Finding the right tenant is one of the most important decisions a landlord can make. A good tenant can provide reliable rent, look after the property and help avoid unnecessary stress. The wrong tenant, however, can lead to unpaid rent, property damage, legal disputes or difficulties regaining possession.
That is why many landlords choose to carry out tenant background checks before handing over the keys. These checks can help confirm whether a prospective tenant is who they say they are, whether they are likely to pay rent reliably, and whether the information they have provided is accurate.
However, landlords must be careful. Tenant checks need to be lawful, fair and proportionate. You cannot simply investigate every detail of someone’s private life because they have applied to rent a property.
What Can Landlords Legally Check?
Landlords can usually check information that is relevant to the tenancy. This may include identity, right to rent, affordability, rental history, references and certain financial indicators. The key is that the check should have a clear purpose connected to the tenancy.
For example, it is reasonable to want to know whether a tenant can afford the rent, has given accurate personal details and has a lawful right to rent in England. It is much harder to justify intrusive checks that have no clear link to the tenancy.
Right To Rent Checks
In England, landlords must check that a tenant has the right to rent before the tenancy starts. GOV.UK guidance explains that landlords, letting agents and homeowners can use right to rent checks when letting private rented accommodation.
Some tenants can prove their right to rent using a Home Office share code. GOV.UK states that landlords, agents and some subletting tenants can use the online checking service to check a tenant’s right to rent in England.
Landlords must also avoid discrimination. GOV.UK guidance for tenants says landlords must let tenants try to prove their right to rent and must not discriminate, for example because of nationality.
Identity Checks
A landlord can usually ask for evidence that confirms a tenant’s identity. This may include a passport, driving licence or other appropriate documents. Identity checks help confirm that the person applying is the person who will be entering into the tenancy agreement.
This can be important where there are concerns about false names, inconsistent details or someone applying on behalf of another person.
Employment And Income Checks
Landlords commonly check whether a tenant can afford the rent. This may involve asking for employment details, payslips, bank statements, accountant letters or evidence of other income.
These checks should be handled carefully because they involve personal and financial information. Landlords should only ask for information they genuinely need and should store it securely.
Rental History And References
Landlords may ask for references from previous landlords, letting agents or employers. These can help confirm whether a tenant has previously paid rent on time, looked after a property and complied with tenancy terms.
A reference is not always conclusive. Some previous landlords may give limited information, and some references may need verification. If something seems inconsistent, it may be worth carrying out further checks before agreeing to the tenancy.
Credit Checks, CCJs And Financial Reliability
Credit checks can help landlords understand whether a tenant has financial issues that may affect their ability to pay rent. This may include checking for County Court Judgments, insolvency records or other relevant financial indicators.
The Information Commissioner’s Office gives examples of real estate sector processing that include using personal information to perform credit checks on prospective tenants or obtain references.
This does not mean landlords can collect unlimited financial information. Any financial checks should be relevant, proportionate and handled in line with data protection requirements.
Can Landlords Charge Tenants For Referencing?
In England, landlords and letting agents generally cannot charge tenants for referencing as a separate fee. The Tenant Fees Act 2019 banned most letting fees and capped tenancy deposits in the private rented sector.
Government tenant guidance also states that a landlord or agent cannot ask a tenant or future landlord to pay for a reference in relation to a tenancy.
This is important because a landlord may be able to carry out checks, but they need to be careful about who pays for them and how the process is explained to the applicant.
Data Protection And Tenant Checks
Tenant background checks involve personal data, so landlords need to think about data protection. The ICO says organisations must identify at least one lawful basis before sharing personal data and must be able to show this was considered.
In practical terms, landlords should be clear about what information they are collecting, why they need it, how it will be used, who it may be shared with and how long it will be kept.
Landlords should avoid collecting excessive information “just in case”. If a check is not relevant to the tenancy, it is unlikely to be appropriate.
What Should Landlords Be Careful About?
Landlords should avoid checks that are discriminatory, excessive or unrelated to the tenancy. They should also avoid relying on rumours, unverified information or irrelevant personal details.
For example, it may be reasonable to check affordability, rental history and identity. It would not usually be appropriate to investigate someone’s private relationships, political views, health history or personal lifestyle unless there is a very specific and lawful reason connected to the tenancy.
Landlords should also be careful when using social media. Public information may sometimes be relevant, but social media checks can quickly become intrusive or misleading.
When Might A Professional Background Check Help?
A professional tenant background check may be useful where:
- A tenant’s details do not appear to match
- References are vague or difficult to verify
- There are concerns about false employment information
- The tenant is applying under time pressure
- The landlord has previously had problems with unpaid rent or damage
- The property is high value or the tenancy carries particular risk
- There are concerns about someone using another person’s identity
A private investigator cannot guarantee that a tenancy will go smoothly, but professional checks can help identify inconsistencies before a landlord commits.
How B25 Private Investigation Can Help With Background Checks
B25 Private Investigation provides discreet background checks for landlords, property owners and private clients across the UK.
Our investigators can help verify key information, review inconsistencies and provide a clearer picture before you enter into a tenancy agreement. Depending on the circumstances, this may include checks around identity, address history, financial indicators, references, employment details and other relevant information.
Every case is handled lawfully, ethically and with complete confidentiality.
Speak To B25 In Confidence
If you are a landlord and need to verify a prospective tenant’s background, B25 Private Investigation can help.
Our experienced team can discuss your concerns, explain what checks may be possible and provide discreet support before you hand over the keys. Contact B25 Private Investigation today for a confidential consultation.