RESIDENTIALlettings
Ask the expert...
How can we reference a tenant from outside the UK? John Boyle, MD, HomeLet, responds.
Q What are the difficulties faced when referencing a tenant coming from overseas?
A Referencing tenants who haven’t been in the UK for long can be difficult. Many overseas tenants don’t have an address history to generate a valid credit score and our standard credit reference requires the tenant to have at least six months of UK address history. In these circumstances many letting agents will ask for a UK based guarantor, but in many cases tenants coming from overseas simply don’t have one, as a guarantor would need to be from the UK, and as you can imagine, pursuing someone who is based overseas for the outstanding rent could prove difficult.
Q Can tenants coming from overseas be referenced?
A There are several international referencing products available to agents and landlords, designed specifically for tenants who’ve been in the UK less than six months. But, it’s important to remember that if they’ve been living in the UK for over six months they can be referenced like any other tenant. At HomeLet we offer products especially for international applicants, which combine a reference with Rent Guarantee insurance for added peace of mind.
Q What checks are carried out?
A There are several checks that we carry out and certain criteria. We ask that the applicant has a UK bank account. As several major banks now offer accounts to people who have been in the UK for less than six months, we’re able to use this verification. We also require the applicant’s passport number and confirm that they’re employed. We obtain a full employment reference including income to confirm affordability of the rent (as for any reference). We offer a combined product so if the applicant passes referencing checks the agent is automatically covered by Rent Guarantee.
Q Is Rent Guarantee vital for international tenants?
A I’d have to say that it’s important for any tenancy. In normal circumstances we’d obtain a reference from a previous landlord and cross reference the applicant’s data with our claims list, along with gaining a full picture of the applicant’s credit worthiness from the UK credit register. This isn’t possible for tenants who’ve not previously lived in the UK, that’s why we only offer a combined Rent Guarantee product. We’ve seen many instances were a tenant has defaulted after two
months and it’s taken the rest of the tenancy term to evict them. If the rent was £600pcm, the landlord could lose thousands – which could be covered by a product costing from as little as £75. Referencing is a snapshot in time and no-one can predict the
future. If a tenant does default, the strain on the relationship between letting agent and landlord is severely tested, if they’re covered by Rent Guarantee insurance policy, the rent, legal
proceedings and legal costs are all covered.
For more information, visit www.homelet.co.uk
PROPERTYdrum MARCH 2010 53
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