As a landlord in the UK, finding suitable tenants for your rental properties is crucial to your business’s success. Choosing renters who are dependable, responsible, and trustworthy is crucial since renting out a house requires a sizable commitment of both time and money. Tenant referencing is one of the best techniques to reduce the risk of tenant default and anti-social behaviour.
While conducting tenant referencing may seem like an extra hassle, it’s an essential step in the tenant screening process. Rent arrears, property damage, and legal troubles are just a few of the serious repercussions that can arise from renting to an undesirable renter. So, before renting out a house, it’s vital to take the appropriate precautions to check tenants. Get in touch with the Leading independent estate agents in Ealing who are equipped with the best real estate market knowledge to help you with all your property needs.
Here’s everything there is to know about tenant referencing in the UK. You’ll have a strong idea of how to efficiently evaluate potential renters and make judgements regarding renting out your homes by the end.
Tenant Referencing: What Is It?
The process of determining a renter’s suitability for renting a property is known as tenant referencing. It entails learning about the tenant’s credit history, work situation, and prior renting history, among other things. Landlords can spot possible warning signs that a renter is unreliable or unfit to rent a home by completing tenant references.
What Steps Are Included In The Tenant Reference Process?
Despite its frightening initial appearance, tenant referencing is a simple process. It is often possible to complete the full process online using a form or application, which makes it simple to gather and submit all the information your landlord requires. Despite this, each landlord and agency will have a separate reference request process. However, the information you will need to supply is essentially the same everywhere.
You can be asked for a variety of references to show that you are qualified to rent the home of your choice. The scrutiny that your landlord will normally need to conduct will depend on the type of renter you are, such as whether you’re a student, full-time worker, or self-employed.
What Do They Look For?
- Rental Check-Up:
According to the law, your landlord is required to confirm that you are eligible to rent a property in the UK. This entails confirming that you are either a citizen of the UK or that you have been granted the legal right to reside there. Giving evidence of identification (such as a passport), prior address, and other papers demonstrating your legal right to rent in the UK are required for this check.
- Statement Of Income Or Employment:
If you work a full-time job, your landlord will need to speak with your employer to verify your income in order to ensure that you can afford and pay rent on time.
Landlords often demand that your income be 30 times higher than the monthly rent; for instance, if your rent is £600 per month, you’ll have to make at least £18,000. This makes it more certain that you’ll be able to cover the entire monthly rent payment. The process for doing this check is simple, and it won’t take up much of your employer’s time.
- Credit Inquiries:
This form of tenant reference is known as a credit check that evaluates a renter’s financial background. It discloses any unpaid debts, late payments, or bankruptcies that the renter could have. The reliability of a renter to pay rent and their general financial soundness must be determined through credit checks.
- Reference From A Prior Landlord:
In the event that you have leased a home in the past, the landlord will get in touch with you to ask about your behaviour as a renter. This will encompass your ability to pay rent on time, how well you took care of the property, and any other details that can affect your new landlord’s choice. Don’t panic if you’ve never leased before, all your landlord may ask for is evidence of your salary or a guarantor.
What Does A Rent Guarantor Do?
Although it’s not required by law, you may need a guarantor in some situations, such as if you’re a student or your landlord requests one. In the event that you are unable to complete your duties as a tenant, such as paying rent, for whatever reason, the chosen guarantor will take on responsibility.
Due to this, it’s possible that your guarantor’s affordability and credit may also need to be checked. They will usually receive a copy of your lease and be required to sign some documentation indicating their consent to serve as your guarantor.
If I Fail The Tenant Reference Check, What Happens?
A renter might fail a step in the reference check for a variety of reasons, although some are less serious than others. If a guarantor is acceptable, for instance, it shouldn’t be a problem for you to rent a house. The likelihood that you will be turned down for a rental is higher if you have a terrible credit history and a negative landlord reference.
The best approach to guarantee you can rent your preferred home is to successfully pass each reference check. In the end, your landlord will decide whether or not you are a suitable renter.