RESIDENTIALlettings


meeTing a changing markeT The market has clearly changed over the last few years; there is much greater demand for rental property due to the difficulties in mortgage funding and increased need for mobility rather than ‘settling down’ and buying a house. We have rising unemployment, more tenants on state benefits, more applicants from overseas, more sharers. Heidi says, “All these changes, and


dramatic issues like terrorism, have led HomeLet to develop this new range which will help landlords through every stage of the lettings process. “The content and quality of referencing


in the UK varies tremendously, but it has always been regarded – and accepted – as a snapshot of a person’s suitability on that day, now though, we need to be assessing their current stability and their likelihood of that stability being maintained throughout the tenancy.”


TenanTs from overseas With improved communication systems, HomeLet has already removed one major difficulty for agents; the new tenant arriving from overseas. These tenants may well have an excellent job already lined up but they won’t have a UK credit history, an established bank account or a past landlord or employer, but they can now be properly referenced and, if there is insufficient information to be confident about them, an overseas guarantor may also be referenced. Another worrying factor in an agent’s


work is the discovery that you have housed a terrorist, it may sound a bit dramatic, but it is reality; terrorists often rent property so HomeLet checks the applicant’s name against the Government’s terrorist list. There is also the Financial Sanctions


check, which checks that the potential tenant isn’t registered to any of the Government’s Asset Freezing lists, because this could mean they’re unable to pay their rent in the future. Again, this doesn’t apply to the vast majority of tenant applicants but it is a possibility. There is no doubt that the more


information that is gathered, the clearer the picture of the applicant will be, and it is the agent’s responsibility (and in their interest as well) to do their very best to protect their landlord.


Times change and what


used to work and was generally accepted as the norm, doesn’t necessarily meet today’s demands.’


Three opTions So referencing is becoming more detailed and, in some ways, more stringent. HomeLet’s new product range offers three options, Insight is the simplest check, Enhance builds on the basic picture with additional checks and by talking to the applicant’s current landlord or agent and their employer, and the top level product, Optimum, goes as far as any reference can, with the added benefit of a guarantee eviction if the tenant who breaks the terms of their tenancy agreement and fails to pay the rent. The depth of each reference type is


greater than ever before, and while the personal interview by the agent and the resulting ‘gut feeling’ will always be the best place to start, these enhanced enquiries offer the safest way to proceed. But will the hurdles be so high that many


tenants simply don’t ‘pass’ and will not be able to get their tenancy? “Absolutely not,” says Heidi. “It is not our


job to prevent tenants moving in, that doesn’t help the tenant, the landlord or the agent and ultimately it doesn’t help us. We aim to gather the best information possible to be able to guide the landlord, uncovering potential problems or history that may not have been disclosed, but the goal is to help the tenancy progress even if sometimes, a guarantor is required.”


compeTiTive pricing If the checks are so wide ranging, is HomeLet having to charge more and more for the landlord to feel secure? Well no, says Heidi, “We have the benefit of running thousands of checks every week and this keeps our costs down. “Our prices are always highly


competitive and even with the Optimum product the cost is surprisingly low; HomeLet Premier Agents will only pay £4 more than they are paying for our current top level reference, which is a small price to give those hard won landlord clients the best possible security. “Optimum has the added extra benefit of


guaranteed eviction if the tenant breaches their agreement.” Once the reference is completed, the


Heidi Abbott 20 years ago – and today!


landlord makes the decision to accept or reject an applicant based on the information received, but what happens if, once installed, the tenant loses their job and becomes unable to keep up rental payments? “Currently, only 30 per cent of landlords take out rental guarantees.


PROPERTYdrum FEBRUARY 2011 41


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