What Makes a Good Tenant? A Landlord’s Guide to Tenant Referencing

Why Careful Tenant Selection Can Help Protect Your Property and Support a Successful Tenancy

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Finding a tenant quickly is important. Finding the right tenant is more important.

For landlords, a successful tenancy is not simply about achieving the right monthly rent. Ideally, you want a tenant who can comfortably afford the property, looks after it, communicates appropriately and treats it as their home.

This is where professional tenant referencing becomes particularly important.

At Premier Property & Finance Centre, we have been letting and managing rental properties since 1996. Over those 30 years, the technology and processes involved in tenant referencing have changed considerably, but one principle has remained the same: taking care at the beginning of a tenancy can help prevent problems further down the line.

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What Is Tenant Referencing?

Tenant referencing is the process of carrying out appropriate checks on a prospective tenant before proceeding with a tenancy.

It helps a landlord build a clearer picture of an applicant’s circumstances and their ability to meet the financial commitments associated with renting the property.

Depending on the circumstances, referencing may consider areas such as identity, income and affordability, employment, credit history and previous renting history.

For properties in England, Right to Rent requirements are a separate legal consideration. Landlords or their agents must carry out the appropriate Right to Rent checks on prospective adult occupiers in accordance with the applicable rules.

Referencing should not be viewed as a guarantee that nothing will ever go wrong. Circumstances can change during any tenancy. Instead, it is an important part of making a properly informed decision before handing over the keys.

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Affordability Is About More Than the Monthly Rent

One of the most important considerations is whether the applicant can realistically afford the property.

A prospective tenant may be enthusiastic about a home, but the tenancy also needs to be financially sustainable.

Income and employment information can help establish whether the rent is appropriate in relation to the applicant’s circumstances. Where relevant, additional information or a guarantor may also form part of the overall assessment.

A responsible approach benefits both parties.

For landlords, it can reduce the risk of avoidable rent problems. For tenants, it helps avoid entering into a tenancy that may place them under unnecessary financial pressure.

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Credit and Previous Renting History

Where appropriate, credit information can provide another useful part of the overall picture.

However, good tenant selection should not necessarily be reduced to a single number or one piece of information.

Previous renting history can also be valuable. Where suitable references are available, understanding how an applicant conducted a previous tenancy may provide useful context.

Did they pay the rent reliably? Was the property looked after? Was there a positive relationship with the previous landlord or managing agent?

The aim is to consider the application as a whole rather than relying on one isolated factor.

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Communication Can Tell You a Lot

Not every useful indicator comes from a formal report.

The way a prospective tenant communicates during the enquiry, viewing and application process can also be informative.

Are requested documents supplied promptly? Are questions answered clearly? Do they communicate professionally when arranging appointments? Do the details provided remain consistent throughout the application?

None of these things should replace proper referencing, but good communication can contribute towards a smoother process from the initial enquiry through to the start of the tenancy.

It works both ways, too. Prospective tenants should receive clear communication from the letting agent and understand what information is required, what happens next and what is expected of them.

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Right to Rent Checks Are an Important Responsibility

For landlords letting property in England, Right to Rent checks are a legal requirement for prospective adult occupiers who fall within the scheme.

Checks should be carried out consistently and in accordance with the current requirements, rather than based on assumptions about somebody’s nationality or background.

Depending on an individual’s circumstances, there are different prescribed methods for carrying out the appropriate check.

For landlords, this is another example of why tenant selection is no longer simply a matter of meeting someone at a viewing, accepting a deposit and handing over the keys.

There are important processes that need to be completed correctly.

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A Good Tenant Is Also Looking for a Good Landlord

Tenant selection should not be viewed as a one-sided process.

Just as landlords want responsible tenants, good tenants are often looking for responsible landlords and professionally managed properties.

They want a home that is properly maintained, clear communication when something needs attention and confidence that their tenancy will be managed professionally.

This is why attracting good tenants starts before the referencing process.

A well-presented property, realistic asking rent, professional marketing and responsive communication can all influence the quality of enquiries a rental property receives.

The objective should not simply be to fill a vacancy as quickly as possible. It should be to create the foundations for a successful tenancy from the beginning.

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Why Rushing Tenant Selection Can Be a False Economy

A vacant property naturally costs a landlord money, so it is understandable to want a new tenancy to begin as quickly as possible.

However, speed should not come at the expense of appropriate checks.

Accepting the first applicant simply to avoid a short period without rent can prove considerably more expensive if problems subsequently arise.

Taking the time to market the property properly, handle enquiries professionally and carry out appropriate tenant referencing can be a worthwhile investment in the longer-term performance of the tenancy.

Good property management often begins before the tenant has even moved in.

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Local Knowledge Also Matters

Tenant demand can vary significantly depending on the property, location and rental value.

A one-bedroom flat in Walthamstow may attract a very different group of prospective tenants from a larger family house elsewhere in Waltham Forest.

Understanding the local rental market helps an experienced letting agent position the property appropriately, assess enquiries and manage the process from marketing through to move-in.

For landlords with rental property in Walthamstow and the surrounding East London area, local knowledge can therefore be just as valuable during tenant selection as it is when determining the asking rent.

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30 Years of Lettings and Property Management Experience

At Premier Property & Finance Centre, we have been helping landlords find tenants and manage rental properties since 1996.

Our approach has always been based on something relatively simple: a successful tenancy starts with getting the fundamentals right.

That means marketing the property properly, setting an appropriate rental value, communicating clearly with prospective tenants, carrying out appropriate checks and managing the tenancy professionally once the tenant moves in.

No referencing process can predict every change in a person’s future circumstances. But careful tenant selection gives landlords a stronger foundation from which to begin.

For landlords looking for a letting agent in Walthamstow, our tenant-find and fully managed property management services provide support throughout the letting process — from rental valuation and marketing through to tenant referencing, move-in and ongoing management.

After 30 years in the local lettings market, we still believe the same principle matters:

Finding a tenant is only the beginning. Finding the right tenant can make all the difference.

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