Wednesday, 15 April 2015

The importance of tenant referencing

Applying for a mortgage is traditionally a time consuming and stressful process. Lenders are asking for more and more information and it can be a very intrusive process. Credit checks to proof of earnings and expenditure will all be required before a mortgage application is approved.

Applying for a rental property can also be an intrusive process and tenants need to be aware that they will have to provide a lot of information before a lease is signed.  Our landlords are not prepared to let tenants move in without back ground checks just to get quick rent coming in. Don't get me wrong tenants can move into properties with excellent references and then lose their job during their tenancy or split from a partner. That's life and those situations need handled professionally and quickly but setting up a tenancy with good referencing and checks completed should set a tenancy off in the right direction.

Below is a review from an unsuccessful tenant and my response.  It is clear that the tenants were annoyed that they had begun the process of renting a flat but unfortunately their references were not accepted by the landlord and their full deposit was returned.

You might think it strange that I am posting a bad review about my company but I'm sure you understand my reasoning. It shows that our referencing process is thorough and that we will not progress applications from unsuitable tenants.

Tenant review-

"My wife and I found a beautiful place in Edinburgh close to Uni with just enough space, great location and rent. Unfortunately, we have been in country for less then 6 months so we don't have any credit rating in the UK. The agents told us that if we put up the max legal deposit of two months rent that it shouldn't be an issue.
Wednesday, we bring in the check and schedule to sign the lease on Friday. We also give our present landlord 30days notice and start looking into letting a van for the move. Thursday the agency calls and says that they need more documentation on previous places we have lived, copies of our passports and visas, etc. We need to prove we are who we say we are and some background and we can't sign the lease until we finish all the documentation. Frustrating but understandable as they need to cover all their legal bases. Then Friday morning happens. They call us again saying that the landlord rejected the application. The agency had already cashed the deposit check and had to write us a refund check. Thankfully for the full amount.
It is obvious that they were so focused on filling an empty flat that they completely disregarded any standard protocol of making sure the landlord approved of us.
Do not trust a word they say. If you have to let from Ace PM then double check everything and move very slowly."


My response-

I understand your frustration at being refused the property on Dalry Road. It is disappointing that your application was not successful because we have had several other viewings and you appeared to be the best potential tenants. The property is now back on the market and we hope we can find a suitable tenant quickly
You have clearly stated how our application process works at ACE Property Management. At no time were you told that you had been accepted as tenants for the flat and indeed it was when carrying out our standard protocol that certain situations came to light.
At ACE Property Management if an application is refused a tenant will always have their full deposit returned.

You are correct that an interested tenant will pay a deposit to take a property off the market (and by law 2 months rent is the most that can be taken) and then we would begin referencing.
I’m glad that you understand we need proof and identification that you are actually who you say you are!
We certainly do not cut any corners when trying to rent a flat so our referencing process is extremely important.

I hope any landlord reading this review realises that Coral and Ryan are frustrated at not passing our references checks but that we do not take on tenants that cannot pass our credit requirements..
I would encourage tenants to check everything on application before applying for a property as any issues with a reference request may cause your application to be refused.
Alan Nash

The review was taken from http://www.allagents.co.uk/ace-property-management/

When applying for an ACE Property Management property tenants are given the opportunity to provide all required documents themselves. We require the following-

Professional Let-
Landlords reference
Employers reference
3 months Payslips
Proof of savings when required
Credit check- from Experian or Equifax

Student Let-
Previous Landlord Reference
University matriculation details
Guarantor agreement (UK Guarantor only)
Guarantors will need to provide a credit check and payslips
A double deposit will be required for overseas students.
Credit Check if possible

Image result for let alliance

Often tenants do not have time to source the information that we require on application so they choose to use a referencing company. We are associated with Let Alliance who take the stress and time consuming aspect of supplying references away from a tenant. There is a charge for their service.

Check out their website for further information and services- http://www.letalliance.co.uk

3 comments:

  1. You have doing great work out i see your all blogs its full of great knowledge and information.
    if student want more information about rental property they can see my link feel free .
    thanks keep it up



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  2. I’ve connected with numerous people who got scammed by tenants.
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