33% landlords do no background checks
on tenants!
Sunday 15th March 2009
Property of the Week from Property Mentor Workshop
Area – Gloucestershire
Property type – House
Number of Bedrooms – 4
Length on Market – 3 Months
Valuation – £264,995
Positive Cash Flow – £967 per Month
Click here to see the testimonial videos
In a survey conducted by Paragon Mortgages nearly 33% of landlords never run a background check on their tenants – a check that could prove to be the pivotal difference between finding a quality tenant and a bad one.
Traditionally a landlord would be expected to perform a series of credit/ background checks to ensure that their tenants can afford their rental property. For example the following precautions:
Identity verification
Employment status
Credit/financial history
References
Yet as this report by Paragon proves a startling number of investors choose to not perform this search.
Continuing in their survey Paragon found of the 1,000 investors questioned that nearly 14% of them – at some point in their career – had been forced to evict a tenant due to them falling into arrears.
This figure is further confirmed by the National Landlords Association. In their annual company review they reported that 75% of their calls were from property investors asking for advice on rental arrears.
What can investors do to prevent this?
In light of the current financial climate, the surest way to secure your rental property and your monthly cashflow is to make your tenant fill out a Tenant Application Form.
By utilising this simple form you can acquire the following details about your tenant: their property details; employment status; previous/current landlords references and their bank details.
Plus at Property Mentor they will offer you the tools and resources you need to ensure your property investments experience the best possible income.
During the 2 hour taster session, you will learn that how it is possible to invest in property, using little, if any, of your own money with no prior experience and earn a guaranteed positive cash flow of £500-£1,000 per property, per month for the rest of your life.
Click here to book your free Property Mentor Taster Session
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