5 tips on avoiding bad tenants

Landlord possession orders to evict bad tenants are on the rise. The number of landlord possession claims in County Courts fell from 2003 to 2008, but has increased since then by 8% to 39,293 in the second quarter of 2013. The increase has been higher in London than in other regions of the country.

The estimated proportion of claims which have progressed to an order, warrant or repossession by county court bailiffs have been increasing slightly since 2009.

Here are 5 tips you can use to help you to avoid bad tenants.

1.  Previous landlord reference. Ask them to provide you with a letter from their current landlord stating how much they currently pay, how long they have been at the property, if there have been any missed or late payments and whether they would rent to them again. Also, do ensure you have a conversation with the landlord before you make your decision.

2. Employment reference. Ask them to provide you with a letter confirming that they are in a permanent position and that no changes are expected in the future. Do ensure they confirm the salary as they should be earning three times the monthly rent to afford your property along with utility bills, council tax and other living expenses.

3. Credit check. You can use a referencing agency to carry out credit checks to ensure they have no outstanding CCJs as this is a red flag. Do ensure that you have the tenant's consent to do this. If they refuse credit checks they may have something to hide.

4. Proof of income. Ask for a copy of their most recent bank statements or payslips for the last three months. Genuine tenants will provide you with this information. Bad tenants normally creates a fuss and makes excuses.

5. Proof of address and photo identification. Ask for their proof of address to verify their current address. This will also give you extra confirmation when you speak with their current landlord. The photo identification must be their passport or driver's license.

I have found that the tenants who refuse to provide details of any of the above aren't usually genuine and may be the ones you may need to request a possession order for further down the line. 

Unfortunately there are many landlords out there ready to accept them with open arms by not doing the necessary checks as listed above. Do not fall into this trap!