A controversial system to rate tenants and help landlords select the correct type of clientèle for their properties has been launched in Croydon.
The scheme devised by local landlord Steve Hanbury will invite other local landlords to rate their tenants on a number system which will enable local buy-to-let investors to inspect the tenant history of prospective customers. The scheme will rate good tenants on a 1 to 5 basis with those not considered quite so good rated between 6 and 8. Landlords rating tenants between 6 and 8 must provide evidence as to why they rate them so badly. The ratings will be put on the website for those registered to see and tenants will be able to contest their rating if they feel it is unfair. Tenants will only be rated when they leave a property.
Mr Hanbury explained: “We have got a portfolio of some 50 properties, mainly in the Thornton Heath area. We have had good tenants but also not-so-good tenants, which means we have lost huge amounts of money in the past. There are websites which set out to identify bad tenants – we are not one of those. We believe that tenants with a good rating under our scheme will be able to impress future landlords, which will make it easier for them to find a new tenancy when they need it.”
Tenant arrears are becoming more of a problem for many landlords as the financial downturn continues, and although a good landlord insurance policy can protect property investors to a certain extent it remains a worry for many. Local landlord John Cooke said: “I have not signed up to this website yet but can see its potential. The last thing any landlord wants is a bad tenant and spending a few pounds to avoid that is definitely worthwhile.”