Securing a property to rent

Anyone over the age of 18 who wishes to rent a property in England, or live in the property with a tenant, must by law provide evidence of their Right to Rent before the tenancy can start. This is usually by means of a passport and visa documentation where relevant. If you cannot provide this, please ask us for a list of other acceptable documents.

It is important to note that proof of residency documentation must be dated in the last three months and the address must match your current address or as supplied on the reference application form.

• Current driving licence
• Recent bank or building society statements
• Council tax bill
• Utility bill
• Current TV licence
• Mortgage statement
• Homeowner's current insurance schedule
• Current tenancy agreement (signed within the last six months)
• Home service provider bill (for example broadband, digital TV statement)
• Homeowner’s insurance schedule
• Letter from employer confirming address (signed, dated and printed on headed paper)
• Correspondence relating to local housing allowance or benefit

Reference checks are carried out on prospective tenants to confirm that they have previously rented without any major issues and are in employment. Credit checks are carried to ensure that prospective tenants can afford the monthly rent and have no serious adverse credit history.

Clarify with the agent what criteria needs to be met and, if you are concerned that you might fail the checks, whether the landlord will agree to you having a guarantor.

If your tenancy is not going to be an AST, you will be asked to pay for the reference check.

This charge is usually non-refundable once the referencing process has begun. You will not be refunded if you fail the referencing process, so it is important to have all the relevant information required before undergoing the check. 

Financial background checks

• CIFAS (Credit Industry Fraud Avoidance System) check
• IP address matching
• Up to three years’ address history check
• List of CCJ and any other adverse credit history
• Voters’ roll check
• Undisclosed address check
• Tenancy application score and fraud score
• Bank details check (account and sort code verification)
• Referencing company’s default database check
• Financial sanctions check (terrorism)
• International Credit Bureau check

Income verification/employer’s reference

• How long have you been employed?
• Full time and permanent job
• Earnings – can you afford the rental amount, which is usually x2.5 the annual rent or x30 the monthly rent?
• Future employment reference if required
• Affordability check

Current landlord or managing agent reference

• Has the rent been paid on time?
• Has the tenant looked after the property?
• Would the landlord let to the tenant again in the future?

Circumstances when a reference company may suggest a guarantor may be needed (agreed at the landlord’s discretion).

A guarantor is someone who guarantees to also be bound by the terms of the tenancy agreement, including financial payments on your behalf – e.g. if you fall behind with your rental payments, your guarantor will be contacted for payment. If you think you might need a guarantor, you might want to ask a parent or close family member. The criteria for a guarantor is similar to that of a tenant. They will need to show proof of their identity but will not be checked under the Right to Rent requirements. The guarantor should permanently live in England and Wales. 

You may need a guarantor if:

• You have an Individual Voluntary Agreement (IVA) or a county court judgement (CCJ)
• You are a first-time renter
• You are a student
• You are unemployed
• You are self-employed
• You are coming from overseas and a full reference check cannot be carried out
• You cannot provide the required confirmation of earnings

When you have paid the holding deposit, referencing has been completed and you have secured the property subject to contract, the letting agent will draft the tenancy agreement. Once issued, read it carefully through and ask any questions you have before signing and returning it. You should always seek independent legal advice before signing the contract.

To find out more about deposits and tenancy agreements, read our guide on tenants’ rights and responsibilities.

You will be required to pay the initial funds before the tenancy starts, which includes the initial rental payment and the tenancy deposit. All deposits for Assured Shorthold Tenancies (AST) in England and Wales must be protected by one of the government approved tenancy deposit protection schemes. There are three approved schemes offering both an insured or custodial service. At KFH we use the Tenancy Deposit Insured Scheme (TDS), operated by The Dispute Service when we are instructed by the landlord to hold the deposit as stakeholders for the tenancy. Some landlords choose to protect the deposit themselves, in which case we will not hold the deposit or become involved in its protection.