Landlords offered financial guarantee on tenant suitability

Warren Lewis
3rd November 2017
new house

Tenant referencing and insurance agency, Landlord Secure, has announced an added component to its reference service that will provide private landlords with a unique guarantee to cover the cost of the eviction process should a recommended tenant fall through.

The Landlord Secure eviction guarantee aims to provide private landlords with even greater reassurance that their next tenant will be financially suitable. If - having passed Landlord Secure’s in-depth checks - a tenant does subsequently need to be evicted, the company’s eviction team will manage the process and cover the associated costs up to the value of £10,000.
It is estimated that, due to wide-ranging factors such as serving notice costs, court proceedings, debt collection and solicitor fees, the average cost of legally evicting a tenant is almost £2,000. This can quickly increase should the matter become more complex and drawn-out or if the process is not followed correctly, with cases taking around six months to complete. Private landlords would ordinarily have to foot this bill.
Whilst paid-for insurance policies are already widely available to this effect, the eviction guarantee will now automatically form part of Landlord Secure’s comprehensive reference report. This report uses a variety of sources such as the electoral roll and active financial accounts to provide a detailed analysis of an applicant's credit background.

Steve Burrows, managing director of Landlord Secure, said: “In our experience, private landlords expect to obtain in-depth credit details from prospective tenants as a matter of course. Unfortunately, many checks are far from comprehensive and can leave substantial gaps in tenants’ financial histories – which can lead to problems later down the line.
We believe that our service offers the most extensive referencing and credit checks for finding a suitable tenant – so much so that we’re willing to put our money where our mouth is with this new addition to our package.”

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