I’m currently in the process of onboarding two new tenants for a property, and I’d love some advice from the community on a couple of things:
Latest Compliance/Documents Required: With the updated regulations and the implementation of the Renters’ Rights Act framework, what are the exact documents and written statements you are making sure to provide to new tenants before a tenancy is agreed/signed?
Letting History & Alternative ID/References: My prospective tenants passed all of their credit, job, and affordability checks brilliantly. However, their referencing reports noted “Proceed Cautiously” for their letting history because they previously lived with friends or family rather than renting commercially, meaning there was no formal landlord reference available. They are providing character/stay confirmation letters from their friends to cover this.
Given this situation, what alternative forms of ID or extra checks do experienced landlords usually ask for or recommend to feel completely secure?
Any tips or checklists would be hugely appreciated! Thanks in advance.
I strongly suggest you join a landlord association and follow their guides. There’s a lot of paperwork you need to get right when staring a tenancy.
Alternatively, use OpenRent and they’ll make sure everything is done correctly and in the right order.
As for checking tenants, have you collected 6 months of bank statements from each applicant and checked them? I consider that the priority before referencing.
If they have never rented before, you will need to make sure they are aware of their responsibilities in terms of maintaining the property, reporting issues promptly, inspections, utilities etc. They likely won’t have a clue if they’ve only lived with family/friends before.
Have they ever lived together by themselves before? They may be in a new relationship and that adds an element of risk as it may not last and you may find one of them wants to leave and the other can’t afford it by themselves.
The referencing has comeback positive on affordability, background checks, passports, share codes they have provided everything.
they have been married for sometime and lived with friends for the last 6 years. That was the precaution.
When they viewed the property I have shared a everything with them on inspections, deposits, accountability.
In terms of documentation to provide to them when the move in the right to rent booklet has been scrapped according to the gov website and replaced with the rights to rent. This is not clear if it should be the document to provide to them alongside the Eicr,ECP, etc.
I would need to know a lot more about their previous accommodation arrangements. A couple living with friends rent-free for 6 years must surely be extremely unusual and I would be immediately suspicious of it. Do they have evidence they lived there, such as bank statements, driving licences etc with that address?
So a couple have lived rent free or reduced rent with friends for 6 years.
They still will have needed some form of tenancy agreement saying how much to pay when (unless entirely rent free) and matching payments from bank accounts
If they couldnt afford to rent at market rate before, or chose not to, why do you trust they will do now, which will reduce their disposable income.
I’d avoid certainly unless they can offer a guarantor who passes so you can get RGI.
I assume you didn’t do this as you didn’t mention it in your reply. Affordability is simply a check that current income matches 2.5x monthly rent, but bank statements give you far more insight into their lives than anything else you currently have. They could, for example, have large amounts of debt and/or come close to zero each month because they have uncontrolled spending.
And, if they were paying rent to their friends, that will show up on their statements and corroborate their story.
I have asked them for bank statement, car road tax bill, insurance, pay slips with an address etc in addition as proof of address. The open rent background checks also goes beyond affordability looks for debts, county court judgment etc. all was clear. Their employer provided reference too.
They moved from Brazil, coming up six years now and have been stable working and have a gov share code.
OK, well that’s encouraging. Living with friends after moving from another country sounds more plausible, but I think its still worth pressing them for evidence.