Tenant referencing is a formal background check to assess a tenant’s:
- Current employment
- Income and affordability
- 6-year credit history
- Outstanding CCJs and/or debts
- Previous landlord references
At the application stage, tenant’s are asked to provide some of this information, but a full background check is not carried out until referencing begins. This gives lettingaproperty.com and the landlord an understanding of the tenant’s financial history and their suitability for the property,
The information the tenant gives at this stage helps the landlord decide whether to proceed to referencing. As referencing is paid for by the landlord, they want to ensure the tenant they put forward will pass. If the tenant declares something in the application stage that would cause them to fail referencing - like a County Court Judgement or insufficient income - the landlord and tenant can discuss this beforehand and make arrangements that would allow the tenant to pass, such as adding a guarantor.
Alternatively, if no suitable arrangements can be made, the landlord may choose not to proceed with the tenant.