Step 1: Authentication.
The first thing you should do is to print off a tenants application form. This will allow you to have your applicant tenants details written in hard copy, you can then reference them at your leisure rather than try and do it while they are with you.
Carry out a basic authentication report consisting of a Financial and Adverse Credit analyisis, Identity Authentication score and Lifestyle Reference this will include non-payment of rent and property damage given by the last landlord.
What is the difference in the reports?
The detailed report includes the same data as the basic report but offers up to nine (yes 9!) previous addresses and any adverse financial data recorded at those addresses. www.landlordreferencing.co.uk tenant referencing always recommends that you purchase a detailed report when taking out Rent Guarantee Insurance (RGI) as it offers essential financial information about a tenants credit file that may be called upon in the event of a claim.
Step 2: Detailed.
If all is well with step 1 you can now proceed with step 2.
Carrying out additional checks; At LandlordReferencing.co.uk we do not hold much weight at carrying out a bank reference directly with your applicant tenant’s bank; This path can be expensive and very time consuming and may cost you a good tenant, you will get just as good results looking at 6 months bank statements. (Only ever accept original bank copies and not photo copies.)
Check that the wages your tenant has declared tally up with the receipts on the bank statements and that the rent payable is paid on time and is in line with their payment schedule. You should also look at excess fees for unauthorised overdrafts as this will give you an indication of your applicant tenant’s money management abilities, loans and credit cards which may affect any future rent payments.
Fill out/print an Employer & Landlord / Agent Reference form (free)
Fill out/print an Accountants Reference form (free)
Fill out/print a Bank Statement & Identity Proof LRS form (free)
Step 3: Covering your back.
Now that all the above references are completed you should have a file consisting of:
• Financial report showing your applicant tenant has no CCJ’s / IVA’S and is not bankrupt.
• Identity authentication at the applicant tenant’s declared address.
• Lifestyle search showing no problems with their previous landlord.
• Bank statements that will prove their financial status.
• An employer’s reference confirming your applicant’s employment status and salary.
• A previous landlord reference (as named by the applicant which may differ from lifestyle)
Armed with all the necessary references, you can now apply for your Rent Guarantee, Malicious Damage and Legal Expenses Insurance.
It is important to remember that you only need to show the references to the insurance company in the event of a claim – so if all the references above check out you can get the Rent Guarantee (RGI) to suit you anywhere on the internet.
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