An interesting article in the Property Wire this week highlighted the problems associated with rogue letting agents and inexperienced landlords not carrying out sufficient ID and financial checks when letting out properties.
They focused on new research from the insurance agency Landlord Secure who found that only 22% of tenants were required to provide proof of funds, which could lead to all sorts of problems including having a tenant who isn’t able to pay their rent. With only 52% of tenants being asked to provide ID documents which they are now required to do so by law.
These are worrying statistics as new laws introduced in February 2015 state that if a landlord rents to someone who doesn’t have the ‘right to rent’ then they could face a substantial fine. Landlords and letting's agencies have to take a copy of an original a piece of identity such as a current passport if they are a British Citizen or that they must provide supporting evidence such as a visa or paperwork to show that they are allowed to legally remain in the UK. Further information can be found on the Government's website.
Their findings also showed a significant gap between the perception of a landlord about what financial checks their future tenants go through and the actual reality.
In order for landlords to avoid these potential pitfalls they really need to make sure that they use a properly regulated, ARLA, Association of Registered lettings Agents, such as Finch & Co. As they will do all of the relevant checks to make sure that your investment is in safe.
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