A UK property expert has advised that tenant referencing processes are absolutely vital when Renters Rights Bill becomes law.
Head of Legal for Landlords, Sim Sekhon has recently claimed that referencing will become even more crucial for agents and landlords once the Renters’ Rights Bill becomes law. With the abolition of Section 21, enhanced tenant rights, and ongoing delays in the court system, thorough vetting of tenants before entering into contracts is now more essential than ever.
Sekhon commented that it is simply too risky to proceed with a tenancy agreement without comprehensive referencing, and said it was important to carefully review all information provided and, when possible, arrange a meeting with the prospective tenant.
He also advised landlords to consider taking out rent and legal costs insurance. Currently, only 16% of landlords have such coverage, but he predicts that this number will double or increase further as landlords become more cautious. He also believes that heightened caution may lead to more landlords instructing agents to manage their properties.
The Renters’ Rights Bill had its second reading in the House of Commons in October, with Labour expressing its intention for the Bill to become law before the summer of 2025.
At Sinclair Taylor, we deliver thorough reporting to residential and commercial landlords, property management companies and letting agents to confirm vital criteria to enable them to move forward with a prospective tenant. Our tenant referencing service offers a comprehensive report on any potential tenants, the guarantors, or referees. Our reports will confirm identity, the presence of any detrimental data if it exists, and previous address checks providing you with added confidence. You can find out more by contacting our team.
