by Craeg Williams
Choosing the right tenant is not always the easiest process. Landlords are often in the position of choosing from applicants who are not perfect but will hopefully prove to be adequate.
Once you hace chosen the best applicant on merit, it is time for the background check.
Remember the references they provide may be the only way to track the tenant down if they do end up doing a runner. It is a common misconception that getting personal references is a waste of time. This cannot be further from the truth.
A current landlord and work reference can confirm the applicant’s details now, but will not be able to help you track them down in the future. Family members are one of the best sources for obtaining new phone numbers and addresses.
Once the background check has been completed the next step in protecting your investment is the tenancy agreement. The agreement should have a number of provisions that protect your interests rather than those of the tenant.
You should also be aware that not all tenancy agreements have the appropriate protective clauses. The absence of these clauses may lead to future issues. Your tenancy agreement should contain an importation clause which states that the completed tenancy application form becomes part of the tenancy agreement, as well as a range of other protective clauses.
The most important clause in terms of debt collection is a ‘cost collection clause’. This states that if there is a collection for outstanding losses then the fees incurred in the collection are to be paid by the tenant/debtor.
Another important provision to have your tenancy agreement is a ‘duly authorised agent section’. If this section is properly completed by the tenant it permits tenancy services to serve...
