In the present housing market there are many people who are looking for rented accommodation. But a proportion of these people will be applying for properties that are at the top of their budget with little room for any unforeseen expenses. Referencing tenants is therefore advisable as this will give the Landlord a good indication that the tenant/s can afford their property."
It is also a good idea to ask tenants to fund referencing for the following reasons:
1.It is unlikely that a Tenant will pay an administration referencing fee if they know that they are going to fail their reference; so this naturally removes some from the selection process.
2.The rental of a property can be speeded up because tenants in general tend to react more quickly to requests for information when they have invested in the process.
3.An administration fee acts as a holding deposit. It secures the tenant’s interest in the property and deters them from applying for multiple properties.
Application for references should be made as follows:
(1) Report from credit agencies
A credit check generally highlights any previous bad credit history of the applicant. It gives an overview of the applicant's credit history including any unpaid loans or bills.
Tenant: When OP makes an application to the credit check agencies for a tenant; the tenant will be subject to an administration referencing fee of £50
(2) Letter to ask for previous Landlord reference
Previous landlords (or agencies) will draw to attention any misbehaviour or non-payment of rent that may not show up in the tenants credit report.
Tenant: To supply contact details of Previous Landlord
Landlord: Can download (Pdf) letter to previous landlord to request reference
(3) Letter to ask for workplace reference
Written Employer reference will ensures that the employer and salary stated in the tenant’s application are in fact legitimate. Employers are asked to provide a signed written statement confirming that the applicant is gainfully employed, and the salary they earn.
Tenant: To supply name of Manager and work address
Landlord: Downloadable (Pdf) letter to request reference from Workplace
(4) Letter to ask for tenants pay slips
Take a look at the pay slips of the income, or combined income in the case of more than one applicant in assessing the affordability of the rent.
Landlord: Downloadable (Pdf) letter to ask Tenant for pay slips for the last 3 months
(5) Letter to ask for Tenants bank statement
Take a look at the bank statements, or all bank statements in the case of more than one applicant in assessing the affordability of the rent.
Landlord: Downloadable (Pdf) letter to ask Tenant/s for bank statements for the last 3 months