20th April 2016 | Advice for Landlords

How to carry out tenant screening

tenant-screening-credit-checkTenant screening is perhaps the most important part of a landlord’s job. Carrying out tenant screening incorrectly can lead to a loss of income and ultimately harm your reputation as a landlord – so it’s crucial it’s done correctly.

Carolyn Uphill, Chairman of the National Landlords Association (NLA), has said that they “hear time and time again from landlords who have suffered because they failed to properly vet their tenants before granting a tenancy”.

And tenant demand is growing – in October 2015 the NLA reported that 40% of landlords were seeing an increase in demand in their area. Therefore it’s now more important than ever to be sure that you are letting or renting to the right person.

So how do you properly screen someone who wants to be a tenant?

To make sure you don’t get caught out we thought we would share some of the key steps for how to conduct tenant screening properly.

Before the tenancy begins

Should an applicant not pass screening for one or more of these points or is deemed to be in a ‘risk category’ (e.g. a student or unemployed), a guarantor agreement can be used to protect you against a payment default.

After the tenancy is underway

Tenant screening reduces your risk as a landlord and should be taken seriously. By following the steps listed above you’ll be well on the way to safeguarding yourself against potentially unsuitable tenants and giving yourself peace of mind that your property is in good hands.