NLA – Specialist Referencing
According to an article from the NLA; Vetting and referencing tenants is an essential part of the process of selecting a good tenant so it is important for landlords to keep up with best practise in this area, as well as with the law.
NLA Director of Operations Richard Price has outlined the main areas a professional landlord should be aware of when carrying out referencing in the Jan/Feb addition of the NLA’s UK Landlord Magazine.
What should you expect from a specialist referencing agency?
Throughout the referencing process it is important to keep careful records; this will help to avoid disputes and may be useful to help trace a tenant if they abandon the property and/or owe money at the end of a tenancy.
Most referencing companies will offer the option of a credit report or a full credit check. A full tenant check normally includes a credit report, landlord and employer references, confirmation of previous property ownership income confirmation and an assessment of the prospective tenant’s ability to pay the rent.
A specialist referencing service will only confirm facts. If a check ‘fails’ it does not necessarily mean that the tenant will be a bad tenant; but would normally be seen as an increased risk. Even if an agent or a specialist referencing company is used, the ultimate decision lies with the landlord, so it is important to have sight of all the referencing information. Good agents will make clear to the tenant that information will be provided to the landlord. However at the end of the day an agent is acting on your (the principals) behalf, so don’t accept any form of avoidance by the agent to refuse to provide relevant information incorrectly based on data protection rules. Landlords should remember that it is against the law to discriminate on the grounds of race, age or disability.
What is included in Tenant Referencing UK’s specialist referencing?
Tenants Affordability; We calculate your prospective tenants affordability by using our Rent vs Wages Calculator which works at an industry level 30x multiplier, in depth look at Bank Statements looking for any discrepancy’s and to confirm rent payments and utility bills.
Equifax Detailed Financial Report; which shows up to 9 linked addresses, aliases, electoral role data, CCJ’s & NOC’s, and Credit Report Score.
Tenant History Report; Landlord and Letting Agents Direct Data Share of uploaded tenants Rent Defaults & Property Damage.
Employers/Accountants Reference; Confirmation of salary, contact/hours information, whether they are likely to leave the company in the near future.
Previous Landlords Reference; as supplied by the applicant tenant. Previous rental amount, if it was paid on time, any rent arrears or property damage, would they let to this tenant again?
Jumio Identification Document Check; Cover yourself for the Right to Rent legislation, Immigration Document Verification checks from over 120 countries worldwide.
Transparent Referencing; Tenant Referencing UK is acting on your (the landlords) behalf as the data gatherer. This means that everything we obtain during a reference is stored in your Serviced Reference Archive so that you see all the information that we see; as the ultimate decision if you were to take a tenant lies with you the landlord.
Do you have a vacant property you need to advertise?
Or found prospective tenants that you need to reference?
Maybe tenants are already in place but you would like to cover yourself with RGI?
If any of these apply to you or you would like to find out more then give us a call on 0800 9994 994 or request a call back here.