A Straight Forward and Simple Guide to Referencing
What is the Purpose of Referencing?
At the start of any tenancy it is important to look into the background of all of our tenants. The complexity of this varies on a case to case basis and can vary in time to complete. The benefits of a full and thorough referencing procedure can confirm a tenants history in other properties as well as a glimpse of any substantial financial concerns that there may be.
What will be checked when a tenant is referenced?
There are three main checks completed by ourselves on all tenants, these are as follows:-
Credit Check – Carried out by us, using Experian, all tenants are checked for any outstanding or unsettled County Court Judgements, or previous Bankruptcy orders lodged against an individual
Previous Housing Reference – Carried out by our expert referencing team, we seek to find out from the tenants current landlords firstly to check if there are any outstanding arrears and secondly if any damage has been reported at that property
Employment Reference – Carried out by our expert referencing team, we approach the named employer which the applicant supplies in order to confirm a permanent job in which the applicant/s earns 2.5 x the annual rental amount.
What Information Does a Tenant Need To Supply?
All we require to reference a prospective tenant is:-
A completed application form, which can be obtained from our office
Three consecutive month’s bank statements
Two proofs of address from their current residence
One piece of photographic ID
What are the Benefits of Referencing?
A full and thorough referencing procedure has many benefits, not least of all a clear and concise account of the applicant’s current situation, but also any previous concerns which any applicant may not choose to disclose to us.
For a landlord it acts as a safeguard, and a successfully referenced tenant can offer the landlord specific insurances that may not be available otherwise. It also gives peace of mind that their tenant can fulfil their obligations to pay rent and maintain the property to a high standard.
For a tenant it can offer a simple and consistent approach to the letting of our properties.
What If a Tenant Does Not Pass Referencing?
Unfortunately from time to time, we meet clients who cannot meet all of our referencing needs. This does not mean that we cannot help though. We do have landlords with different approaches that can offer this type of tenant accommodation and a fixed term contract.
To find out more about our referencing guidelines then please do not hesitate to contact us to find out what we can do for you as a landlord, or tenant.
