Finding your perfect tenant can be a time consuming process, and it is vital to ensure you thoroughly vet applicants before agreeing a contract. Here's our guide getting started.
Using a referencing agency
The first decision you will need to make is whether to employ a referencing agency or undertake the task yourself. The majority of letting agents will conduct checks using private companies, and some are more thorough than others.
If you do use an agency, ask the following questions: does the company conduct employment checks, fraud checks, identity checks and credit checks and does it ask for thorough landlord references? If you are satisfied with the responses, you should then consider whether the overall package represents value for money. If you instead decide to go it alone there are plenty of resources available, including a range of online templates.
Employment and landlord references
You should request an employment reference and a landlord reference. The former exists to confirm the income and employment contract of your applicant. This reference helps you identify mistruths - if the employer informs you of a different salary or contract term, alarms bells will start to ring. This reference is quite easy to obtain with a phone call to a designated manager or HR department.
Landlord references can be more troublesome. In an ideal world you require references from two recent landlords, allowing you to compare them for any inconsistencies. However, some applicants will have only lived with their parents, so this may not be possible.
Credit checks
An applicant must give written permission before you can conduct a credit check. A credit check will usually be undertaken by one of the three main UK credit agencies; Equifax, Experian or Callcredit. Credit reports consist of several elements including credit history, which gives information on any borrowing, defaults or arrears and the electoral roll, which lists address history and any CCJs.
Identification
Identification checks can take several forms. You should first request photographic identification (either a copy of a driving licence or passport), which will verify the name, date of birth and appearance of the applicant.
Additional verification can be undertaken by requesting a council tax or utility bill, which will confirm the address of the applicant. Some landlords also ask for copies of bank statements, but these are not always necessary.
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