As a new university intake prepare to leave home for the first time, landlords in the cities that are getting ready to welcome them have been warned to reference check their prospective new tenants before offering them a contract.
With demand for university places at record highs this year, due to many students wanting to avoid the increase in tuition fees coming in next year, many property investors have been purchasing landlord insurance on new homes to take advantage of the extra business. There seems little likelihood of any good landlord experiencing difficulty in securing tenants for the university year, however, Landlord Assist, a company who specialise in tenant eviction, insist that landlords must be wary about the new influx of customers.
Graham Kinnear, the Managing director of Landlord Assist, explained just how important checks were for landlords saying “Referencing is a very important part of any tenancy agreement and should be standard practice for any landlord whether the tenant is a student or not.
“Although a full financial check may not be possible due to the students limited credit history, carrying out employer checks and referencing their parents will help landlords to paint a vivid picture of their character and should give a good indication of whether they can afford their rent or not. Generally speaking students should have a guarantor to support their application given that, as students, many will only have had a part time job or indeed no employment record at all.”
There is no doubt that many landlords regard student letting as a profitable venture, and indeed because of their willingness to share rooms, student tenants can bring in more revenue than alternative sources. Reference checking can be expensive but may save a landlord money in the long term.