Credit checks — what they show
- CCJs: appear for 6 years — a CCJ for unpaid rent is a decisive red flag; others are contextual
- IVAs and bankruptcy: indicates serious historical financial difficulty — discharged record clears after 6 years
- Payment history on credit agreements: missed payments on multiple accounts indicate financial mismanagement
- Electoral roll registration at stated address: absence may indicate the address is recent or false
- GDPR: explicit written consent from the applicant required before running any credit check
Income and affordability verification
- 30x rule: gross annual income ≥ 30x monthly rent (2.5x annual rent). 36x for higher-risk cases
- Employed: last 3 payslips + employer letter (role, contract type, salary, start date) + P60
- Self-employed: last 2-3 years' SA302 + 3 months' bank statements + accountant's letter confirming income
- UC tenants: UC award notice confirms housing element amount — assess LHA shortfall against rent
- Joint applications: combined income for the threshold, but each applicant should individually meet ~15x monthly rent minimum
Previous landlord references
- Contact the previous landlord directly using independently verified contact details — prevents reference fraud
- Ask: duration, rent paid on time, property condition at checkout, outstanding arrears/dilapidations, reason for leaving, would re-let
- First-time renters: no landlord reference possible — rely on credit check, income verification, and guarantor
- Poor reference (persistent arrears, property damage): decline the application or require guarantor + max 5-week deposit
Right to rent — mandatory check
Mandatory before tenancy starts
Every adult aged 18+ who will occupy the property as their only or main home must have their right to rent verified before the tenancy begins. Non-compliance carries civil penalties up to £20,000 per illegal occupant.
- Online check (gov.uk share code): simplest method for most nationals — tenant provides share code, landlord verifies online
- Unlimited right to rent: British/Irish citizens and settled status holders — keep copy of document and date of check
- Time-limited right: follow-up check required at earlier of 12 months after initial check or expiry of leave — diarise immediately
- Non-compliance penalty: up to £20,000 per illegal occupant civil penalty; criminal offence where landlord knowingly continues tenancy
Guarantor referencing
- Required where: tenant income < 30x monthly rent; poor credit; student; first-time renter
- Guarantor income threshold: gross annual income ≥ 36x monthly rent (3x annual rent)
- Credit check the guarantor using the same criteria as the tenant
- Homeowner guarantors provide better security — verify via Land Registry
- Deed of guarantee must be signed as a deed, witnessed, and include: full rent liability, periodic tenancy continuation clause, prompt arrears notification