At LetBritain we know low risk letting is every landlord’s priority. However without completing effective tenant screening it’s difficult to know for certain if your tenant will prove reliable.
Before preceding with a tenant you may ask yourself are the applicant’s details genuine?
Will they have enough income to cover the rent, each and every month?
It is hard to know whether the perspective tenant is honest, reliable and trustworthy.
Without the referencing procedure you could risk significant loss of income, potentially having your property damaged leading or even rent arrears.
Why is tenant referencing done?
A tenant reference is used to evaluate a prospective tenant’s suitability to rent a property, and this is calculated by analysing the tenant’s current financial and residential situation.
A tenant reference check provides the landlord with a clear and precise report of the applicant’s ability to pay the rent, as well as their recent renting history.This allows the landlord to have peace of mind whilst making the decision whether to proceed with this tenant.
What does a tenant reference entail?
Most referencing reports will consist of;
A tenant credit check – a rental credit check gives a detailed insight into the applicant’s credit profile. Providing a credit score for renting property, it documents poor credit history such as County Court Judgments (CCJ), Bankruptcies and Insolvencies.
An income reference (supported by official documentation) – This includes a thorough income report detailing how much money the tenant receives, employment contract dates and an employer reference for the landlord. Essentially, this provides an evaluation of what the tenant can afford.
A landlord reference – a landlord reference letter will detail the applicant’s suitability as a tenant. It should provide confirmation that rent was paid, whether it was paid on time and in full, and whether the property was left in good condition.
The landlord reference check will confirm whether the previous landlord had any problems with the tenant or whether he/she was happy with the tenant and would be willing to rent to them again.