I am proud of our referencing procedures and I made my tenant jump through the very same hoops to prove his income was sufficient, he had no credit problems in the past and asked his previous landlord to tell me about how he conducted himself as a tenant including if he paid the rent on time. I have been delighted with my tenant and am glad I did all the checks on him as it gave me piece of mind.
That being said, I took out a rent guarantee policy straight away. On a monthly rent of £700pcm it costs me a little over £15 a month and while, like most insurances, I hope I never need it, I am thankful to have it. Imagine a scenario where my good tenant turns into a bad one.
He could get made redundant and find himself unable to pay the rent. He could suffer some sort of personal crisis and not be able to work. Imagine if he lost a family member and was taken over by grief or injured in a accident himself, preventing him from working. I've even seen people start a new personal relationship and have a complete change in character.
Suddenly my good tenant stops paying the rent, stops responding to my calls and becomes a tenant's from hell. What happens then? I still have a mortgage to pay and don't have any rent coming in. The average cost in the UK of repossession proceedings is now in excess of £1200, that on top of my mortgage payments would make things very difficult!