In this three-minute read,
we look at what can go wrong if you side-step tenant reference checks and wind
up with a bad tenant.

New landlords often flirt with the idea of ditching
traditional tenant selection processes and taking a DIY approach instead.

After all, there are so many ways to source tenants
these days – like Gumtree or social media – why bother with anything else?

Trust us, side-stepping a formal selection process may
seem like it might save you time, but it can be so much costlier in the long
run.

Wind up with a bad tenant and you can expect:

·
Sleepless nights.

·
Sky-high legal bills.

·
Lost income.

·
Property damage.

Let us explain more about the risks of skipping
proper reference and credit checks.

If you use an online platform like Gumtree

The internet has made it easier for landlords to
find tenants, but not easier to find goodtenants. Post an ad online, and you’ll get
lots of responses – but many of them will be from time-wasters and con artists,
not genuine candidates. Professionals are more likely to use a traditional
bricks and mortar letting agent because they’re wary of getting ripped off in an
online scam.

Tenants aren’t the only ones to fall prey to online
scammers; landlords can be targets, too. Online crooks often use ‘to let’
adverts as ‘phishing’ opportunities. They pose as tenants to get as much
information as they can about you and your vacant property, before they get to
work fleecing you.

If you let to a mate or relative after asking around
on social media

You may be tempted to ask your contacts on WhatsApp
or Facebook if they’re looking for a place to rent. But be warned: things can
get very messy when you blur the lines between personal and professional. If
things don’t work out, it could cause a major family fall-out or friendship
rift.

Sometimes, when a landlord knows the tenant, they
don’t bother with a contract. Please, never, ever do this. If you do get into a
dispute later, your legal options will be limited.

Some buy-to-let mortgages prevent landlords from
renting to a family member or friend. Always check the fine print before making
a decision.

Insurance companies often get twitchy if the tenant
is a relative. In some cases, your cover is invalidated if the tenant is a
family member. In other circumstances, you won’t be covered if you haven’t
conducted reference checks.

What’s the alternative?

Here at CWB Property, we
have a gold standard tenant selection process that offers you peace of mind and
legal protection. It involves screening candidates by phone, in-person
interviews, and rigorous reference, credit, and employment checks.

If you want to know more, contact us here at CWB
Property.