Renting gets competitive....

Experts are predicting a bright future for the rental market in 2013, but warn that lettings agents will need to screen tenants thoroughly. As demonstrated by the recent publication of the 2011 census data, renting is increasingly becoming seen as the only long-term option for a large number of people, rather than the short-term stop-gap it once was. This means that there are now a large number of potential tenants competing for each rental property on the market and James Davis, CEO of Upad lettings agency, suggests this means landlords can now take their pick of "quality" tenants. He said: 

"Those who will look after their property, pay the rent on time and in full and be responsible renters are sure to be preferred by landlords and I foresee full tenant referencing and rent guarantee agreements becoming the norm in 2013."

This prediction has been made at an incredibly appropriate moment as the recent release of figures showing 7.8 million Brits are struggling with housing payments, thus reminding letting agents of the importance of carrying out adequate financial checks on potential tenants. The statistics, provided by housing charity Shelter, also reveal close to a million people resorted to taking out a pay day loan to cover the cost of their rent or mortgage. Campbell Robb, chief executive at Shelter, said: 

"It’s shocking to think that so many families will be starting the new year with a huge weight hanging over them."

The research was carried out by YouGov on behalf of the charity and showed that 2.8 million people were forced to use an unauthorised overdraft to find the funds for their rent or mortgage. With ARLA predicting rental rates will continue to rise in 2013, agents are once more warned that conducting a thorough assessment of a potential tenant's financial position and their capability to meet the payments is essential. As a result of this, landlords are also expected to increasingly look to utilise lettings agents who can make the process of finding a tenant, conducting the checks and managing the property as simple and painless as possible.

We're pleased to note at this point that here at Applegate Lettings we have a full system in place to ensure that all applicants are fully checked prior to applications to rent being accepted by our office. This process includes the following:

• All applicants must meet face to face with a representative of Applegate Lettings or the landlord before they are allowed to submit applications – we believe in building relationships and this starts at the viewing!
•  All applicants must view the property to ensure they are 100% happy – applications will not be accepted unless they have already seen the property.
•  No funds will be taken to hold properties until the application forms have been received. All application forms are inspected before processing and Applegate Lettings only ask for payment if they believe the application is sufficient and likely to pass.
• Full address verification checks are carried out.
• We also do full employment verification including checking references, calling their employers’ head office, confirming payroll, their start date, position and salary.
• We obtain a full previous landlords reference where appropriate.
• Bank validation checks are completed on all tenants.
• We obtain photo ID from all applicants and proof of address if the address validation has not found a current address. This is to comply with money laundering regulations. 

So as you can see, with all the warnings being issued to lettings agents about the importance of correctly screening prospective tenants, we're pleased to say that we're already ahead of the curve and have procedures in place already to prevent the dangers behind these warnings from ever occurring.