Rental reference checking
Checking rental references on a tenant expressing interest in taking one of your rental properties is essential if you are to run a professional letting agency.
There is two options in rental reference checking available.
Outsourcing via background checking companies
Outsource your rental reference checking through background checking companies such as Experian.
This will typically cost you somewhere around £25 per background check
Provide the reference checking yourself
If you are not outsourcing your rental reference checking you can follow my rental reference guide. I would recommend you have your tenants use a reference sharing platform from Rentview.co.uk. Here tenants can upload and share the below rental references and documents with you securely
Previous landlord or letting agent reference
Firstly make sure you get legitimate references. If the previous landlord reference is from an agency don’t just assume that the document is an original call up the agency and confirm it. Always check for a land line. If the previous rental reference is from a private landlord and the only contact number is a mobile ask the referee is it possible to call them on a land line Any tenant can give you a rental reference written from a friend with a mobile phone number on it but they won’t be as quick to give a land line if its fake. Most landlords will gladly back up the reference with a land line after all they are in the same position as you.
It can happen. Why not search the mobile number through a search engine, more than likely if it’s a mobile number from a landlord on the reference it will be the same mobile number the landlord uses to market the rental property. This way you can confirm at least that he is a landlord. No search returns -This can happen and it is by no means a fool proof way of confirming a reference is genuine.
What happens if the interested tenants have not rented before? This is going to happen so make sure you a policy in place to reference check these tenants.
Many letting agents look for a rental guarantor as additional security.
Utility Bills as proof of previous address
Many letting agents will ask for a copy of a previous utility bill to confirm your previous address.
Letting agents will ask for a bank statement as part of your referencing process to confirm that the tenant has the ability to pay the rent and to see previous payment history.
A general rule of thumb in a tenant’s affordability to pay is that the rent should not exceed 35% - 40% of the monthly income.
Ensure you get valid photographic ID to confirm the identity of your potential tenants.
You may also be interested in a Questions to ask tenants