You can't judge a book by its cover, so in the lettings industry we take up references and conduct credit checks when placing a tenant.
It’s all about building an accurate picture of a person and forecasting how they might conduct themselves. We’re always trying to evaluate the risk: will the tenant be able to pay the rent, look after the property and abide by the law?
However, even the best judge of character – armed with the results of stringent checks – can be misled.
Recently there has been an incident where a tenant presenting as a full-time employee (and backed up by references) was actually in receipt of housing benefit and failed to pay a month’s rent in full from the outset. As well as leaving the landlord unable to pay his mortgage on the property, the tenant fled, leaving behind all her possessions and a mountain of detritus. This two-year battle remains unresolved.
Property managers, agents and landlords need to be on red alert for tenants turning bad.
Although not quantifiable just yet, there is expected to be a lettings exodus of some sorts, with tenants in the private rented sector moving into the home ownership one, aided by the introduction of the Help to Buy mortgage guarantee scheme.
This means the battle for tenants could intensify and perhaps landlords may be less discerning in their choice of tenant – especially in the face of possible void periods and rising interest rates.
The war against turncoat tenants can be won with professional management. This should include the systematic adoption of watertight referencing and credit checks, and the scheduling of regular property checks.
There is no room for skimping or rushing in this ever-changing lettings landscape.
* Kate Campbell-Balcombe is operations director at an inventory company.
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