Landlords tighten reference and guarantor requirements
Vicki Hextall, of EMPO, says property owners becoming more careful about who they let to now Act in force.
Many landlords have tightened their approach to tenant referencing since the Renters’ Rights Act came into force.
Almost 40% say they are stricter about references and affordability checks, with a third saying they now ask for a guarantor, according to property management platform August.
It’s clear landlords are managing risk now that regaining a property takes longer.”
Vicki Hextall, Area Manager at East Midlands Property Owners (EMPO) (pictured), says: “Landlords aren’t walking away from the sector, they’re becoming more careful about who they let to.
“With almost four in ten tightening their referencing, it’s clear landlords are managing risk now that regaining a property takes longer and is less certain.
“The concern is that tenants with thinner credit histories or irregular incomes find it harder to get a foot in the door.”
Shrink portfolio
Of the 276 landlords quizzed by August, 29% plan to shrink their portfolio or sell in the next two years. A third – 34% – plan to expand and 29% to stay the same.
A third of landlords – 32% – have also had a complaint referred to a deposit scheme, council or ombudsman. A further 28% have had a tenant request to keep a pet, 26% have faced a tenant challenge or refusal of a rent increase, and 23% have had a tenant give notice under the new rules.
Unaware
More than three quarters of landlords were unaware of the new register being rolled out from later this year.
Only 23% of property owners said they knew about a requirement to register on the database under the Act.
Landlords ‘far more selective’ about tenants now Act in force
