As a new private buy-to-let investor having made your first property purchase it can be a daunting time dealing with the (initially) complex task of letting your property. One of the key requirements for most landlords is an appropriate tenant reference. Think of it this way, if you are about to let a property with a rent of £750 pcm (£9,000 per year) that is a lot of trust you are placing in a tenant. 

Some new landlords may think it is not such a problem, as soon as they miss a rental payment you will ‘kick them out’ of your property.  The reality is you cannot do this without applying to the courts for eviction, the process can take months, and in the mean time the tenant could pack their bags and move out having been in the property “rent free” for several months  Worse still they may have left you with damages and other debts.

So ask yourself these questions:

• Do I know the identity of this tenant,is it genuine so that I could later trace them if they let with debts owing?
• Is the tenant I am about to let to encumbered with large unpaid debts and being pursued by a  third party for County Court Judgements?
• And how can I assess what the overall risk factor is for the tenant about to take on my property?

These are just some of the questions that can be addressed with an appropriate tenant reference.  Companies such as Credit Check Services will provide a tenant reference from just £8.95 (as at July 2009) for a CCJ / Bankruptcy check based on a full linked address search. For just £18.95 (Gold report option – as at July 2009) they will provide a report including a tenant risk rating and additional identity checks.

Don;’t get caught out, make sure you get an appropriate tenant reference before letting your property.