Tenant Referencing
One of the ways you can reduce the risk of residential and/or commercial lettings is to ensure the prospective tenants are carefully referenced. This can mean a simple credit check, however selecting a more extensive checking system may prove to be of better value. The type of information that should checked is as follows:
Employment Status & Income Confirmation
Information about the applicant's current employment status, length of service and salary information should be obtained from the employer in writing.
If the applicant has been employed for under three months then a reference should be taken up with the previous employer to ensure that there was no detrimental reason for leaving and that the job change only occurred due to relocation, career progression or position redundancy.
If the applicant is self employed a reference from their accountant should be obtained wherever possible together with copies of the most recent set of accounts. Other forms of evidence can be accepted but this will depend on other factors.
Address Verification/Residency Confirmation
Each applicant's history of residence should also be confirmed and County Court Judgment/Court Decree and Bankruptcy searches should be carried out.
Derogatory Information Searches
- Bankruptcy Data
Enquiries can be carried out through the DTI Insolvency Service
- Previous Landlord/Letting Agent References
Enquiries that are made with the previous/current Landlord or Letting Agent to establish if the current tenancy has been conducted in a satisfactory manner are one of the most useful checks to be carried out. Confirm length of tenancy, rental payment record, condition of property, reason for tenancy ending and whether the correct notice period was given.
- Next of Kin – Address Check
It is also useful to gather details for the tenant’s next of kin. These details can confirmed to be correct using the processes above and in the unlikely event that the tenant absconds this information could be vital in tracing the debtor.Online Referencing Service
Online Tenant Referencing uses a Simple application process provided by RGA Referencing Services.
The service is designed to deliver a rapid response to landlords wanting to reduce the risk of a breach in contract in both residential and commercial lettings.
