Tenant Referencing – SHARED

This template was created by JADE Success Ltd. as part of the Rent to Rent Academy and is for informational purposes only. You are responsible for ensuring that you have followed and included any necessary legal requirements for your business and you are responsible for managing and caring for your properties and tenants. 

If you haven't already we recommend you check out our step by step guidance on how to fully integrate and use this checklist with your properties ---> https://www.renttorentacademy.co.uk/store/7aDd6PBh 

This template was created by JADE Success Ltd. as part of the Rent to Rent Academy and is for informational purposes only. You are responsible for ensuring that you have followed and included any necessary legal requirements for your business and you are responsible for managing and caring for your properties and tenants. 

If you haven't already we recommend you check out our step by step guidance on how to fully integrate and use this checklist with your properties ---> https://www.renttorentacademy.co.uk/store/7aDd6PBh 

If the following aren't done within 24 hours - remind the tenant daily.

The room MUST be put back on the market if the information is not complete within 3 days.

ACTION

This step marks the beginning of the referencing process and is notification that a room has been reserved.  

**This will depend on your system for allowing tenants to reserve rooms. We recommend using an online payment processor such as PayPal (which is used as the example in this process) that will notify you electronically when a sale is made**

INFORMATION

Receive email from PayPal that a tenant has made a payment to reserve a room.

This email will show:

• The potential tenants NAME, Email Address and Phone Number
• What day they reserved and paid the admin fee for the room
• Which room they have reserved

ACTION

Contact the Lettings Manager to ensure a viewing was performed.

Alternatively check the diary booking system for viewings scheduled to ensure this tenant has done a viewing.

ACTION

If the tenant has done a viewing proceed to the next step.

        - OR - 

If the tenant has not done a viewing call or text the Letting Manager to confirm if she has met them or spoken to them as she may not have recorded it in Setmore.

If the tenant really hasn't done a viewing CALL THEM IMMEDIATELY!  They must either meet a member of the team or have a phone conversation about what they are looking for and how they found us.  Understand why they didn't do a viewing.  THIS INTERVIEW IS VERY IMPORTANT as we must speak to all of our tenants before they move in.

ACTION

Check Podio References Tab to see if the tenant has filled out the form as per the information below.

ACTION

If the tenant has filled out the information move to the next step

         - OR - 

If the tenant has not completed their information within 24 hours you must do the following:

1. Call the tenant (their phone number is in the notification email).  Tell them that you have received their admin payment but haven't yet received their application information and ask if they are having any problems or when they are going to fill it out.
2. AND - Email the tenant with the following email (their email address is in the notification email).  Ensure you update the information in CAPS.

_______________________________

Dear TENANT NAME:

We have received your payment of £200 to reserve ROOM # AT HOUSE NAME.  We look forward to welcoming you in one of our homes!

We have noticed that you have not filled out the application information.  This is required to be filled out as soon as possible and if we have not been able to complete the referencing within 3 business days from your initial reservation we will open up the room again and start showing other people.  You can fill out the referencing information on the following page:

LINK TO YOUR TENANT APPLICATION FORM

If you have any problems or questions please contact XXXXXX on ########### or via email at [email protected].

Kind Regards
YOUR NAME

INFORMATION

When the tenant has reserved the room and paid the £200 application fee they will automatically be redirected to the application website:XXXXXXXXXX

The information filled out in the form will automatically populate in the references tab in Podio.  You will also receive messages from Signable when they have signed the discosure form.

This is the first question that the tenant fills out on the application form.  

**Move in date should be on the day the room becomes available.**

If the tenant is not moving in / paying rent from the day the previous tenant moves out approval much be obtained from XXXXXX.

NOTE: 

If the tenant wants to move in within the next 5 days please warn them that we need to do referencing and that this can take up to a week depending on the response from their employer and previous landlord.  

Watch the Letting Ref User Videos Here:

• https://www.lettingref.co.uk/support/starting-a-new-tenant-reference

The main video is in the center and there is a menu for additional videos along the right-hand side of the page.

If you are unsure how to use Letting Ref please watch the videos included in the Heading of this section!

-Starting a new tenant reference: https://www.lettingref.co.uk/support/starting-a-new-tenant-reference

ACTION

Login to LettingRef:

• https://www.lettingref.co.uk/
• User Name: XXXXXXX
• Password: XXXXXXXX

Fill out a Letting Ref form for the tenant (or each tenant in case of a couple).  

Click Start Reference (from the homepage).

ACTION

Fill in the property and tenant details from Podio.

Ensure the following:

• Complete the rent on a monthly basis.
• The Lease End date should always be at the end of the month, unless it is a short term contract (less than 6 months).
• Select Reference Method should be Complete Tenant Details Yourself

ACTION

When you select Complete Tenant Details Yourself additional information boxes will appear at the bottom of the form (see following picture).  

Fill in the Required information based on what the tenant has filled out in Podio:

• Employment (this should normally be employed - even if they are students they will need to be employed at least part-time and we must contact their employer).
• Annual Income
• Gender
• Date of Birth
• Permission - if they have completed the Signable Tenant Referencing Consent Document (this is part of the application process for the tenant and you will receive a notification from Signable).  
  • If you have not received this notification you MUST call the tenant and ask them to complete it before going any further! This gives us permission to complete the referencing.

Once this is complete select save (you can change this information later if necessary).

INFORMATION

Next steps for Letting Ref are in the following items.

If you are unsure how to use Letting Ref please watch the videos included in the Heading of this section!

- Completing the address history: https://www.lettingref.co.uk/support/adding-a-tenants-address-history

ACTION

Fill in the Address history with the previous addresses the tenant provided in Podio. 

**All tenants must have 3 years of address history**

If you are unsure how to use Letting Ref please watch the videos included in the Heading of this section!

- Carrying Out an Employer Reference: https://www.lettingref.co.uk/support/carrying-out-an-employer-reference

ACTION

Using the information from Podio complete the employer information in Letting Ref.

**The tenant must have an employer.  If there is no employer the tenant must be approved by XXXXX and all rent will be due upfront for 6 months + 6 weeks deposit**

**If the tenant is a student they must still provide their employer as we expect all tenants to be working**

ACTION

Cal the employer and follow the employer Survey Questions.  The questions will change depending on the answers to ensure you know all questions before starting.  Follow Up 2x per day until references are received.

**If you are unable to reach the employer via phone also send the automated email**  

If you are unsure how to use Letting Ref please watch the videos included in the Heading of this section!

- Carrying Out a Landlord Reference: https://www.lettingref.co.uk/support/carrying-out-a-landlord-reference

ACTION

Complete the Prev. Landlord / Agent Section with the information the tenant provided in Podio.

**If the tenant has not completed this please confirm why.  They may have been living at home or with friends.  If this is the case please ensure no other addresses are present during the credit check**

ACTION

Cal the landlord / agent and follow the Survey Questions.  The questions will change depending on the answers to ensure you know all questions before starting.  Follow Up 2x per day until references are received.

**If you are unable to reach the landlord/agent via phone also send the automated email**  

If you are unsure how to use Letting Ref please watch the videos included in the Heading of this section!

- Referencing a Guarantor: https://www.lettingref.co.uk/support/referencing-a-guarantor

ACTION

Complete the guarantor details as provided in Podio.

**Some tenants may not need guarantors. This is generally only necessary if they are unable to pass the referencing on their own.**

ACTION

Permissions - All boxes must be ticked.  ENSURE that you have received the guarantor consent form signed off in Signable before completing the guarantor information. See more information under the Guarantor Section of this checklist.

If you are unsure how to use Letting Ref please watch the videos included in the Heading of this section!

 - Carry out a credit check: https://www.lettingref.co.uk/support/carry-out-a-credit-check

ACTION

If the tenant has been living in the UK for at least 12 months then do the Credit Check.

**IF the tenant has been in the UK less than 12 months a credit check is not necessary.  This is based on the address history**

ACTION

Ensure the tenant has a risk score of moderate or above.

ACTION

Review for any undisclosed addresses and query the tenant about why they were not included in their application. Include notes in the Podio Tenancy Page

ACTION

Ensure there are no CCJs or Bankruptcies

Enter the tenant's detail into the Tenancies Tab in Podio to create a record of their up-coming tenancy.

Scan through to ensure there are no unusual transactions or significant negative balances.

National Insurance Number is extremely important for any non-paying tenants in order for us to be able to collect any outstanding debt in the future.

INFORMATION

If the tenant is from outside the European Union (EU).  We must check their right to work in the UK. 

**READ INFORMATION HERE: https://www.gov.uk/check-tenant-right-to-rent-documents**

WE MUST SEE ORIGINAL DOCUMENTS UPON TENANT CHECK IN!!!

ACTION

Check the Tenants Passport and determine if they are from outside the EU.  

IF They are from within the EU this step is complete.

IF They are from outside the EU continue with the following.

ACTION (If from outside the EU)

Obtain the copies of the tenants passport, any visa or entitlement to work pages, any biometric resident permits, any other work visa or letters or government documents showing the tenants right to live in the UK.  Make copies as follows:

• for passports, copy every page with the expiry date or applicant’s details (eg nationality, date of birth and photograph), including endorsements, eg a work visa or Certificate of Entitlement to the right of abode in the UK
• copy both sides of biometric residence permits
• make a complete copy of all other documents
• record the date you made the copy

Ensure you note down any expiry dates and include this date in Podio.

ACTION

Complete the information on the following website: https://www.gov.uk/landlord-immigration-check

Save all results and print as a pdf and save in the tenants file.

From Letting Ref - see guidance in previous steps

From Letting Ref - see guidance in previous steps

From Letting Ref - see guidance in previous steps

The tenant needs a guarantor if they cannot pass referencing on their own.

Use Letting Ref to process Guarantors Reference's following the instructions in the following video:

https://www.lettingref.co.uk/support/referencing-a-guarantor 

Follow the same process as for the tenant.

ACTION:

Save the attached letter in Signable and send to the guarantor PRIOR TO sending the contract to the tenant.

This must be done before you send the tenant the AST contract.

Using Signable send the AST agreement to the tenant for signing.

Once you have all the referencing information and have sent the AST agreement please send the following email to the tenant.

___________________________________

Dear TENANT NAME,

Thank you for providing all of the referencing information.  We are happy to say that the references have come back with no issues.  Therefore we are ready to proceed to the next steps and get you ready to move in.

You will shortly receive an email from Signable with the tenancy agreement.  Please read it through carefully and let us know if you have any questions.  Please sign electronically following the instructions online when you are happy with the contract

Then we will set up the rental and deposit payments. 

To pay the deposit of £XXXX please use the following account:

Account Holder: YOUR COMPANY NAME
Account Number: XXXXXXXXX
Sort Code: XX XX XX
Bank: BANK NAME

Then we will set up the rental payments. 

We will need the first rent payment of £XXX for the month of XXXXXXX. We normally take rent from the 1st of each month.  We will take the first month in advance and then setup a direct debit. The rent can be paid into the following account:

Account Holder: YOUR COMPANY NAME
Account Number: XXXXXXXXX
Sort Code: XX XX XX
Bank: BANK NAME

Finally - the following link will take you to our website with GoCardless where you can enter your details to register for direct debit: 

YOUR GOCARDLESS LINK

This will allow us to collect rent from 1 MONTH via direct debit from the bank account of your choice. Normally GoCardless will take the money from your account on the 27th as it takes the banks a number of days to talk to each other and move the money across to our account and arrive on the 1st.

You will receive confirmation of this and be able to see all the transactions on the GoCardless site when you sign up.  You will also be able to manage and cancel the payment at any time via the website.

All payments must be received within the next 3 business days.  Please let me know when you have sent the first payment and I'll check the bank account to make sure they have been received.  Again, if you have any issues please contact me otherwise if we have not received payment within 3 days we will readvertise the room and you will not receive a refund.

Let me know if you have any questions or problems.  You can either reach me via email or my mobile which is XXXXXXXXXXX.

Kind Regards,

Check the bank account to see when the tenant has paid both the deposit and first month's rent.

Once the tenant has signed up for GoCardless please setup their monthly payment.  Watch the video below for instructions.

https://gocardless.com/how-to#adding-customers