Legal 4 Landlords – a service provider for landlords and agents, including tenant referencing – have reported that 74% of applications they have dealt with so far this year have been accepted, compared with 68% last year.
They also found that the proportion of applications that needed to be backed by a guarantor had fallen from 25% to 20%.
Failed reference checks commonly fail due to the applicant providing false information about their earnings, lacking an employer’s reference, or being employed on a different contract than stated. Bad credit history and failure to produce a reference from an existing or previous landlord don’t help either.
If a Tenant fails a reference check Let-Leeds always gives the Tenant an opportunity to provide a Guarantor on the tenancy.
The increase in the demand for rental properties, Legal 4 Landlords believes, is the reason for more applicants passing the reference checks. A large number of these new tenants have good credit and jobs, though are unable to purchase a home. Beggars can’t be choosers, but it seems landlords can be more selective.
Sim Sekhon of Legal 4 Landlords said, “This development is great news for landlords and agents who can cherry-pick the best tenants.”
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