Self employed tenant reference check

An agent introduced a tenant who has paid a holding deposit and now the reference check is in progress. Then I found out that the potential is actually self employed as the CEO of his own limited company; and he only came to the UK two years ago. According to the agent, the tenant claimed he makes £110k per year. I went to the government website checking his company record; it’s just a shell company having no transaction whatsoever in the last two years.

I don’t think the reference checking can find too much given he hasn’t been in the UK for long. I am having a bad feeling about this. Is there any way I can do extra check? Or I should just walk away to be safe rather than being sorry later? I will have to pay the agent £400 for admin fee if the reference check doesn’t find any problem according to the contract with the agent. But that’s still better than more serious problems later I think.

Someone suggested a 6 month or a whole year rent upfront; this doesn’t give me full assurance though. Maybe a guarantor is useful here?

You should personally be checking several months bank statements and 2 years of SA302.

However with no trading history it sounds like it’s all a non starter, unless you have checked the wrong company name.

As I’ve said previously, guarantor certainly helps and rent upfront.

Are you getting rent guarantee insurance? If so they will need to be satisfied.

1 Like

I will definitely get rent guarantee but not sure which one I will be using; probably direct line landlord insurance with rent guarantee add on.
Don’t know which reference checking company the agent is using. Once reference checking report is done, I will double check with direct line to make sure they’re satisfied.
Thanks for the heads-up!

The reference check just came back and it says the prospective tenant has 0 annual income but a saving of £87k and hence PASSED the reference check done by RightMove. This doesn’t make much sense to me!

To me that is ridiculous that it’s passed. I cannot see how any rent guarantee scheme would accept this.

Ask the agent if their own rent guarantee scheme would accept this tenant based on zero income.

He could buy a Porsche tomorrow and then there’s nothing!

1 Like

this is a laugh no income and plenty in the bank… plainly reject

My takeaways from this: Get a better agent who applies some common sense and always do your own referencing (I always do).


take 5 years upfront and hope he has a job at the end of it. !!!

Unbelievable; after I said I can’t accept someone within 0 annual income. The agent asked Rightmove to do the reference again; now they issued a new report saying the tenant’s annual income is 95k.
Sounds like a magic number they just made up.

Now I am asking to see tenant’s previous 12 months’ bank statement or pay slips and his P60.

Does agents rent guarantee scheme accept tenants with no annual income and savings only?

Agent said because the reference checking is done by Rightmove, I can buy a rent guarantee from Rightmove.

This topic was automatically closed 90 days after the last reply. New replies are no longer allowed.