Tenancy checks can be simple or comprehensive. A simple tenant reference report contains only the credit check score. A comprehensive tenant report, on the other hand, is much more detailed and contains much more information. Carrying out a detailed tenant reference report is aimed at providing an in-depth analysis on whether an applicant is suitable for a rental property. A comprehensive tenant reference report contains the following information:
- Identity Verification: This confirms the name, face and address which has been provided by an applicant. It is aimed at verifying that the applicant is not using a false name or posing as another individual.
- Credit Check: A credit check confirms the individual is not in debt, or has a history of debt and bankruptcy. Credit checks confirm the salary of the applicant and also takes a look at their bill-paying history. If the individual has not been paying their bills in a responsible manner, it goes to show they might not be responsible with rent payment.
- Reference From a Current Employer: The agency handling the reference check will contact the current employer of the applicant to confirm their salary status. This is used to confirm the applicant is truly employed and not giving false information about their employment or the salary they are earning. The employer can provide a written reference for documentation purposes.
- Reference From a Previous or Current Landlord: The tenant will be required to make a reference available from a current or previous landlord. This will be in written form and is aimed at confirming the applicant was a good tenant in the previous property they occupied. In some cases the landlord will be contacted directly to ensure the applicant does not provide a false reference. If the applicant provides a false reference, this shows they are hiding something.
- Ability To Afford The Property: By bringing together information from the credit check and the employment status of the applicant, the agency handling the reference report will then be able to give a comprehensive analysis. This analysis will outline if the applicant will be able to comfortably afford the rent.
Through the combination of the above information, a landlord will then be able to make an informed decision on whether to rent the property out to the applicant or not. It can be a good pointer on whether an applicant will make a bad or good tenant.