Northampton Landlords – Why You Must Vet Tenants
28th November 2019
28th November 2019
Being a landlord is often a challenging task, but the standard of the tenant in your rental accommodation dramatically influences the amount of work you must do. When you have a good tenant who pays on time and in full, you have fewer financial worries. When the tenant treats the property with respect, you have less maintenance work to take care of.
Therefore, the importance of having a reliable tenant in place should be apparent, and this is why you must vet tenants. If you are not comfortable with vetting tenants, you must call on an expert to do this work for you. Not everyone is happy looking into other people’s finances or behaviour, but given the importance of tenant vetting, it is not a task you can overlook or dismiss.
You have a legal responsibility to vet tenants. It is essential for landlords in Northampton, as it is for landlords and agents across England, to carry out a Right to Rent check on tenants. A failure to do so may result in a fine of up to £3,000 per tenant. This is a significant sum of money, so it is advisable landlords undertake this step before admitting a new tenant to their property.
There are many things landlords can check when vetting tenants, but a sensible place to start will include reviewing three months of payslips and bank statements. This information will hopefully allow you, or your agent, to determine if the tenant can afford to let from you. Don’t just look to see if the tenant can afford to pay rent, make sure they have sufficient funds to pay for a range of outgoings over a month.
You should also ask for references. You can ask for a recommendation from an employer or even a previous landlord. Just because a tenant looks as though they can afford to pay rent each month doesn’t mean they should be accepted as your tenant. If you speak with the tenant’s previous landlord and they have a track record of treating rental properties poorly, you may be better served in accepting the application of another tenant.
An essential party of the vetting process includes meeting the tenant. This should take place before you agree to let to the tenant, as it will provide you with the chance to get to know the tenant. Considering the sums of money a landlord invests, and the importance of receiving rental income every month, your choice of tenant is one of the most significant decisions you will make. It is not unreasonable to want to be as sure about the process as you can, which is why you should look to meet the applicant, and get to know them.
If you’re a landlord in Northampton and you are looking for support and guidance in letting property, please get in touch. At Merrys, we are pleased to offer a wide range of services, including valuing your rental property, and we look forward to assisting you as much as we can.