How Does Referencing Work?
So you’ve decided on a place to rent and you’re wondering what comes next? The time has come to get all your ducks in a row and sort out your tenant referencing paperwork - exciting stuff! But what is tenant referencing and why is it such a process?
Why Do I Need to Go Through Referencing?
Referencing exists to provide landlords with a better understanding of their potential tenants - this is done via a third party. You will have to disclose details such as annual income, employment status, contract length and bank details to name a few. Sometimes employers can take a while to confirm details of employment which often delays the process. So be sure to ask your employer ahead of time for this information! If done correctly the process should only take a day or two to get sorted. Reference checks for tenants are nowhere near as scary as they sound… they really are simply just a way to verify your identity and income. Still, we've put together this little guide to help break down the process for you.
Inform Your Referees Ahead of Time
Landlords and agents will most likely follow through with tenant referencing by calling either your employer and/or previous landlord. It’s vital to inform your referees ahead of time so they understand the importance of the call - not only this but your referees may not be expecting the call and this could potentially delay the process overall.
Work Out Your Household Income
One of the main reasons tenant referencing checks exist is to ensure the potential tenants can afford the property long term. Typically, you will need to provide evidence that your household earnings can easily cover the cost of the annual rent, as well as providing a satisfactory credit score.
Secure A Guarantor In Advance!
You might not be too confident you will pass your tenant referencing check, or maybe you are absolutely sure you will! Regardless - never leave things to chance. The best way to cover all your bases is to make sure you ALWAYS have a plan B. In this case - a guarantor. This could be a parent or trusted family member who can agree to take on your rental responsibilities should you be unable to pay. Hopefully it won't come to that - but oftentimes landlords won't go ahead with the rental agreement if you do not pass the credit check and there is no satisfactory guarantor agreement in place when this happens!
Get Your Documents in Order
Tenant Referencing can be a lengthy process and oftentimes can drag on a bit longer than anyone would like… one way to combat this is to make sure you have all your documents in order well in advance. This includes credit score information, getting your deposit and other fees ready to go and all your bank details and referee contact details to hand.
Honesty Is The Best Policy
Be sure to be upfront and honest with your landlord when it comes to tenant reference checks, not only does this help to establish trust but it also covers your own back! Do let your landlord or letting agent know of any details you think they may need to know ahead of time, or might slow the process down the line. For example maybe a previous disagreement with a landlord that could have resulted in a poor reference… if this is the case it’s always a good idea to let them know your side of the story before they come across any information that might paint you in a bad light.
So there you have it! The process of tenant referencing is nowhere near as daunting as it sounds, just be sure to make it as easy on yourself as possible by following the tips above. We hope this guide will help you in navigating your next tenant referencing process.
If you’re looking for a team of experienced letting agents to help you with the process from start to finish give us a call!
Phone - 02039278585
Email - care@evernest.co.uk
