The lettings industry is heading into its busiest period of the year. This means it's important to make sure you’re not wasting your agency’s time or money on applicants your referencing provider would advise against.
You can ensure you’re picking applicants who will breeze through the referencing process by pre-qualifying all of your applicants with a few simple questions. You don’t need to ask for any documents or references at this stage - it’s more about making sure you’re aware of the applicant's situation before putting them through referencing. If their answers raise any red flags, you might want to choose a more suitable applicant for the property instead.
Making tenants aware of what will be involved in the referencing process will also improve their experience by avoiding any surprises along the way. Let them know they’ll be contacted if there are any aspects of their application still outstanding, that their references and guarantors will also be contacted, and where they can go to find extra information on the process.
Key questions to ask potential tenants
What ID do they have?
Establish whether potential applicants have the correct Right to Rent documents. Refer them to gov.co.uk if they would like more information on what’s legally required.
How will they be paying rent?
Find out the type of income they have - for example, permanent or temporary employment, pensions, or self-employed - and how much they’re earning. You should already know how much a tenant would need to earn in order to pay rent on the property. If they’re on a low salary, you can let them know they will need a guarantor - who will also require an income check - in order to rent the property.
Do they have an adverse credit history?
Ask applicants if they’re aware of an adverse credit history - if they do, they’re unlikely to pass the credit check. Applicants with adverse credit should always declare it for the best possible outcome.
Are they currently renting?
Find out whether applicants are currently renting, which will mean a reference will be required from their current landlord. If they’re living with friends or family, a referee won’t be necessary.
Oh Goodlord Limited is an Appointed Representative of Goodlord Protect Limited for general insurance products and credit broking. Goodlord Protect Limited is directly authorised by the Financial Conduct Authority, registration number 836727. You can check this information on the Financial Services Register by visiting www.fca.org.uk/register or by telephoning 0800 111 6768 (Freephone) or 0300 500 8082 from the UK. The FCA is the independent watchdog that regulates financial services.