The Importance of Tenant Referencing

It goes without saying that it’s every landlord’s dream to have the ideal tenant. That’s not always possible but landlords can do their due diligence to ensure they have tenants who can and will pay their rent and keep your HMO tidy and clean while being good neighbours.

Referencing is necessary and if you’re not using an agency to find you tenants, you’ll want to screen your tenants as best you can. You’ll want to know if the applicant’s details are genuine, if they have adequate income to cover the rent and whether they have any adverse credit history.

A tenant credit check gives a detailed insight into the applicant’s credit profile. Providing a credit score for renting property, it documents poor credit history such as County Court Judgments (CCJ), Bankruptcies and Insolvencies. Previous residency addresses, Electoral Roll data, and demographic CAMEO information should also be included.

Referencing will also include income details. Supported by official documentation, a thorough income report should detail how much money the tenant receives, employment contract dates and an employer reference for the landlord. Essentially, this provides an evaluation of what the tenant can afford.

You’ll also want a landlord reference from their previous rental. A landlord reference letter will detail the applicant’s suitability as a tenant. It should provide confirmation that rent was paid, whether it was paid on time and in full, and whether the property was left in good condition.

Many landlords will also want to know whether their potential tenant is considered honest, reliable and trustworthy. By not checking these details, landlords risk significant loss of income and damage to their property – along with the hassle and stress that comes with trying to sort this out. The landlord reference check should confirm whether the previous landlord was happy with the tenant and would be willing to rent to them again.

It’s important to remember that landlords who rent HMOS privately in England must conduct a right to rent check to make sure they are not entering into an HMO tenancy agreement involving an illegal migrant.

Some landlords may decide to conduct their own tenant check. In this case, they will need to ask applicants to provide them with specific proof of income and any other information they require to help them make an informed decision. The majority of HMO 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 housing reference is being carried out by experienced professionals, who are able to source and verify the correct information.