Reference checks
Reference checks are the enquiries a landlord or letting agent makes about a prospective tenant before granting a tenancy, to help assess risk and comply with legal duties. They usually cover identity, credit history, income and employment, previous landlord or agent references, and where relevant the tenant’s right to rent in the UK under immigration rules.
From a landlord’s perspective, good reference checks help answer key questions: Can they afford the rent? Do they have a track record of paying on time? Have there been problems such as serious arrears or damage before? The process often involves a specialist referencing company, but can also be done directly by asking for payslips, bank statements and contact details for employers and former landlords.
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Under the tenant fee rules, reinforced within the wider Renters’ Rights Act framework, landlords cannot charge tenants separately for reference checks. These are a business cost to be priced into the rent. Any checks used must be fair, transparent and non-discriminatory, and decisions should be based on consistent criteria rather than stereotypes.
Thorough reference checks are not a guarantee against future issues, but they are an important part of demonstrating that a landlord has acted responsibly and proportionately when choosing a tenant.
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