What is Tenant Referencing?
Tenant referencing is simply a way you find out about a prospective tenant to make a valuable decision on whether to rent your property to that particular tenant. You need to check out whether he is trustable or not, pay rent on time, treat the property with respect and not be a hassle to neighbours or others.
Tenant referencing is an important aspect for any property manager or letting agent and at HOUSEMANAGE we take it very seriously.
Most of the property owners experience budget pressure and void properties. And, the best way to avoid these is to source reliable tenants with the help of a property manager or property management company London.
Tenants feel safe under the property manager. Letting the agent or property manager do the proper referencing process in detail, so the stress of getting cheated with the tenants is reduced.
The property management company uses a healthy mix of valid background checks and their years of experience fuelling gut instinct usually makes the best choices in terms of tenant referencing.
What do Lettings Agents or Property Managers Check when Referencing?
Initially, property managers find out everything about the tenant such as renting history, their employment record, and why they are interested in this particular property. Will they stay longer on the property? Why did they leave the previous rental property and how long did they rent for the previous rental property? All of these are basic as well as important questions to know before the formal screening process.
Credit Checks
Credit checks are done by letting agents know about the basic but crucial matters regarding tenants such as whether the particular tenant is able to afford their rent or not. With the help of credit history, employment status, CCJs, income levels, job title, property manager or letting agents decide their eligibility.
Affordability Assessment
It falls out of the credit check information. On the basis of affordability assessment property managers or letting agents generate a profile and make sure that the rent they fixed for the particular property is affordable for the tenant or not. In some cases, the guarantor is required to ensure their future affordability.
Right to Rent Checks
It is important for any landlord or property owner as fines can be imposed if these checks are not carried out. And, it should be necessary for the tenants to provide
- A passport or National ID Card
- A non-British passport (That includes indefinite leave to remain in the UK)
- A naturalization certificate
- Residency status:- A Home Office certificate or residence permit card
At HOUSEMANAGE we will check the validity of these documents and take a signed and dated copy from the tenant while referencing. Our property manager will carry out follow-up checks if required.
What happens if the tenant doesn’t pass the checks?
If the tenant doesn’t pass the checks, then probably he/she won’t be offered a tenancy.
Immigration checks
If the tenant is not able to pass the checks, the property owner or agent can’t legally rent the property to you.
The property owner can keep your holding deposit if you’ve paid one providing they write to you and explain why within 7 days.
Financial checks
If a tenant fails in a financial check, then he/ she could be:
- asked if they’d consider a guarantor
- can pay more rent in advance
If the tenant paid a holding deposit, then the amount should be returned as long as the tenant told the truth about their financial situation. For more information related to property management with guaranteed rent scheme services in London, you can ping us freely.
