Moving Out For The First Time? Here’s How to Ensure You Pass the Reference Checks

If you’ve been getting a little tired with your current living situation for quite some time, you’re probably spending a lot of time browsing the internet via your laptop in search of the ideal flat, apartment or house in your desired location. Thankfully, most estate agency websites have been updated now, so they constantly show the best properties they have on offer. The search feature is also very good on sites like Rightmove and Zoopla, meaning you’re able to select an area, and then filter your results by any stipulations you may have. Even so, hunting for a property in today’s climate can be rather difficult, especially if you haven’t got a lot of money to spend. With that in mind, I’ll try to make your life easier throughout this post by explaining how to deal with, and ensure you pass the reference checks performed by estate agents. I’m sure you already know how much of a pain they can be.

Firstly, it’s important you understand why estate agencies and landlords perform these checks. You see, tenants have more rights than they probably should have these days, meaning that even if they fail to pay any rent after they relocate to a property, the owner isn’t entitled to throw them straight out on the street. Indeed, sometimes landlords have to go to court to obtain orders for troublesome tenants to be removed, but even then, this creates a significant expense that most don’t want or need. Reference checks were designed to help those with property to find out a little more about you before signing any contracts. So, you probably want to know how to pass, right?

Find Out Exactly What You Need:

Most reference checks are pretty similar, and so you’ll probably need the same documentation, regardless of which estate agency or landlord you’re dealing with. Incidentally, if you’re asked to provide anything you feel is unsuitable, do not be afraid to ask for their reasoning, as this could be a mistake.

Here are some of the basic things generally required…

• Employer Reference – Not every landlord will ask for this, but you should still get a letter of recommendation from your employer anyway, as this looks good and will only work in your favour. Don’t get me wrong, they don’t need to write a novel singing your praises; that would be a bit weird. Just a few sentences letting the landlord know how long you’ve worked for them and how you’re a “model” employee should do the trick.

• Previous Landlord Reference – This is one of the most important pieces of paperwork you’ll need to hand over, as your new landlord could well know your old one. Either way, providing a letter of recommendation from an established local landlord will vastly increase your chances of success.

• Bank Details – Having your bank details to hand will be beneficial at this stage as the estate agent may use them to run the reference checks.

• Address and Postcode – You’ll need to provide your full address and postcode for the last three years, as this is the main information used to run the credit check. If that means you need to hand over numerous address details then so beit. At the end of the day, so long as you’ve always paid your bills on time, and you’ve never been in arrears in the past, you shouldn’t encounter too many problems.

So, now you know about some of the documentation you’ll need to get ready for your real world or online tenant referencing, let’s take a look at what you can do it alter the outcome in your favour. Obviously, people with exceptionally bad credit will have trouble passing this check at all, but don’t worry too much if that applies to you. You’ll still be able to find a private landlord who’s willing to waive the checks if you have a decent deposit on hand.

How To Make Sure You Pass The Checks:

• Obtain A Copy Of Your Credit Report – You’ve probably all seen the adverts on TV for companies who provide credit reports for only a couple of pounds, so it’s a good idea to make yourself a member and take a look at your own. Again, don’t worry too much if the score is poor, as this can be improved in no time using some of the methods and techniques I’m about to relay.

• Get A Credit Card – If your credit score is low, it can be increased by agreeing to lending of some kind and then ensuring all money is paid back on time, or ahead of time. One of the best ways of doing this is to take out a credit card, use it once or twice, pay it off and then cut it up. Just don’t get tempted to spend too much on the card, otherwise you could negatively impact upon your desired outcome.

• Take A Bank Loan – For much the same reason taking a credit card out is a good idea, agreeing to a reasonable loan from your bank is also a wise move. Just ensure you read all the small print and fully understand the contract term, and interest rates. Only a fool would agree to lend cash without knowing how much they would be required to pay back in the long run.

• Purchase A Car On Finance – Whilst this won’t make a huge difference to your credit score (except if you fail to meet repayments), it could improve it just enough to pass a landlord or estate agent’s credit check. As this is part of the general reference checks everyone has to complete, it might be worth doing.

So my friends, you should now understand a little more about the type of things you can do to ensure you get the property of your dreams when it finally appears on the market. At the end of the day, so long as you don’t have debt collectors knocking at your door every day, you shouldn’t experience too many issues.

Good luck with your search!