What is a tenant reference?
A tenant reference is an evaluation of a potential tenant’s suitability to rent a property, based on their current financial and residential situation. This helps you judge whether the applicant is suitable to live at the property and has the means to afford the rent. References provide the landlord with a recommendation about whether to proceed with the proposed tenancy or not. Tenant references are important because they allow you to make an informed decision, based on the available facts.
What does a reference consist of?
This will depend on where you are getting the reference from and what sort of reference you order. However, most references will consist of the following:
Credit Check: This provides a detailed insight into a Tenant’s credit profile. TenancyPod Credit Check takes only seconds to provide a clear result - accepted or declined. Poor credit history, such as County Court Judgments, Bankruptcies and Insolvencies will be documented. We also obtain previous residency addresses, Electoral Roll data, and demographic CAMEO information.
Income Reference: This provides an evaluation of what the tenant can afford in comparison with the rent of the property they are applying for. TenancyPod income report is supported by official documentation and details how much money they receive, employment contract dates, and includes a personal character reference from the employer.
Landlord Reference: This provides information from an applicant’s current landlord or letting agent about their suitability as a tenant. TenancyPod previous tenancy report provides confirmation of the rent they paid, whether it was paid on time in full and the property left in good condition, and whether the landlord was happy with the tenant and would be willing to rent to them again.
Why should I reference my tenants?
Referencing gives you a clear recommendation – accept or decline. While you may still want to choose your own tenants, the factual information provided in a reference can help you make an informed decision. Ultimately, doing a reference yourself – or hiring a professional referencing company to do this on your behalf – gives you peace of mind that you have the right person for your property, and significantly reduces the chance of your rent not being paid. With rent from your property providing a significant income, would you want to take the risk of not referencing your applicants?
How can I reference my applicants?
As a landlord letting out your own property, you have two main options. Some landlords may decide to conduct their own reference, and ask their applicants to provide them with specific proof of income. A majority of landlords will instruct a reputable and trusted direct-to-landlord referencing provider to do the work on their behalf: this saves time and hassle, and gives added peace of mind that the referencing is being carried out by experienced professionals, who are able to source and verify the correct information.
How to stay compliant with complex legislation
It’s important to remember that landlords who let private property in England could be liable for a civil penalty if they enter into a tenancy agreement involving an illegal migrant. To help support our landlords, TenancyPod has a Right to Rent Check Facility that provides you with an easy way to ensure you are conducting Right to Rent Checks in line with the Immigration Act 2016, and to integrate these checks seamlessly into the referencing process.
TenancyPod provides landlords with comprehensive tenant referencing. To find out how we can help you, or for more information about referencing, call us today on 0333 332 7938
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