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Comprehensive tenant referencing has always been key when it comes to selecting the right person for your property – and it’s set to become more important than ever when the new Renters’ Rights Act comes into force.
The loss of Section 21 – the so-called ‘no fault’ eviction, means it will be harder to repossess your property if something goes wrong once the Act is in force.
Tenants will also be able to build up greater levels arrears before you can take action under the alternative Section 8 grounds-based process.
Under the new rules, tenants will be able to withhold rent for up to three months before you can apply for repossession – up from two months under the current regime.
And with every possession claim now needing a court hearing, even once you hit that threshold, it could be months before the case progresses, with current waiting times from serving notice to possession already six months – and that’s before the new rules come in.
It’s also important to remember that rent guarantee insurance policies will require a robust set of checks for your policy to be valid.
Against this backdrop, it is clear that a basic credit check is not going to be sufficient to establish whether a potential tenant is reliable - and can afford to rent your property on an ongoing basis.
Reviewing your tenant referencing processes has been a key element of NRLA advice when it comes to preparing for the changes up ahead, and we are advising landlords to check:
This is a decision that is personal to you. You can carry out the checks yourself or employ someone to carry them out for you.
That is where the NRLA comes in.
Through our partnership with Goodlord, we offer comprehensive tenant references, which include all of the checks mentioned above and more.
Goodlord’s anti-fraud technology streamlines the referencing process, enabling most checks to be completed within 24 hours. By pulling verified data directly from trusted sources, including banks, payroll systems, and HMRC, it reduces risk and eliminates the need for tenants to submit documents themselves.
All of this helps ensure you place high-quality tenants in your properties, minimising the risk of eviction.
Pricing for tenant checks and credit checks available through the NRLA are as follows:
| Product | Price (inc. VAT) |
|---|---|
| Full Tenant / Guarantor Reference (member) | £21.60 |
| Full Tenant / Guarantor Reference (non-member) | £38.40 |
| Priority Tenant / Guarantor Reference (member) | £36.00 |
| Priority Tenant / Guarantor Reference (non-member) | £50.40 |
| Company Reference (member) | £48.00 |
| Company Reference (non-member) | £60.00 |
| ID Upgrade Bolt-on (member) | £7.20 |
| ID Upgrade Bolt-on (non-member) | £19.20 |
*ID Upgrade Bolt-On includes a digital Right to Rent check however please note this is only applicable to UK or Irish passport holders
| Number of addresses | 1 address | 2 addresses | 3 addresses |
|---|---|---|---|
| Price | £12 | £13 | £14 |