NOTE: It is the law England that all landlords and letting agents must perform Right to Rent checks on all occupiers aged 18 or over.
Why reference tenants?
Landlords and letting agents need to have trust in any tenant that they will pay their rent on time, treat the property with respect and not be a nuisance to neighbours or others.
Satisfactory referencing confirms the tenant’s past behaviour in other rented properties and whether they can afford to pay the rent, so there is confidence that the right tenant has been picked.
Landlords and letting agents must ask the prospective tenant’s permission to carry out a reference. Obviously, if this is refused the landlord or letting agent may wish to decline the request to rent a property.
What Referencing can be used?
There are several forms of referencing that exist to provide a better understanding of a prospective tenant and whether they are suitable to rent the property.
This involves getting in touch with the tenant’s previous landlord to find out how they behaved as a tenant. They can tell you if the tenant paid rent on time, if they treated the property with respect and any other information that might influence the decision.
This reference will confirm the tenant’s credit history. Any County Court Judgements (CCJs), bankruptcy and insolvency will be brought up, which may lead to an unacceptable credit score. These checks should bring up past addresses and details on the electoral roll (if any).
As a guide, affordability will need to be shown of 30 times the monthly rental figure, as an annual household income. Checks exist to confirm the tenant’s income – this could include where applicable, employer reference; statement of benefits received; confirmation of self employed income; and pension statements. For Independent means as a guide, three times the rental due for the contract period would need to be shown via Savings Account Statements.
Right to Rent
Right to Rent referencing is done Checks are carried out to ensure all occupants over 18
year of age are is legally allowed to rent a residential property in England. Find out more details on the Government website about Right to Rent.
– Excerpt taken from Propertymark website.