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  • What does an estate agency check before finalising tenants?

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Dated:
Feb 03, 2023
Read Time:
Topic:
Estate Agent

What does an estate agency check before finalising tenants?

Choosing the best tenants is a challenging task. That is why several landlords rely on estate agencies to rent their properties safely. A reliable tenant always abides by your rental agreement and resides in your property without disputes. However, the professional letting agents know how to find qualified tenants with a proper screening process. A background check ensures that your tenant is honest and may not cause conflicts in the future.

How do estate agents qualify your tenants?

Your agent will first communicate with your tenants directly or by making a phone call. He will describe everything about your property and ask a few questions to tenants. For instance, the agent may ask questions related to-

• The number of family members

• Reasons for choosing a rental house

• Marriage status

• Drinking and smoking habits

• Previous landlords' details

A good tenant will answer the question correctly. The overall screening process will become smoother.

Your professional letting agent also checks some other things to ensure the reliability of your tenants. He evaluates tenants' behaviour and attitude while communicating with them face to face.

Credit check for tenants-

The credit check process ensures that tenants can pay their rent on time. It reveals the credit history of tenants and their capability to pay the due amount.

Credit searches by landlords and letting agents are referred to as soft checks. But, what can letting agents see on credit checks?

• Missed payments in the past and the consequent insolvencies

• Status of the electoral roll to prove address

• The link of credit accounts to the address and name of the credit report

However, one demerit is that soft credit checks cannot reveal comprehensive details about the amount borrowed by the tenant.

Tenant reference checks in the UK-

A detailed reference check of tenants is highly important for ensuring their trustworthiness in the UK. This process is intended to confirm that the tenant can pay the monthly rent on time. Surely, there is no way to guarantee how the renter will behave with you in the future. Still, tenant checks provide you with an insight into families chosen as tenants.

To have references for renting the first-time UK, you can hire an estate agent. You do not need to deal with the reference check process for your tenants.

Proper referencing safeguards you and your rental property. Your agent will conduct the vetting process by checking the tenants'-

Proof of Identity

It is important to ask the tenant to submit a copy of the photo ID (like passport and driver's license). Other types of identifications are also acceptable for screening tenants.

The financial situation of the tenant

The biggest concern of landlords is about the tenant's potential to abide by the monthly rental obligations. A background check helps in finding evidence of their financial status. Some common documents chosen as proof are

• Proof of any benefits provided by the government

• Proof of employment- A contract copy, recent payslips, or an employer's letter

• Bank statements (in case of the self-employed persons)

But, is it legal for a landlord to ask for bank statements in the UK? There is nothing illegal in asking a tenant to show his latest bank statements. Tenants failing to pay monthly rent can cause a big issue. That is why landlords have the right to check bank statements. However, they should not discriminate unlawfully.

As a landlord, you know nothing about the new tenants. Thus, the documents can be the strongest evidence.

Guarantor details

You are highly concerned about the tenants' ability to afford monthly. In this case, you may ask the tenant for a guarantor. Several landlords who rent out their properties to students prefer a guarantor. Thus, the credit history of the guarantor should be checked. It ensures that you will be able to pay the rent when tenants have failed to do it.

But, when the potential tenants cannot find a guarantor, they have to deposit an amount upfront. This amount will enable you to manage any financial conflicts with tenants in the future.

Landlord reference

It is already said that an agent asks questions about the tenant's previous landlords.

• Have the tenants paid an outstanding amount as rent?

• Have they damaged any part of the rental house?

• Are there any issues with neighbours?

An unwillingness of tenants to provide these details gives a negative signal. You can avoid renting your house to them.

How long does a reference check take for renting, UK?

On average, the time needed for a reference check for renting in the UK is 48 hours. But, the number of checks done by the estate agent can make a difference in the overall duration. Other factors can delay the process-

• The inability of the tenant to find the guarantor

• The tenant is a freelancer or unemployed.

• The tenant may take a longer time to gather essential details

• Previous landlord, refusing to give a reference for some reason

Tenant reference check fail-

In case of failure of tenant reference checks, you have the right to hold the deposit for 15 days. However, the rule is not applicable when the potential tenant and the landlord accept a longer deadline. It is done when you need further checks for your tenant.

According to the Tenant Fees Act, landlords have the right to retain their holding deposits in 4 scenarios.

• Failure of tenants to deal with the right-to-rent check;

• Misleading and incorrect details provided by tenants

• The tenant pulled out of the process of application before the agreement's

• Your tenants have not taken steps to sign a tenancy contract.

Do you now like to hire estate agents to find the best tenants? You can visit the online platform, TRPE to engage the most reliable realty agent. This UK-based company has a team of property agents and other real estate professionals to help you efficiently. You will find a comprehensive guide from the dedicated team at TRPE- The Real Property Experts. Let them know your needs, and you will get the best solution from TRPE.

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