There are all manner of things that a landlord can reasonably ask for when they’re interviewing and screening a potential tenant. That could be proof of identity using a passport or the like, bank and work references, credit scoring, recommendation from previous landlords and even personal character references. Your aim is get the information you need to make a judgment on whether the person is someone you want as a tenant.
Of course, establishing a tenant’s identity is crucial, but in a lot of cases we wonder how useful all these checks and things really are. Is a bank’s agreement that a person can meet the rent a genuine reflection of a person? Or do these various pieces of paper just reassure a jittery landlord?
Don’t assume the worst if a tenant can’t provide a reference from a previous landlord. If you think about it, there are numerous entirely legitimate and everyday reasons why a tenant might not be able to provide one. Maybe they’re a first time tenant, maybe they’ve been abroad for a number of years and haven’t rented in Britain for a while or they might have had a sudden change in their personal circumstances. Divorce or a relationship breakdown could mean that someone who has been living in their own home for many years needs to rent.
And thinking about it another way: it’s a strikingly honest approach. We can’t help thinking that the deliberately fraudulent tenant would simply have faked or organised a friend to do their lying for them. Remember, all these references do is review past performance and that, as we are constantly reminded, isn’t an indicator of future performance.
So, establish why they don’t have a previous landlord’s reference and take it from there. If it's because they defaulted on their rent or had another issue with their landlord, that is a cause for concern. But do piece together other documents and, if necessary, ask for additional protection in the guise of a guarantor. And don’t neglect your instincts. What is your gut feel about them? You animal senses are much more likely to be accurate and trustworthy than what other people tell you.
Image source: Djinas
I always wince slightly when I hear the phrase "gut feeling."
I consider myself a good judge of character. But then again, don't we all? I have got it wrong, and I expect you have too, Dan. I hope you don't mind me saying so, but brains beat guts every time.
There may be a good reason why the potential tenant hasn't got a reference. And you're quite right Dan, a crook can always fake one. That's what makes them crooks.
Much better than a reference is a home-owner guarantor. If someone they know (family member/best friend) is not willing to put their own home on the line to vouch for them, then why should you put your own property on the line?
It only costs £4 to do an instant on-line property search at the Land Registry's website to make sure that the guarantor does really DOES own the property.
Interestingly, the one-page guarantor form requires the guarantor's signature to be witnessed while the AST contract does not.
The incoming tenant should be left in no doubt that if there is any shenanigans you will be going for their guarantor's pocket and attaching the arrears to the guarantor's property rather than chasing the non-paying tenant through the courts! They will no doubt add the CCJ to their collection and you can whistle for your money.
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