Could tenant provide their own referencing/credit check info?

Could tenant provide their own referencing/credit check info?

8:42 AM, 14th February 2022, About 3 months ago 10

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Is there anything stopping you from asking your prospective tenant to do their own credit referencing etc. and give you copies of the details?

Wouldn’t this take away the cost and time of the landlord searching for this info and speed up an application?

With competition so rife for rentals, surely the best candidate who wanted to rent would be more than happy to do this to ‘prove themselves’ creditworthy?

If the landlord was still worried, surely a quick call to the referencing agency to confirm this was valid would be all that is required?

DSR



Comments

by steve p

9:47 AM, 14th February 2022, About 3 months ago

I think this was already covered when the tenants fee ban came in and it included anything where a tenant had to sign up and pay to be able to get the property...

If it is a requirement to get the property that the tenants do their own referencing and presuming you would require them to use a specific company or any company that would charge then it would be in breach of the tenants fees ban..

The legislation was quite comprehensive to stop any loopholes..

by Elisabeth Beckett

10:06 AM, 14th February 2022, About 3 months ago

They can do a report on ClearScore free of charge and give you a copy of the report which wouldn’t breach any tenant fee ban

by David Price

10:56 AM, 14th February 2022, About 3 months ago

Reply to the comment left by Elisabeth Beckett at 14/02/2022 - 10:06
I require all my applicants to do just that but so far none have complied, none have been granted a tenancy,

by Ian Narbeth

11:32 AM, 14th February 2022, About 3 months ago

DSR, a landlord "must not require a relevant person [e.g. a tenant or guarantor} to make a prohibited payment to a third party ".

You cannot therefore insist they do their own credit referencing if that will cost them a penny. You can, however, say: "You are under no obligation, but it will assist my ability to process your application promptly if I were to receive a credit reference from a recognised referencing agency."

by NewYorkie

12:39 PM, 14th February 2022, About 3 months ago

Subject to the 'cost' issue, I see no reason why a LL shouldn't ask for a copy of a credit reference, employer details with salary, 3 months' bank statements, current/previous landlord's reference... in fact, anything which the prospective tenant believes will help them obtain the rental.

by David Price

14:37 PM, 14th February 2022, About 3 months ago

Reply to the comment left by Elisabeth Beckett at 14/02/2022 - 10:06
But do not ask them to pay for a stamp to send you a copy!

by Suresh Parikh

14:50 PM, 15th February 2022, About 3 months ago

Be registered with the ICO, and have a GDPR policy in place, and you can ask the prospective tenant/applicant to email you their 3 months' bank statements, Pay slips; and obtain by e-mail a reference from their previous landlord and their HR.
They sign my Application form in which they agree to
the use of e-mail for serving of documents in pdf format and not a link.

by DSR

9:31 AM, 16th February 2022, About 3 months ago

Reply to the comment left by David Price at 14/02/2022 - 14:37
...,.but I could suggested they scan/email me a copy presumably!

I think I am going to state "You are under no obligation, but it will assist my ability to process your application promptly if I were to receive a credit reference from a recognised referencing agency. A suggested method would be to forward a copy of this by email should you choose to do this.

I think that gets around the issue of the tenant fee ban and also an additional way of filtering out the less serious applicants.

by Kate Mellor

11:04 AM, 19th February 2022, About 3 months ago

One issue with this is that the amount of information provided in a credit reference of this type is potentially too extensive and many applicants and possibly the ICO find it so.

by Jessie Jones

13:11 PM, 19th February 2022, About 3 months ago

If you are finding that the cost of referencing is high, then you can increase the rent for the initial fixed term until such time as you have recovered your expenses. If the tenant stays longer than the fixed term, then you can choose not to increase the rent, and inflation will bring the rent more in line with local trends.
All landlords are in a similar position, and rents are soaring across the country. It is the meddling by government and councils that is causing this. You won't have any difficulty in finding tenants who will pay a higher rent, as they are all having to do this to pay for the increasing costs for landlords.


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