How can I check out my rent to renter?
Given the risks inherent in rent to rent, it’s important for landlords to check out a prospective rent to renter thoroughly.
Given the risks inherent in rent to rent, it’s important for landlords to check out a prospective rent to renter thoroughly. Unless you are dealing with a local authority or a reputable specialist company it would be prudent to have an application form for this purpose, pretty much as you would when taking on a tenant – this establishes and records the facts as a starting point.
Very often the rent to renter will be a limited company, so initial checks can easily be carried out online via the Companies House website. This can be followed up by background checks, carried out by one of the many credit reference agencies. It may also be prudent to get personal guarantees from the directors, so individual credit checks can be carried out on them as well.
You should be looking for experience in managing lettings and a successful track record. You can ask to be put in contact with previous landlords who they have dealt with on rent to rent, asking them for a reference, and you can ask around to establish the rent to renter’s reputation. Don’t overlook the power of a Google search which often reveals much background information, both good and bad!
Obviously, discretion is needed with these checks and judgement is required as to how far to go – perhaps only minimum checks would be needed with a local authority rent to rent arrangement, whereas maximum checks would be needed for an unknown individual who is looking to rent to rent.
The rent to rent market has been blighted recently due to the amount of unprofessional and opportunistic operators in the sector. It’s essential that landlords carry out their own due diligence into any company or individual that they are going to trust their property with. Simple checks on Companies House and review sites can potentially save a lot of stress and financial loss. This is an absolute must do before entrusting someone with the keys to your property.”