Tenants

This is usually carried out by a referencing agency and organised by the landlord or estate agent, and gives the landlord information about your current circumstances and credit history.

Referencing typically involves gathering information about a prospective tenant to assess their suitability for renting a property.

Here's how it generally works:

1. Application Form: The prospective tenant completes an application form provided by a third-party referencing company. This form collects personal details, including full name, current address, employment information, and previous rental history.

2. Credit Check: A credit check is conducted to assess the tenant's financial history, including any outstanding debts, loans, or bankruptcies. This helps determine if the tenant has a reliable financial track record.

3. Employment Verification: The tenant's employment details are verified to ensure they have a stable income to afford the rent. This may involve contacting the employer directly or requesting recent pay stubs or bank statements.

4. Previous Landlord References: The tenant's previous landlords may be contacted to obtain references regarding their rental history. This helps assess factors such as payment punctuality, property upkeep, and behaviour as a tenant.

5. Right to Rent Check: In certain countries like the UK, landlords are required to verify the immigration status of prospective tenants to ensure they have the right to rent property in the country.

6. Additional Checks: Depending on the landlord or letting agent's policies, additional checks such as criminal background checks or rental guarantor checks may be conducted.

What if I am self-employed?

If you're self-employed, the referencing process may involve additional steps to verify your income and financial stability.
Here's how it typically works:

1. Accountant's Reference: We will request a reference from your accountant to verify your income and financial stability. This reference may include details about your business, income, and financial standing. Along with open banking.

2. Credit Check: A credit check is still typically conducted to assess your credit history and financial responsibility. This helps landlords evaluate your ability to meet rental payments.

3. Previous Landlord References: If applicacble, references from previous landlords may still be requested to verify your rental history and behaviour as a tenant.

4. Additional Documentation: You may be asked to provide additional documentation to support your application, such as business registration documents, proof of address, or identification documents.

- Address history
- Proof of employment
- Reference letters from previous landlords and employers
- Three months’ worth of bank statements
- Letter from accountants (if you are self-employed)
- Details of the guarantor if required

Referencing benefits both landlords and tenants by promoting transparency, accountability, and trust in the rental relationship. It is a standard procedure in the rental process that serves several important purposes, such as; assessing suitability, mitigating risk for landlords, compliance and ensuring financial stability. By verifying your background and financial status, landlords can make informed decisions on who to rent to and minimise the risk of renting to tenants who may default on rent payments or cause damage to the property.

The landlord pays for the referencing

Credit checks help landlords decide whether or not to let their property to you. They look over your behaviour financially, without disclosing how much you actually earn. These checks include:
 
- How long have you lived at your current and previous addresses.
- Public recor,ds e.g. if you are on the electoral register.
- If you have any county court judgments (CCJs), bankruptcy orders or IVAs.

Credit checks usually take just a few hours; however, the full referencing process usually takes between 2 and 10 days.

While it's not a legal requirement, having tenant's contents insurance is highly recommended. Here's why:

Protection of Personal Belongings: Tenant's contents insurance covers your personal belongings against risks such as theft, fire, or damage caused by unforeseen events. Without insurance, you would be responsible for replacing your belongings in case of such incidents, which can be costly.
Additional Living Expenses: If your rented property becomes uninhabitable due to a covered peril, tenant's contents insurance may cover additional living expenses, such as temporary accommodation and meals, while repairs are being made.
Peace of Mind: Tenant's contents insurance provides peace of mind knowing that your personal belongings are protected against unexpected events. It can help alleviate financial stress in the event of a loss or liability claim.
 

When renting a property, you'll typically need to provide several documents to the landlord or letting agent as part of the application process. Here are the common documents you may need:

Proof of Identity – Valid government-issued photo identification, such as a passport or drivers license with an accompanied birth certificate. If you are from outside the UK, you will need to pass relevant right-to-rent checks before renting a property. All original documentation must be seen before keys are released.
Proof of residency – proof of current address, such as a utility bill, bank statement, or council tax bill.
Right to Rent Check – you will need to provide documentation to verify your right to rent in the UK, such as passport or residence permit.

All original documentation must be seen before keys are released.

Rent – the agreed monthly amount.
Refundable tenancy deposit – capped at 5 weeks’ rent (or 6 weeks if annual rent is over £50,000).
Refundable holding deposit – capped at 1 week’s rent, to reserve the property.
Default fees (if specified in the tenancy agreement):
Late rent payments (after 14 days, with capped interest).
Replacement of lost keys or security devices, charged at a reasonable cost.
Contract changes or renewals – capped at £50 (or higher if the landlord/agent can prove greater costs).
Early termination of tenancy – if requested by the tenant, costs must be reasonable and no more than the landlord’s actual loss.
Utilities, broadband, TV license, council tax – if specified in the tenancy agreement, tenants pay these directly.

As well as paying the rent, the ‘permitted payments’ depending on an individual tenancy or a company tenancy will be charged to tenants entering via Beresfords.

Unpaid rent – any outstanding rent owed at the end of the tenancy.
Unpaid utility bills or council tax – if these were the tenant’s responsibility and remain unpaid.
Cleaning costs – only if the property is not left in the same level of cleanliness as at the start of the tenancy (allowing for fair wear and tear).
Damage to the property – beyond normal wear and tear, e.g. broken furniture, holes in walls, burns or stains.
Missing items – if furniture, appliances, or other fixtures listed in the inventory are removed without agreement.
Unauthorised alterations – such as painting walls without consent.
Neglect of outdoor areas – if a garden or outside space is not maintained as agreed in the tenancy contract.

The landlord cannot charge a fee for cleaning. However, when the tenancy ends they can look to withhold all or some of the security deposit in order to return the property to the condition it was in when the tenancy began. 

It is natural that a property will show signs of use, and the landlord should not withhold your security deposit (or part of it) for fair wear and tear if you have provided reasonable care and maintenance. This includes things such as:

Faded curtains
Furniture indentations on carpets
Scuffed wooden floors
Loose hinges or door handles
Cracks in walls due to natural movement
Worn paint near light switches

By law, your landlord must:

1. Provide you with a copy of the ‘How to Rent’ checklist at the beginning of the tenancy.
2. Provide you with an EPC (Energy Performance Certificate) with a minimum rating of E.
3. Keep the property safe and free from health hazards.
4. Provide a valid gas safety certificate.
5. Register your deposit in a government approved scheme.
6. Check you have the right to rent.
7. Provide an Electrical Installation Condition Report (EICR).
8. Ensure there is a working smoke alarm on each level of the property.
9. Ensure there is a working CO alarm if where is a gas boiler and where there are any solid fuel burners.
10. Ensure any soft furnishings provided have the relevant fire protection labels.

As the tenant you must:

1. Pay your rent on time.
2. Look after the property by reporting any issues or repairs needed to the landlord.
3. Keep the property ventilated.
4. Carry out minor maintenance e.g. change light bulbs and check smoke alarms.
5. Dispose of rubbish correctly.
6. Allow access for inspections and repairs (the landlord must give you at least 24 hours’ notice and carry out inspections or repairs at a reasonable hour).
7. Ask for permission to make changes to the property, take in a lodger.
8. Follow agreed rules e.g. no smoking, no pets.
9. End your tenancy properly.

Deposit protection is a system designed to safeguard tenants' security deposits during a tenancy. It typically involves placing the deposit in a government-approved scheme or a designated third-party scheme. It helps ensure fairness and transparency in the handling of tenants' deposits, providing peace of mind for both landlords and tenants throughout the tenancy. It helps prevent disputes and protects tenants from unfair practices while also encouraging responsible tenancy behaviour.

Hopefully these FAQs have answered many of your questions about renting. You can ask more questions in your local branch, either by phone, in person or via email. Click here to find your local office contact information.