Referencing costs

I know the law doesn’t allow the tenant to be charged with the referencing costs.

My chosen tenant pulled out when I asked whether she could find a guarantor as she came in as medium risk & I couldn’t get RGI insurance because of that.

How pathetic is that? I only asked whether she is able to find one. I didn’t ask her to get one. And yet she felt insulted & pulled out.

Still i have to bear the cost of referencing. This is unfair.
And I don’t know what purpose a holding deposit serves. There has to be some way to stop this ridiculous behaviour of some tenants.

Rant over!

Many will come in as a medium risk. thats why if they prove income for you before a reference you may save yourself £20.

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So I should ask for some proof of income before I proceed to referencing?
What level of income should I be looking for? Is there a formula or something?

Will the tenant be happy to provide this?

eventually the tenant has to prove income so you can ask for it whenever you want… If your rent is for example £700 per month I would be looking for an income of 3 and a half times that, per month. The thing is you wont know what their other monthly outgoings are if you dont see a bank statement PS if the tenant is not happy to provide this. then they are not for you!

I use Canopy basic references are free then I use the template letters for NLA to send to the employer and previous landlord. Most high street agents will want to see a minimum income of 3x the rent.

Hi Aaron, do you recommend Canopy for reference/credit checks? Thank you.