The importance of background and credit checks for Landlords
Before you rent a property, you must ask the tenants for information and documentation proving that they will be reliable, responsible tenants.
Confirming their legal right to rent
When a tenant begins or renews a tenancy, you - or the letting agency acting on your behalf - must request to see their passport or relevant immigration documents. This requirement applies not only to the named tenant but also to any other adults who will be living in the property. The purpose of this process, known as a ‘right to rent check’, is to confirm that each adult occupant has the legal right to live and rent in the UK.
If the tenant is not a British citizen, you will need to obtain their government-issued share code instead of physical documents. This code can be used to verify their immigration status online and should be obtained before the tenancy agreement is finalised.
Tenant referencing checks
To ensure that the prospective tenants can afford the property and will meet payment deadlines, you should request references from them.
Typically, the prospective tenant will provide a reference from:
- Their current and previous landlords.
- Their employer, to prove that they have a job and that employment will continue.
If the prospective tenant is unable to provide a reference, you can ask them why this is the case. There are other forms of references which can provide adequate proof of the tenant’s ability to pay rent and their reliability. For example, if they have paid previous rent on time, you can ask to be shown their leasing agreement, rent book, or bank statements to confirm it.
Checks on credit
Carrying out tenant credit checks is an effective way to assess whether a prospective tenant is likely to meet their rent payments in full and on time. By reviewing a tenant’s financial history through a credit report, you can identify patterns such as late or missed payments, outstanding debts or county court judgements. This insight helps you form a clearer view of their reliability before committing to a tenancy agreement.
When conducting these checks, you must first obtain the tenant’s permission and you will need details like their full address history. The process typically involves using one of the three main credit reference agencies to produce a credit report that reflects the tenant’s financial history. If the tenant fails a credit check, it is advisable to give them an opportunity to explain the reasons and confirm whether they can realistically afford the rent.
In some cases, you may still decide to proceed with the tenancy despite a poor credit history, but you should consider additional safeguards. These can include requesting a larger deposit, more rent in advance or a guarantor agreement to protect your position. As the landlord, you are responsible for covering the tenant credit check cost, and this should be factored into your pre-tenancy processes.
How AST Assistance can help with tenant background and credit checks
If you are seeking a tenant but have limited time to carry out the necessary checks, including tenant credit checks, it can be beneficial to work with professionals in property law and management such as AST Assistance. We can manage the legal requirements on your behalf and advise you on whether a prospective tenant is likely to be reliable and meet their obligations.
Assessing a tenant’s suitability to rent can be complex and often takes longer than anticipated. Understanding which checks to perform and how to interpret the results is essential for protecting your property and rental income. The team at AST Assistance has extensive experience in landlord and tenant matters and can guide you through each stage, providing the clarity needed to make informed decisions.
Contact us today by calling us on 01706 619 954, emailing info@ast-assistance.com, or filling out our contact form here and we will get back at a convenient time for you.
