Date Published 01 October 2013
A tenancy referencing firm says that a higher number of tenants are getting through referencing and being accepted for tenancies.
Legal 4 Landlords, which provides services for both agents and private landlords, said that last year, 68% of applications were accepted compared with 74% currently.
Last year, 25% of applications needed to be backed by a guarantor. This year the proportion has gone down to 20%.
Common reasons for tenants to fail referencing checks is if they lie about their earnings, or are employed on a different contract than stated, or fail to produce an employer`s reference. Failure to produce a reference from an existing or previous landlord can also lead to the tenant being failed, as is a bad credit history.
Legal 4 Landlords believes that the reason more tenants are passing reference checks is the sheer growth in demand for rented properties, meaning that landlords and agents are being more selective at the outset.
The firm says that a large number of tenants are priced out of home ownership, but nevertheless have good credit records and jobs – and are put through for reference checks which they are likely to pass.
Sim Sekhon of Legal 4 Landlords said: `This development is great news for landlords and agents who can cherry-pick the best tenants.`