Good news for landlords! Overall, tenants who are finding themselves falling into rental arrears have dropped, with the latest figures showing a drop in households who are struggling to meet their payments.
Reports have shown that 82,900 households were in rent arrears in the final quarter of 2015 – 1.6% of tenancies in the UK, in comparison to 84,200 in the third quarter of the year.
In the first quarter of 2008, 2.9% of all tenancies were in serious arrears, however this period of uncertainty did coincide with the start of the economic downturn, which could explain the unusual hike.
With climbing property prices meaning that more and more households are relying on the private lettings market rather than choosing to buy, it is important that landlords can be sure that whoever they let their property to is able to afford the rent.
Referencing checks are a good way to ensure the financial history of your prospective tenant, and gather information on their employment, income and whether they have ever had a history of falling into rental arrears before.
Whilst you can never predict what will happen in the future, you can at least enter into a new rental agreement with a clear idea of the financial viability of your new tenant.
For more information on Referencing, contact the team at Urban.co.uk on firstname.lastname@example.org, or 0800 689 9955
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