![\"Tenant](\"https:\/\/dev.withcreative.co.uk\/lforl\/wp-content\/uploads\/2019\/02\/Reference-Checks-1024x684.jpg\")
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In business, success requires a close eye to be kept on income and expenditure. It\u2019s no different in property rental, and in a climate of tax changes, increasing regulation and the knock-on effects of the agency fees ban, cutting unnecessary expenditure makes sense. It is easy, therefore, to see why some landlords are choosing a bargain basement tenant reference, but it\u2019s a move that could be a huge mistake.<\/p>\n
A cheap reference will give you an<\/em> answer, but it\u2019s not based on all the facts. It\u2019s possible, if the fates are on your side, that you\u2019ll get away with it, but It could be an economy that ends up costing you a fortune. If you miss just one month\u2019s rent, you could be, say, \u00a3750 out of pocket and in the face of that, the few pounds you saved on the reference start to look a little sick.\u00a0 If you end up with serious arrears, the cost of an eviction, property damage and a lengthy void period until you manage to secure another tenant, that\u2019s more than nasty.<\/p>\n Recent figures from The English Housing Survey show that on average tenants stay in a property for 4.1 years. Using that assumed \u00a3750 per month rental figure again, the income over the lifetime of the tenant\u2019s stay is \u00a336,900. What percentage of that is the cost of a reference? \u00a0It\u2019s a tiny figure. If you pay \u00a318 for a quality reference, you\u2019re talking 0.05%.<\/p>\n The percentage may be tiny but the potential impact of it is huge. Yes, you may be able to squeeze that percentage smaller with a less-detailed reference but if that\u2019s at the cost of your income stream it\u2019s a false economy. Saving a few pounds could easily cost you hundreds or even thousands. The landlord considering the application of a potential new tenant has only a certain amount of information on which to base his judgement. But it makes little sense to restrict the information available when the savings from a basic reference in no way compensate for the increased risk.<\/p>\n There are substantial differences between tenant referencing providers. Some offer little more than rudimentary checks while others, ourselves included, offer a more comprehensive range of checks and balances. At Legalfo<\/em>rLandlords, we also make a point of ensuring that we offer referencing for all types of tenant, and we\u2019ve introduced a RentalPassport \u2013 the tenant\u2019s own personal reference. Our service is thorough, but because we understand that speed is of the essence, we\u2019ve developed systems and software that ensure we can provide swift answers and visibility of progress. Some providers make a big deal of offering \u2018traditional\u2019 referencing, but we combine the best traditions of diligence and customer service alongside advanced and effective technology.<\/p>\n The ideal for many landlords is a tenant that stays long term, pays every month on the due date, looks after the property and reports niggles before they grow into expensive problems. Although there are calls for longer tenancies to become the norm, the average shows that many tenants are in effect already enjoying something like that. There is a relationship between landlord and tenant that is based on trust which builds over time. A reference shouldn\u2019t be seen as an expense. It should be seen as an investment \u2013 an investment in finding the tenant who will respect your property and ensure your income is regular and sustained.<\/p>\n Of course, even the very best references cannot predict the future, and the initially perfect tenant could get into difficulties, but there are other modest investments landlords could make to protect their interests. Again, like the costs of a reference, the upfront costs of Rent Protection insurance are tiny in the scheme of things.\u00a0 What\u2019s more they can give landlords peace of mind and that isn\u2019t something you can put a price on.<\/p>\n Whenever you are trying to control costs, look beyond the immediate effect. The bigger picture \u2013 just like a more detailed tenant reference \u2013 is far more revealing, and it\u2019s and well worth the investment.<\/p>\n","protected":false},"excerpt":{"rendered":" In business, success requires a close eye to be kept on income and expenditure. It\u2019s no different in property rental, and in a climate of tax changes, increasing regulation and the knock-on effects of the agency fees ban, cutting unnecessary expenditure makes sense. It is easy, therefore, to see why some landlords are choosing a […]<\/p>\n","protected":false},"author":2,"featured_media":5580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,1510,2173],"tags":[1804,21],"yoast_head":"\nA less detailed reference is a false economy<\/h3>\n
Relationship based on trust<\/h3>\n