What Do Letting Agents Check When Referencing Tenants?
The tenant reference checks are an incredibly important aspect of any letting agent’s service and at DABORACONWAY Letting Agents we take this very seriously. So when you are looking to rent an apartment or house, it is important to make preparations and look at how you can start to rent a property. Discover here what exact checks Estate Agents need to do to accept new tenants into a rental agreement. This guide will take you through all aspects of what Estate Agents check before accepting new tenants into rental property. This prepares you for tenant referencing.
Why do Letting Agents need to do referencing checks?
Letting Agents rely on reliable tenants and work on behalf of the property owner to rent out the property. In order to get a good understanding of financial reliability referencing checks will take place and be required from a number of sources, may be even a previous landlord or bank.
All Landlords experience budgetary pressures and void properties and the best way to avoid this is to secure reliable tenants through a thorough checking process.
Tenants can often feel under the microscope and surprised by the level of detail in a professional tenant referencing process so it’s only fair that we at DABORACONWAY Estate Agents are upfront about what we require.
We use a healthy mix of valid background checks and years of experience fuelling our “gut instinct”; this makes us the best choice as letting agents in South Woodford and in Winchmore Hill.
What Letting Agent reference checks can I expect?
Initially, as a reputable Letting Agent we want to find out about the tenant. Financial security is important, and proof of a regular income that covers the deposit and rental costs will be necessary. Here are some typical examples, but not limited to:
- Documented employment record. This may include recent payslips, bank statement, contract, or letter.
- Proof of previous renting history and/or reference from a landlord is a good example.
- Proof of fixed abode, with current living arrangements and address.
- We may also ask why they are interested in a particular rental property.
- And will they be away from the property at times.
Most reputable Letting Agents will cover all these checks to some degree. As well as anything else that is specifically a financial reference check for renting.
Financial reference checks for renting
Credit Checks
These are crucial checks as they tell us whether someone is likely to be able to afford their rent. Credit history, CCJs, income levels, employment status, job title, all of these are important indicators.
Affordability Assessment
Some of this falls out of the credit check information, but this is a profile we generate based on stress tests to make sure the rent you set is affordable for the tenant. This may include the need for a guarantor which we can discuss in person in more detail.
Right to Rent Checks
These are so important for any landlord as fines can be imposed if these checks are not carried out. Tenants maybe asked to provide:
- A British passport or National ID Card
- A non-British passport including indefinite leave to remain in the UK
- A certification of naturalisation
- A Home Office certificate or residence permit card which shows residency status
At DABORACONWAY we will check the validity of these documents and take a signed and dated copy of them. We will carry out follow up checks if they are required. Discover our frequently asked questions on renting a property in East London, North London, or Essex areas.
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Posted on: 11 August 2021
