Tenant assessment 'should be an everyday activity for landlords'

News Category: Management

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Landlords and letting agents need to step up vetting activity when searching for tenants in the current economic climate, it has been suggested.

John Heron, managing director of buy-to-let specialist Paragon Mortgages, wants owners of rental accommodation to be more prudent amid the impact of the recession and rising unemployment among tenants' finances.

"Carrying out a tenant assessment for prospective tenants should be part of a landlord's everyday business plan," he said.

The expert's comments come after research by Paragon found that a rising number of tenants are bailing out of their rented accommodation after failing to keep up with rent payments.

Mr Heron added: "Tenants leaving a property without paying rent is a more common occurrence than people think."

Keshav Thukaram, managing director of landlord advice firm Smarlandlord.co.uk, recently alluded to this problem and encouraged letting agents to promote rent guarantee insurance to landlords - who could use it to safeguard their financial income in the current economic climate.

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