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Landlords are failing to adequately check the background of prospective tenants – a crucial mistake if you are looking for good, long-term tenants that help you make a decent profit out of your investment.

According to Paragon Mortgages, nearly a third of landlords never carry out a tenant assessment on a prospective tenant, with a further 22% stating that they only check new tenants occasionally.

This is despite the fact that over a quarter of landlords have experienced a tenant leaving a property without paying the rent, while 14% have been forced to evict tenants for failing to pay the rent.

Your property will only work if you are sure that you will be getting regular payments, on time and in full. An untrustworthy tenant can spell disaster if they just walk out, miss a payment or damage your property. During this difficult time, your tenant must be solid as a rock, allowing you to concentrate on more pressing matters.

John Heron, Paragon Mortgages’ managing director, says: "Tenants leaving a property without paying rent is a more common occurrence than people think and a large number of landlords will experience this problem at some point. We could see a spike in the number of tenants bailing out from a property without paying rent in the current economic environment as unemployment rises and increasing numbers of households struggle with their finances.

"Landlords wouldn’t buy a property without making the necessary checks, so why would they let somebody rent a property without carrying out a comprehensive assessment first? Carrying out a tenant assessment for prospective tenants should be part of a landlord’s everyday business plan."

SOURCE: Paragon, 25/02/09

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