21 Nov

Passports could reduce tenants' costs

Passports could reduce tenants' costs

The introduction of a new passport scheme could help reduce the burden of upfront fees.

At the moment, many tenants are required to pay a deposit, as well as a month’s rent in advance and a number of other associated costs, including paying for referencing.

However, a “referencing passport” could help tenants have transferable refencing checks, so they don’t need to pay out again if a property renting fails through, reports the Daily Mail.

Rob Ellice, of easyproperty, who is in support of the new scheme, said: “The tenant would be able to buy such a referencing product from a letting agent or even your local convenience store. It would be valid in every lettings agency across the nation.”

The passport could be valid up to three months, assuming there are no substantial changes to a tenant’s circumstances.

In addition, the scheme could be backed by insurance companies who could provide landlords with a guarantee if they are given incorrect information via the passport initiative.

The Association of Residential Letting Agents has also welcomed further discussion of the passport idea.

David Cox, managing director of the Association of Residential Letting Agents, said: “In principle, referencing passports sounds like a good idea, but its success will depend on how it works. 

“Anything can change in three months, including professional and personal circumstances, so having a reference which is three months old could yield a very different result to a more recent one. 

“For example, if a tenant has had an increase in their salary and are looking to rent a more expensive property as a result, a three-month old reference might not reflect their current circumstances, and may mean they do not meet requirements for the more expensive property, when in actual fact, they do.”ADNFCR-1222-ID-801828634-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.