Tenant Reference Checks London

London’s soaring house prices has meant that many people in the capital are being forced off the property ladder and are choosing rental accommodation in place of home ownership. However, the increasing numbers of people looking for homes to let also carries with it the risk of getting a bad tenant, which is the biggest fear for landlords and letting agents. To counteract this, letting agents are seeking more reliable vetting procedures and using professional companies such as Diligent Services to carry out their tenant reference checks. This article looks at the London rental market and how Diligent can give letting agents the ultimate peace of mind.

The London Rental Market

Property prices have climbed greatly in recent years. According to an article in the Daily Telegraph (October 2015), house prices in London and the South East have risen an incredible 42 percent since 2012, while rents have only increased by 19 percent over the same period. As a result, renting a property is fast becoming a more realistic option for singles, couples and families who can’t get a foothold on the property ladder.

It is not just London that has seen a rise in demand for rental accommodation. It’s a similar story for the rest of the UK. Here, rental figures have almost doubled: figures show 2.5 million Britons rented their property ten years ago, compared to nearly 5 million today. However, as London has the highest average house prices in the UK, at £522,000, renting in the capital is an even bigger trend as many people are forced to put their dreams of home ownership on hold.

All in all nearly a third of Londoners rent their property, and the majority of these are younger people – those in the 20-37 age bracket. The average property rents in London are around £1,500 a month, and although this figure is higher than the rest of the UK (where monthly rentals average at around £750), renting is a more appealing option for many Londoners compared to raising a hefty mortgage deposit. Consequently, the rental trend in the capital looks set to continue.

What Does this Mean for Property Owners?

With such a high demand for rental accommodation in London, a buy-to-let can be a very lucrative investment. However, unfortunately for landlords renting doesn’t come without its pitfalls. Renting to just one bad tenant can spell disaster for the property owner. Most of us have heard stories of tenants damaging property or falling behind on their payments, or both. Yet, despite damage or lack of property income, landlords still have keep up their mortgage payments – even if the money isn’t coming in.

Unfortunately for landlords, bad tenants aren’t all that unusual, so the risks of investing in a buy-to-let are very real. According to an article in The Telegraph, almost six out of ten buy-to-let owners in 2012 had problems with tenants not paying their rent. Statistics also show a rise in the numbers of landlords having to carry out eviction proceedings.

The Solution

Fortunately, there is a solution. To avoid such pitfalls, it is important to pick the right tenant from the start, which will save on costs and stressful lengthy eviction processes in the long-run. A company such as Diligent Services will carry out thorough tenant reference checks to give letting agents - and ultimately landlords - valuable peace of mind.

Diligent is a London and UK wide letting agents' only service. We have experience in handling over a million tenancy applications and offer a swift and efficient service to minimise experiences with bad tenants. And, our services don’t stop there! As part of our tenant referencing services, Diligent offer a complementary legal expenses protection, which can be upgraded to include rent guarantee.

Tenant Reference Checks London - Click here to find out more about how Diligent Services can protect your business and give you the ultimate peace of mind.