Do I have to be referenced to rent a flat and what does it involve? Do all people moving in have to be referenced?
Yes! Every person (adult over the age of 18) considering moving into a rented property needs to be referenced. Referencing will be carried out on a case by case basis reviewing each tenant applicant / group of applicants for a tenancy on the basis of 3 main areas . These include :
Affordability - looking at all income streams for each applicant / group of applicants
Behaviour - considering conduct of applicants both in terms of prior rental payments and how they have acted in looking after previous properties
Creditworthiness - with consideration to a credit risk / score and prior credit history
There are a number of documents that need to be collected from all prospective tenants / applicants in assessing them for a tenancy / referencing process.
At ludlowthompson we will generally need the following documents as part of the referencing process:
Photo ID (Passport, Driving License, Biometric ID card etc). You will need to provide a copy as part of the referencing process and to bring this to the office as the original prior to signing the agreement
Proof of Address
3 Months Bank Statements (and copy of front of bank card if sending online bank statements)
3 Months Wage Slips
Visa (if applicable)
An employment reference and landlord reference will also be obtained and a credit check organised.
For self-employed tenants an accountant’s reference is also required, and students, or those with no income or insufficient income to demonstrate affordability will need to give details of a guarantor who can pay their rent in the event of them not being able to do so.
Other additional income streams will also need to be verified - eg. pension statements, benefits letters / payments confirmaton
The referencing process ensures that you are able to afford the monthly rent payments and that your immigration status allows you to rent property legally in the UK as it is a legal requirement for all landlords and letting agents to have verified that a tenant has a 'Right to Rent'.
If you fail the referencing you may still be able to rent a property. Please see WHAT CAN I DO IF I FAIL REFERENCING?
3rd July 2015
DISCLAIMER: Neither ludlowthompson nor their ‘experts’ take any responsibility for any action or loss incurred by readers of these pages. The reader acts on advice at their own risk. Answers to questions are not exhaustive. Financial advice must always be sought from a professional financial adviser
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