What Checks Should Be Made on a Prospective Tenant?
Landlords can ask prospective tenants to provide:
- A reference from their most recent landlord
- A reference from their current employer
- A bank reference
It’s also advised that you get a credit check on them. If possible a guarantor with assets is very good way to minimise your risk.
New “right to rent” rules mean that landlords now have an obligation to check any prospective tenant’s immigration status to ensure they’re allowed to rent in England (this does not apply in Wales, Scotland or Northern Ireland). The same applies to lodgers. If a landlord is discovered to be letting property to a person who is not legally allowed to remain in England, they can face a penalty fine of £1,000 for the first offence and £3,000 for further offences.
You should ask prospective tenants for proof of residency in England and make copies of these, writing the date on your copies. Proof of residency in England can be provided by the following:
- Valid passport from an EEA country
- Valid ID card from an EEA country
- Valid passport and visa granting the right to rent in England
- Asylum seeker ID card granting the right to rent
There are other options available for those who don’t hold passports. If a prospective tenant’s residency is valid only for a limited time, you should note the date of expiry. A complete list of valid documents showing a right to rent and more information about the rules can be found on the GOV.UK website.
When letting to a company, the company’s details should be checked with Companies House. Credit checks should also be made.
Even when thorough checks are made, you can’t be guaranteed a good tenant. You should still keep an eye on them and be prepared to take action if they fail to pay rent or cause other issues. Ensuring that you have a strong written agreement and a guarantor will help protect you in case of any problems. Helix Law can help landlords construct tenancy agreements and guarantor agreements – speak with our property specialist lawyers today.