Tenant referencing is an important part of letting out a home. Referencing can help build trust that a tenant will be reliable, take care of the property and pay rent on time.
There are a number of different checks that estate agents complete on the landlord’s behalf. Here’s everything you need to know:
What is tenant referencing?
Tenant referencing allows a landlord or letting agent to check the suitability of a potential tenant. It reduces the risk of renting to tenants who may pose financial, legal, or other issues.
Once the tenant referencing process is complete, the landlord may then decide whether or not they wish to let the property to that particular individual.
What is a right to rent check?
A right to rent check must be conducted on all tenants aged 18 or over to check if they are legally permitted to rent a residential property in the United Kingdom.
It is a criminal offence to rent a property to an individual if they fail their right to rent check. The check includes verifying the tenant’s identity and then scanning their official documents.
Do tenants have to agree to a credit check?
Tenant references often include a credit check. A good credit rating suggests that the individual is reliable when it comes to paying rent.
The tenant does, however, reserve the right to refuse a credit check. If they refuse, you could ask for a guarantor to reduce the risk of them falling behind on rent.
Related: How to attract long-term tenants
Requesting a guarantor
A guarantor is someone who will assume responsibility for the tenant’s obligations, including rent payment, if the tenant is unable to do so.
It is important to carry out financial checks on all guarantors so that you can be sure they will be able to cover any rent that the tenant is unable to afford.
Why use a letting agent?
Allowing a letting agent to take care of the tenant referencing process can take a lot of the stress away from letting.
Their access to extensive databases and information ensures that the checks are thorough and accurate, which massively reduces the risk of letting a property.
Looking to let your property? Contact us today
