The Financial Clearing Bureau is a local credit risk and appraisals firm. The company was founded in 1988 and since that time has been serving the financial services sector’s credit clearing and referencing needs in Zimbabwe. Membership to FCB is open to all credit providers as well as companies, both private and public, that need customers, business partners, agents or staff vetted. In line with its business model, the Financial Clearing Bureau (FCB) has announced that is now offering tenant vetting services through a product called “Private Real Estate Tenant Vetting”.
As many property owners are aware, renting out your space to a business or an individual always comes with the risk of the tenant not paying their rentals or property mismanagement. Most landlords won’t have any prior knowledge of their tenants and won’t know if they will keep up with their payments or how they will treat the space they have been given.
FCB recognised this problem and wants to provide property owners with the information they need to assess any prospective tenants.
FCB’s Private Tenant Real Estate Tenant Vetting (PRET)
To apply for PRET, property owners will need to fill out two application forms. The first form registers the property they have listed and the second will be for the prospective tenant. There is no charge for the application and FCB will conduct a search on its database and will print a report for the applicant.
FCB will, however, need consent from the property owner to capture the property ownership information as well as the consent of the tenant to release the information to the landlord.
A common issue that FCB has identified is that property owners don’t request KYC documents from their tenants. This makes it very difficult for landlords to know any background on the prospective tenant as well as seek recovery using legal means if there has been rent default or any other problems.
This is why FCB insists that any application should include the following:
- Copies of I.Ds (of tenant and property owner)
- Signed lease agreement
- Proof of employment
- Next of kin details
FCB will then conduct various background checks that include any pending legal issues, financial obligations and or if the tenant has had any other issues with properties they rented previously.
In the event of a rent default, for example, the property owner can then list the tenant on FCB’s database as a bad debt and then carry out legal action. The listing on will be categorized as a credit event and will be communicated to all credit providers.
For more information about the Financial Clearing Bureau’s Private Real-Estate Tenant Vetting services you can reach them through the channles below:
- +263 24 2794 367 – 9