Background checks and references
References
It is a good idea to get references from prospective tenants before signing any tenancy. This will help you to get an indication of their likelihood to be able to pay their rent, their reliability at doing so, and to flag any other issues such as previous antisocial behaviour.
References will generally be an employment reference and details from previous landlords. You may also wish to include a character reference. A professional referencing company can help you achieve this.
A prospective tenant on housing benefit may not have the advantage of an employer reference or bank account reference, but once the benefit claim has been processed, their payment of benefit is likely to be regular and predictable. When carrying out checks on potential tenants it is important to have both proof of identity and proof of current address. These can be established from a driving licence, passport or other document containing a photograph. A utility bill or bank statement will confirm a current address.
Right to rent checks
Landlords must check the immigration status of all adults before they let a property, regardless of the applicant's nationality or status.
EEA citizens and their family members now need immigration status in the UK, in the same way as other foreign nationals, and can’t rely on an EEA passport or national ID card to prove their right to rent. Most will have applied to the EU Settlement Scheme and already have digital evidence of their UK immigration status. Tenants with settled status can evidence their right to rent by sharing their immigration status digitally using the online service which includes their photograph and personal details.
Follow the government guidance on how to check your tenant has the right to rent and the guide to acceptable documents.
Credit checks and guarantors
Some landlords use credit searches to help find out how reliable a prospective tenant is by looking at their past record for paying debts on time. If you are going to carry out a credit check you should get the tenant’s permission first.
If any of the pre-tenancy checks raise concerns, it might be advisable to request a guarantor for their tenancy.
Data protection
As you will be collecting and storing tenants' personal data, you will need to comply with GDPR requirements.