A tenancy reference check is a process that landlords or letting agents carry out to ensure that a potential tenant is likely reliable and able to pay the rent on time. This check is an essential part of the vetting process before a rental agreement is signed.
What’s Included In A Tenancy Reference Check
- Credit Check
This will reveal the tenant’s credit history, including any past bankruptcies, insolvencies, County Court Judgments (CCJs), or a history of missed payments, which could indicate that the tenant may struggle to pay the rent.
- Employment Reference
The landlord or agent will contact the tenant’s current employer to confirm their employment as claimed, their salary, and whether their employment is permanent and stable.
- Previous Landlord Reference
If applicable, the landlord or agent will seek feedback from previous landlords to find out if the tenant paid rent on time, maintained the property well, and if they would rent to them again.
- Affordability Checks
These are to ensure that the tenant earns enough to cover the rent. A common standard is that a tenant’s annual income should be at least 30 times the monthly rent (though this multiplier can vary).
- Right to Rent Check
Landlords or agents must check that a tenant has the legal right to rent property in the UK by studying and making copies of documents like passports or residence permits.
- Personal References
Sometimes, a landlord might ask for personal references to get an idea of the character of the potential tenant.
Importance of Tenant Reference Checks
The value of these checks transcends simply minimising risk; they are vital in cultivating and upholding a positive landlord-renter rapport based on reciprocal trust and esteem. The tenancy reference check is designed to mitigate the risk to the landlord and to ensure that the tenancy starts with a clear understanding of the tenant’s background. However, it is also in place to protect tenants from entering into agreements they cannot afford
By implementing tenancy reference checks, landlords can more accurately identify applicants who are compatible with the property’s requirements and the expectations of the rental agreement, which promotes a peaceful and agreeable dynamic during the tenancy.
Are renters able to challenge the outcome of a reference check?
Yes. Renters can challenge the outcome if they consider the reference check results incorrect or unjust. They are entitled to dispute the conclusions and present accurate information or further explanation.
Is the data collected from a reference check secure?
Yes. The data gathered during reference checks is safeguarded by privacy laws. Those conducting the checks, such as landlords and rental agencies, must manage this information carefully and ensure confidentiality.
Can a prospective tenant be denied a property based on their reference check?
Yes. It is within a landlord’s rights to decline a rental application based on the findings of a reference check. This is particularly true if the information indicates that the potential renter might need help to uphold the rental agreement’s terms.
Find Your Dream Home – Properties To Rent Rochdale
Tenant reference checks are a vital part of the UK’s rental landscape, serving as the backbone of a transparent landlord-tenant relationship. By choosing AJ Properties as your letting agency, you ensure a smooth and straightforward process from viewing to moving in, including tenant reference checks. Our experienced and dedicated team facilitates all. With AJ Properties, we make your journey to finding your perfect home in Rochdale as seamless and enjoyable as possible.
Call us today on 01706 340882, and our local team will gladly guide you.