Landlords are increasingly campaigning for stricter measures to guard against tenants moving in and then not paying their rent. A recent landlord survey revealed that 70% of them believed that looking at tenant credit checks was a good indication of whether or not they would fall into arrears. By law, the only identity checks which a landlord or letting agency has to do is the Right to Rent check, which establishes whether someone is in the UK legally. A Right to Rent check just involves looking at passports and other immigration status documents, whereas the other screening which agencies and landlords might want to do are purely optional. This means that the checks could vary between different agencies.

Why Are Landlords Worried?

According to findings from a large lettings agency company, financial worries loom large among landlords in England, exacerbated by rising mortgage rates, heightened taxes, and escalating maintenance costs, all of which impact profitability. Increased legislation means that it’s not as easy as previous to evict tenants who cause problems or don’t pay their rent. This is good news for decent tenants who are no longer at risk of an unfair eviction, but does mean that landlords are spending more time and effort at the beginning of the tenancy to delve deeper into someone’s background. A large number of landlords have also called for local Councils or central government to set up a register which contains the names of tenants who have been proven to damage properties, or who have a history of non-payment of rent.

What Credit and other Checks Can I Expect?

As discussed previously, the only checks which are legally mandated are the checks on nationality and the right to live in the UK. Any other checks are voluntary and will vary. However, there are checks which are more common than others and prospective tenants can expect:

• Reference checking – landlords or agents will want you to supply the names and contact details of people you have rented property from before so they can vouch for you.
• Credit check – landlords are less interested in what you’re spending your money on than whether you have enough money coming in to easily meet the rent payments. Large levels of debt are going to raise concerns.
• Employment check – related to income checks, the employment check looks at whether you are telling the truth about whether you are in regular, steady employment. The actual salary is less important than the affordability of the rent.

Checks for Guarantors

For younger tenants, or for those who have a less stable income, they may be asked to provide a guarantor. A guarantor is someone who steps in if the tenant is not able to pay the rent for whatever reason. Landlords and agencies will want to run similar checks on the guarantor too. Think carefully about who you choose as a guarantor if you are asked to supply one by an agency. Usually, a parent or other close family member is an appropriate choice.