Tenants Guide To Getting Referencing Approved

Home | Tenants Guide To Getting Referencing Approved

We’ve put together everything you need to know about renting with us into this comprehensive guide – to make sure you get approved for the property you want and ensure your tenancy is stress-free.

Your reservation has now been accepted, now all we need to do is get your reference approved and all you have to do is pass the reference checks. We know that referencing can be a stressful time, so we have put together some tips to help you make sure the process goes as smoothly (and as quickly) as possible.

Why Do I Need A Reference Check?

Reference checks are an important step for your landlord to ensure that you are a suitable tenant for their property. For the majority of landlords, rental property is a significant investment, and in some cases has been their home; referencing provides reassurance that you can afford the rental payments and will look after the property.

At Luxury Hub we reference check all adults who will be living in a property. Once your application has been approved by the landlord, you will be sent a reference form to complete. Our reference checks are carried out by a third-party company and include:

  • Credit check
  • Bank validation check
  • Background search
  • Financial check
  • Current landlord reference
  • Employment check
  • Affordability calculation

What Can Tenants Do To Help With Referencing?

Reference checks tend to take only a few days, but we know it can feel longer when you are waiting to hear if your application has been successful. There are a few steps that tenants can take to help the process along:

Check Your Affordability

The first step when looking to rent a property is to work out what you can afford to spend on rent each month, this will help to guide your search. The affordability check, included in the reference check, ensures that your income will sufficiently cover the rent payments. To pass the affordability check, your gross combined annual household income must be more than 3 times the monthly rental amount. For example, to rent a property at £500 per month, your household income must be at least £1500.00 per year. If you are concerned that your income will not meet the affordability criteria, speak to us, it may be possible to support your application with a UK based guarantor.

Read our budget planner download for first-time tenants.

Be Completely Honest

It can be tempting to withhold some information – such as adverse credit – when applying for a rental property. However, this will be checked during the referencing process, so it is better to disclose everything upfront, giving time to find a solution. Poor credit history does not automatically mean that your application will be declined, but trying to cover it up may not reflect well on you.

Have A Guarantor

If you are unsure if you will pass reference checks on your own – perhaps due to recently changing job, being self-employed or having lived abroad – it is best to find a guarantor in advance, so as not to delay the referencing process. A guarantor is usually a parent or guardian but can be anyone living in the UK who is willing to agree to take on the responsibility for paying your rent, or for damage to the property, should you fail to do so. Your guarantor will be referenced in the same way as you, so will be required to undergo a credit check and provide an employment reference. Let your guarantor know in advance so they can have the required information ready.

Pre-Warn Your Referees

Make sure you, your employers and your guarantors are available. In order to rent a property, you will typically require a reference from your employer and, where possible, a previous landlord. Waiting for a response from referees can cause some of the biggest delays with reference checks. It is always a good idea to contact your referees in advance so they know that their input will be required and an alternative can be arranged if they are not available. It may seem obvious, but so often we lose time trying to get hold of prospective tenants, their employers or their guarantors because of reasons which could have easily been avoided, if your employer is going to be away for a few weeks, perhaps provide an alternative contact with whom we can speak. 

5. Have Your Paperwork Ready

You will most likely be asked to provide some (or all) of the below documents to support your reference application. As you may not usually have all of these immediately to hand, it is helpful to have your paperwork ready at the beginning of the process to avoid delays.

  • Bank account details or bank statement
  • Passport (and any relevant visas to prove your right to live in the UK)
  • Copy of employment contract
  • Proof of current address – driving licence or utility bill

If things go wrong you need to know you’ll be looked after. At Luxury Hub we only work with landlords who are fully vetted and commit to providing quality, safe and well-maintained accommodation for their tenants. Because every tenant deserves to feel happy and safe in their home.

Your application is successful? – get ready for the move

Once we’ve finished the referencing process your application will show as ‘Complete’ online. This means that the information has been sent back to your landlord.

It’s important to remember that we may carry out some additional checks after we’ve returned your reference, so just because your references are showing as ‘Complete’, this doesn’t mean that you have got the property.

When you do have the confirmation that your application is successful, it’s time to start planning for the move!

Renting with Luxury Hub

At Luxury Hub, we can help you find the perfect place to live with our perfect mix of luxury, amenities & technology, reasonable prices, and expert local knowledge. We’re up to date on all the latest legislation, too. See our other articles and downloads on our website.