal expenses and rent guarantee cover, but this will be dependent on satisfactory referencing of both tenant and guarantor.”
According to PropertyRisks, referencing should include authentication to ensure that the tenant is who they say they are, checking of linked addresses, validation of employer references and tenant history. This verification should also extend to any guarantor involved.
Nigel Atkinson: “A guarantor should be as carefully referenced as the tenant themselves, after all, they will be the party that needs to be pursued if the tenant defaults. As with employer references, it is important to be sure of the source
of the information. Guarantors using personal email addresses, such as Hotmail, or mobile telephone numbers should only be accepted if they have been verified and authenticated with a full audit trail to support.”
