Tenant referencing is a vital tool in your property letting bag. It gives you piece of mind that your tenants are trustworthy, earning enough to pay the rent and do not have a dubious rental history.
If you suspect your tenants might struggle to afford the rent then they should be asked to provide a guarantor, i.e. someone who will pay the rent if the tenants can’t. The guarantor will also be referenced to prove they can afford the rent if required.
A referencing report gives landlords the information they need for technically knowing their tenants are good for their property, but landlords should use their instincts, too. This is why meeting tenants personally is such a crucial part of the lettings process.
Comprehensive referencing includes all the checks mentioned below. This both discourages those that can’t afford the property from applying, and guarantees that the applications of those enquiring are genuine.
Comprehensive tenant referencing should include:
Credit check: looks at a tenant’s credit history.
Affordability check: compares tenants’ salaries with the rent, and judges whether the finances stack up.
Previous landlord written reference: ascertains whether tenants have a good rental history.
Employer written reference: asks their employer to verify that they are a member of staff, and that their disclosed salary is correct.
At Mansons we reference every tenant for every property we let.
We use a company called the Van Mildert Group who email an online referencing application to the prospective tenant once they have paid a their initial holding deposit. Van Mildert will follow up the email request with a text clearly stating what it relates to, and urging them to complete it quickly for us. We like to get the referencing element of the rental process over swiftly so that we can move on with getting the rest of the rental underway, ensuring the tenants and landlord have piece of mind.