I have about 4 tenants on my short list meaning that they all say they earn enough to pay the rent (using the usual calculation). I know tenants often exaggerate income. This is my question, do I ask each one to evidence their earning now by showing me payslips/bank statements and ask a few questions about debt, any criminal records etc. Or do I give each the rather lengthy tenants application form and ask them to fill it in, this will give me info on everything I need to consider. My concern here is that 3 applicants will not get the house and I’m giving them false hope and wasting their time. What is the best way to do this? Thanks
I work down the list in application order. I do a 10 min phonecall where I ask them key questions like what’s your income, do you have any CCJs etc. The ones who pass that get a viewing so I can suss out their vibe when I meet them in person. If they pass that, I give them a data protection form to sign, then take their ID (or share code/DOB) to check right to rent. I ask them to fill in an application form and give me 6 months of bank statements and payslips (if working) for them and guarantor (if relevant). Then it’s onto checking that their work is bona fide. If all that checks out and I’ve got no issues with bank statements or application form, I do referencing.
I usually do all the above except referencing for a few applicants at once as you never know when one will drop out. I only reference an applicant who I would actually offer a tenancy to. If I have any doubt at any point, i simply inform them that I’m proceeding with another applicant and I never give them a reason nor enter into correspondence with them.
If I’ve got close to referencing for a strong applicant and I have new enquiries, I tell them that they’re in the queue but that it’s likely that an earlier applicant will get the tenancy.
I never take the ad off until check in is complete and at that point, I inform anyone still waiting that the property has been let.
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Check their sources of income. Is it salary, or is it anticipated income from online poker games, or crypto gains, or is it gig economy projections, or is it new business projections (only 1 in 7 new businesses survive for more than a year) . . .
Ask them straight if they have any large unavoidable outgoings like alimony. Ask if there are any predictable events which will effect their ability to pay – are they pregnant and so will soon be unable to work, for example.
Then choose the one with the most headroom, excess reliable salaried income after rent and other financial commitments, and proceed with tenant referencing. I avoid the self employed who may fall off a ladder and be unable to pay the rent for months and months and months as a result.
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