Tenant References for HMO Landlords

Any landlord wants a smooth and hassle-free letting experience. One way of helping that happen is to undertake tenant references before a tenancy starts.

This is just as important in the case of HMO tenants. Once you’ve carried out tenancy references, you can move on to other aspects of the entire life-cycle of the tenancy, from initial inventory report to check-out reports with an end of tenancy app.

But first:

Why is an HMO Reference Important?

Your property is likely to be one of your biggest assets. That’s why you need to check if tenants have sufficient money to pay the rent and bills, have a good credit rating, and have genuine ID details. It’s also essential that your tenants are reliable and honest.
The risk of property damage and loss of income may be greater if you bypass this critical step.

What’s Included in an HMO Reference?

It is advisable that you carry out the following:

A Landlord check: details of the tenant’s previous landlord confirming if rent was paid on time and in full, as well as whether the property was left in good condition at the end of the tenancy. The previous landlord is likely to have conducted an inspection. If they’ve used an end of tenancy app, they may be amenable to sharing the report with you.

An income check: does your tenant earn enough to cover the rent? You need to see an income report that includes the following:

  • Earnings
  • Employment contract (and dates)
  • Employer reference
Tenant credit check: this will tell you all about the tenant’s prior addresses, Electoral Roll data, and entire credit history, including any bankruptcies or insolvencies, as well as County Court Judgements (CCJ) the tenant may have against their name.

Under government rules, you must also check if your tenant has the legal right to rent in the UK.

How to Carry Out Tenant References

You can either do it yourself or if you want to save time, appoint a professional tenant referencing company. In addition, you can opt for basic or more advanced checks. While this will incur a cost, it can be a game-changer for you if you discover a potential tenant has a poor credit history.

Using Reports2Go

Once you have successfully checked future tenant references, you can use our Android and iOS software for all your tenancy needs, including our end of tenancy app. Find out more today.

Gary, 24 March 2023
Tenant References for HMO Landlords

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