The National Landlords Association (NLA), the trade association for landlords, is warning landlords of the real risk of rental arrears if they fail to carry out appropriate checks on prospective tenants.

A situation where a tenant fails to pay rent could take up to six months to resolve, leaving landlords out of pocket. Paragon Buy-To-Let Index for June showed that the average annual rental income was £11,952. Therefore, a six month rental arrear would be almost £6,000.

With increases in demand for decent and affordable rental accommodation, landlords should seek to minimise this risk by carrying out tenant reference checks.

The NLA says its new Tenant Check service offers landlords peace of mind at a time when more and more people are choosing to live in rented accommodation rather than purchase a property.

It allows landlords to check that a prospective tenant is who they say they are, confirms whether or not they are in employment and serves as a guide as to whether they can afford to pay the rent.

The service is easy to use and the basic package, which includes bankruptcy and County Court Judgement searches, provides quick results. A more detailed profile of a prospective tenant is also available in only three days and offers more comprehensive information, including ID verification checks and written confirmation of employment and income.

NLA members can access NLA Tenant Check for as little as £6. Other landlords have to pay as much as £28.

Commenting on the launch of NLA Tenant Check, David Salusbury, Chairman, NLA, said: “NLA Tenant Check is a simple and affordable tool which allows landlords to reduce the risk of possible future problems with rent arrears and gives them the opportunity to paint a clearer picture of their prospective tenants.

“By simply entering a few details about a new tenant into the system, the landlord will be given a profile of that person’s credit history which will them to make an informed decision about their ability to keep up with rental payments.”