As tenants keep moving from one place to other, it's the landlords' duty to keep searching for new tenants.
To make this cat-mouse relationship a sweet one and sustainable on a long-term basis, tenant checks have become a mandatory.
Why? Landlords believe that it is vital to have information about potential renters, before letting their property to them.
A comprehensive tenant reference is the growing current trend in tenant screening process and there are several companies that provide with several kinds of tenant screening reports, made to suit the landlords' requirement.
These reports are made available to the landlord upon a payment of some specified fee, and this is how tenant referencing began taking a shape of sub industry in the growing realty industry.
What is the kind of tenant checks report available for landlords? There are different reports; covering banker's reference on the tenant or those that will help you analyze whether or not to enter into commercial lease agreements with certain individuals.
It entirely depends on what kind of report a landlord requires.
Most reports cover some basic information about tenant checks.
These include but are not limited to: -Credit history search of tenants (6 years is the minimum period) -Cases of defaults, arrears or repossession, if any -Validation of references given by the tenant -Suitability check of the guarantor -Previous address verification -Identity checking to catch on the alias name fraud -Affordability analysis through income verification -Delinquent tenant database search to analyze rent guarantee parameter How are the potential renters judged for tenant checks by the companies that provide with tenant referencing as a service is an art and science in itself.
And noteworthy is that the data provided by tenant referencing companies is not merely a credit check report.
People work effectively to provide with a thorough report on the tenant check to ensure that the business of checking tenant reference continues to grow.
Some of the reliable databases, based on which a tenant reference report is made include: -Experian Consumer Credit -Equifax Locate Services -RSA High Risk Tenant Repository -Call Credit Consumer Scoring Systems -Dun and Bradstreet -International Credit Reference agencies Apart from the raw data from these sources, there exist some inherent algorithms based on tenants' past credit history of these tenant referencing companies, to find out the suitability of the tenant to continue paying rent.
All said and done, why do some prospective tenants fail the tenant referencing process? -Gap in employment: The employment of the potential renter have to be continuous, at least six months to pass in tenant check report.
-CCJ against tenant's name: In many cases County Court Judgments (CCJ) show up against the name on a credit check report for many years, even after it has been resolved.
This earns the potential tenant a negative mark.
-Poor Credit score: Default in credit card payment, that might have been due to an exigency is going to have adverse effect on tenant reference check.
-Income to rent ratio: Income needs to be 2.
5 times more than the amount of rent paying.
Tenants cannot so undeclared payments as income, and in many cases the potential tenants might not have income slip that reflects it to be 2.
5 times more than the amount of rent.