What Does Tenant Referencing Actually Tell a Landlord?
You’ve found someone who loves your property. They’ve viewed it, submitted an application and would quite happily move in tomorrow.
Great! Job done?
Well… not quite.
Before recommending a prospective tenant to a landlord, there’s an important stage to complete: tenant referencing.
But what does a tenant reference actually tell us? And perhaps more importantly, what doesn’t it tell us?
It’s about building a picture
Tenant referencing isn’t simply about passing or failing a credit check. A comprehensive reference helps us build a picture of an applicant’s circumstances and their ability to meet the commitments of a tenancy.
At Letting Solutions, prospective tenants are referenced through an independent referencing company, with checks typically looking at several key areas.
Credit history
A credit check can highlight relevant financial information and identify issues that may need further consideration.
It doesn’t necessarily mean that someone with something on their credit history can never rent a property. Circumstances differ, and sometimes there’s a perfectly reasonable explanation.
What matters is that we have the information available so that an informed decision can be made.
Affordability
Being able to afford the rent is obviously rather important!
Referencing considers an applicant’s income against the rent for the property to establish whether the tenancy is considered affordable.
This helps protect both sides. A tenancy that stretches somebody’s finances too far isn’t good for the landlord, but it certainly isn’t good for the tenant either.
The right property needs to be the right financial fit too.
Employment and income
Where applicable, employment and income will be verified as part of the referencing process.
Again, this is about confirming the information provided and establishing that the proposed tenancy is sustainable.
Not everybody’s circumstances fit neatly into the same box, though. Self-employed applicants, retired tenants and those with other sources of income can all require slightly different consideration.
Previous landlord references
Where possible, a previous landlord reference can be incredibly useful.
Has the applicant paid their rent reliably? Have they looked after their previous home? Were there any significant issues during the tenancy?
Past behaviour can provide useful insight – but, as with every other part of referencing, it forms one piece of a much bigger picture.
So, does a good reference guarantee a good tenant?
Here’s the important bit…
No.
Referencing is an extremely valuable tool, but no report can tell you everything about somebody or predict exactly what will happen over the next few years.
And that’s why we don’t believe choosing a tenant should ever be reduced to simply receiving a big green PASS on a computer screen.
There’s a human element too.
From that first enquiry and viewing through to the application and referencing process, we’re getting to know prospective tenants, understanding what they’re looking for and considering whether the property genuinely suits their needs.
Sometimes we ask more questions. Sometimes we request additional information. And occasionally our many years of experience tell us that we need to investigate something a little further.
It’s all part of doing our job properly.
The right tenant, not simply a tenant
A referencing report gives landlords valuable information and helps reduce risk, but good tenant selection combines those checks with experience, communication and a little bit of good old-fashioned common sense.
At Letting Solutions, we’re not interested in finding just anyone to fill an empty property.
We want to find the right tenant for the right home.
Because a successful tenancy isn’t just better for our landlords.
It’s better for our tenants too.
If you’re a landlord in Blackpool or across the Fylde Coast and would like to know more about how we find and reference tenants, we’d be very happy to have a chat.
Letting Solutions
Your Property. Our Priority.
