I am due to carry out the referencing very soon. Below is my formula, please let me know if you think this can be improved: (btw this is for employed perspective tenants)
Employer Reference:
Phone the company via main switch board and ask the following questions:
- Can you confirm that Joe Bloggs is employed at this company?
- What is Joe’s monthly salary?
- What was the date of hire?
- What is Joe’s position in the company?
- What are the terms of employment? Is there a trial or contract period?
- What are the average hours worked?
- Does the Joe come to work on time?
- What are the Joe’s long-term job prospects?
- How do you like working with the Joe?
- Has Joe ever been reprimanded at work?
(Responded by email is fine as long as its from a work email address that is the same showed on the company’s website.)
Landlord and Letting Agent Reference
Phone the landlord and ask the following questions: (if letting agent, phone via main switchboard)
- What is the address of the property they are living at?
- Who is listed on the tenancy agreement?
- Has the tenant lived with anyone else?
- How long has the tenants lived in the property for?
- How much rent does the tenant pay?
- Have the tenants pay their rent on time?
- Have the tenants pay their utility bills?
- How well have the tenants communicated with you?
- Has the property well maintained?
- Does the tenant have any pets?
- Has the tenant on good terms with neighbours and other tenants?
- Has the tenant cause any property damage?
- Would you be happy to rent a property to this tenant again?
(If letting agent, responded by email is fine as long as its from a work email address that is the same showed on the company’s website. If landlord insist on phoning them)
Additional questions for Previous landlords
- Can you confirm the address of the property they stayed at?
- Who is listed on the tenancy agreement?
- Did the tenant live with anyone else?
- How long did the tenant live in the Property?
- Why did the tenant leave?
- How much rent did the tenant pay?
- Did the tenant pay their rent on time?
- Did the tenant pay their utility bills?
- How well did the tenant communicate with you?
- Was the property well maintained?
- Did the tenant have any pets?
- Was the tenant on good terms with neighbours and other tenants (if applicable)
- How much notice to quit did the tenant give?
- Did the tenant cause any property damage?
- Did the tenant get their deposit back in full?
- Would you be happy to rent a property to this tenant again?
Check the ownership of all the landlords on land registry.
Credit Checks on all Working Tenants via NRLA
(Include previous addresses they have lived in for the last 6 years)
If under 600 score enquire about it.
Any CCJs or bankruptcies?
See Following Original Documents in Person:
Last 12 months of current account bank statements, what to look out for:
Cross reference full name & address with utility bills & council tax
Income amount? Cross reference with payslips & employer’s reference
Has income been consistent?
Rent amount? Cross reference with previous AST & landlord’s reference
Rent paid on time? If not, ask why.
Are they in credit and have stayed in credit? If not, ask why.
Are outgoings leaving little or no disposable income?
If outgoings not clearly defined ask what they are.
Ask if they lost their job, how they would cover the rent.
Potential Red Flags on Bank Statements
Large regular gambling transactions?
Bank charges or overdrafts?
Large standing orders?
The word “LOAN” in transaction references between family & friends
Most Recent Savings Account Bank Statement
How many months rent would the savings cover if they lost their job?
Are they saving regularly?
Do the same checks as above minus salary & rent.
Proof of where they have been living
Last 3 months of utility bills and one council tax bill
Right to Rent Checks
Follow user guide on governments website.
Make sure the tenants are present and that you take copies.
Please let me know if this can be improved or if anything is missing at all. Also please share any thoughts you may have. Thanks!
In case anyone is wondering why I don’t use a referencing company, its because there is no guarantee that they will do a thorough job and the reports they provide are vague and don't provide any strong reassurance.
