Tenant Referencing Credit Check
Tenant credit check UK
If you are a new or a seasoned landlord you will understand that getting to the letting stage on a new property requires lots of hard work in finding a property with good rental potential, making a successful bid, chasing solicitors and finding financial backing (if required). This all takes time and lots of energy. So for some, it may be tempting to jump at the first opportunity to start earning rental income. Any landlord with experience of a tenant or a tenant that pays late or has built up arrears will take every step to avoid a repeat in any future tenancy agreement.
Performing a simple tenant credit check can help protect you from tenants that will struggle to pay or even default on rent payments. It is not a guarantee, but it is a wise and inexpensive preventive measure. Most simple credit check can be applied for online. Two main checks are available, a tenant credit check or a more comprehensive tenant background check that also includes a credit check.
Did you know? After a tenant has moved into a property, it can be difficult to evict them
What is tenant referencing?
A tenant reference check, checks the background of a prospective tenant to determine if they are suitable to rent your property. Checks include the prospective tenant's employment history, which will provide information on their ability to make rental payments on a monthly basis. A check with any dealings they may have had with previous landlords. These 2 key pieces of information will provide a good indication of how suitable the tenant will be as an actual paying tenant.
The profile will allow the landlord to reduce the risk in entering into a contract with a tenant that will prove troublesome, to phrase it kindly.
Is Tenant Referencing a Legal Requirement?
Tenant referencing is not a legal requirement. The only legal requirement for a landlord is to carry out a "right to rent check" on all perspective tenants.
how to check tenant credit and background?
Should You Do a Tenant Reference Check?
Doing a reference check will reduce the risk of having a tenant that could bet be described as a problem tenant. Most tenants are good, but like everything, there are always the exceptions. If you can weed out the higher risk tenants, in particular a tenant or tenants that have a history of not pay rent on time or falling into arrears, it would be wise to filter out these high risk tenants
Tenant reference check how long
Tenant credit checks are normally completed within 48 hours. A full reference check will take longer, but the time can be shortened if you have all the information to hand when applying.
Tenant Credit Checks Include
MultiQuoteTime works in partnership with Opps insurance UK. A full reference check goes a step further than the credit report. As well as a credit report, the reporting agency will take a reference from the tenants’ employer and previous landlord. The employer check will make it clear if the prospective tenant can easily afford the rental price. Reference from previous landlord will give you a good character reference of the person as a paying tenant. . 2 options are available with Opps:
Did you know? It is unlawful to refuse a tenancy based on discrimination such as gender, race or religion
Credit Only Check £9.99
Full Reference £14.99
What is a Right to Rent check?
The right to rent check, checks the identify documents to determine that they are a legal resident of the UK. Similar to an immigration check on entry to the UK. This must be carried out on all tenants, as it is against the law to only check people who you think are not a British citizen. The right to rent check is included in both services offered by Opps.
What happens if the tenant fails the reference?
Whilst not a good sign, a valid reason may exist for the tenant failing the reference test. If the tenant has failed, check out the reason why, it may be a simple mistake of providing an incorrect address, which caused the credit check to fail. If the employer salary check indicated that the tenant will struggle to pay the set rent amount, maybe the tenant has another source of more lucrative income. For some, especially students or immigrants it may not be possible to complete this type of check to a satisfactory level, in such cases a rent guarantor may be a better solution to vetting prospective tenants.
Did you know? It’s illegal to let your property to a tenant who fails a Right to Rent check.