As the UK’s largest tenant referencing company and with our 25 years of experience we know how exciting (and stressful) it can be when you’re waiting to find out if you can rent a property. Our aim is to make the process as quick as possible and help to get you moved. So, we’ve put together a few top tips to shed some light on the tenant referencing process and how you could help to speed things up.
Why do I need to be referenced?
For a landlord, your future home often represents a significant investment or might have a high sentimental value to them. A Tenant Reference tells the landlord a little more about you, as the person who will rent their property, it gives them the reassurance that you are suitable for the tenancy and can afford the monthly rental payments. Typically, the checks include a credit search, bank account validation, confirmation of employment and, if applicable, a reference from your previous landlord.
As a tenant, what can I do?
By following these steps, you can help to speed up the process on your end and be one step closer to moving into your new home.
Work out what you can afford
Before you fall in love with a property, figure out what you can afford to pay. Typically, you’ll usually need a gross income of around two and half times the annual rent. So, for example, if you’re looking at renting a property that costs £800 per month, it’s likely you’ll need a household income of at least £24,000 (£800 x 12 months x 2.5 = £24,000).
If you think you’re unlikely to pass referencing based on your affordability, you may be able to ask for a guarantor to support you. A guarantor is usually a parent or guardian who will agree to take on the responsibility for the rent of the property – in other words, if you don’t pay your rent or for any damages to the property (over the deposit amount), it is your guarantor’s responsibility to foot the bill.
It’s also worth noting that some properties come with bills included and others don’t – in which case you’ll need to consider regular payments such as gas, electricity, water, council tax and insurance. Your letting agent or landlord should be able to tell you what council tax banding the property is under, but you can always check council tax valuations online.
Keep your guarantor updated
If you do need a guarantor, we’ll need to reference them in the same way, which means they’ll have to undergo a credit check and an employer reference. Letting your guarantor know in advance about the checks can help make sure the process runs smoothly.
Be honest about your circumstances
A poor credit history doesn’t automatically mean you’ll be declined an application, but failing to disclose this up front may see you being put in a bad light.
With HomeLet, our references include a credit searches, so we’ll check things like:
- Any adverse credit history, such as bankruptcy, County Court Judgments (CCJs) and court decrees
- If you have any previous names and addresses which you may not have disclosed
- Whether there’s any undisclosed credit history which is linked to your current and most recent homes
- Any bank account details you provide are for a genuine back account
Have your paperwork handy
You could be asked for your bank account details or a bank statement to verify your bank account along with your passport and any relevant visas to prove your right to live in the UK. Having these ready will help you to keep your application ticking along and prevent any unnecessary delays.
Give your referees a heads-up
We have strong links with all major UK employers, but we’ll still need your authorisation to contact your employer. Without their answers, the application can’t usually go any further, so by giving them prior notice, you can really help to speed up the process.
You can also find out more about HomeLet’s referencing process on our ‘Being referenced’ page.