Should you use a tenant referencing service?
Using a tenant referencing service can provide landlords with several benefits
Some landlords like to carry out the referencing process themselves, so that they can find out first-hand what the tenant is like. This approach is most likely to work for professional landlords who have time and experience on their side.
For landlords who aren’t sure what to look for, a professional referencing service such as TenantVERIFY, part of the Hamilton Fraser family, is likely to be a safer option. Serial bad tenants who move from property to property, conning landlords and tenants with malicious motives, will often target private landlords who carry out reference checks themselves.
If you are in any doubt about a prospective tenant, or if you have little time to spare to carry out a thorough background check, employing the services of an established referencing provider, who will have professional indemnity insurance, will be money well spent.
Their report can then be used in in conjunction with your own checks and gut feel. Some landlords will visit their prospective tenants at their current address following a professional reference check, to complete the tenant application form and get a feel for who the tenant is and what condition that tenant keeps the property in.
Professional referencing costs can vary depending on the company you use and the type of background check you need. TenantVERIFY offers a basic and comprehensive service, as well as a guarantor comprehensive check and a fast comprehensive check.
We recommend the comprehensive service to make sure you are meeting the requirements for the four point referencing check required by most insurance policies, including ours.
Referencing now, especially during a cost-of-living crisis, needs to be a lot more stringent. Landlords are rightly fearful that they might end up with a tenant who won’t be able to pay the rent, particularly if their industry has been affected by the pandemic. I would always advise landlords to opt for a fully comprehensive referencing service.