Why Landlords Run Background Checks on Tenants

August 15, 2021 - Reading time: 6 minutes

Deciding to lease out your property, whilst being a logical and profitable endeavour in most cases, can expose landlords to a range of different risks which most people may not ever consider.

We have all seen the horror stories in newspapers and television programs, where tenants will decide to damage a property or forego paying rent for several months before they are evicted. These situations can cause landlords to lose significant amounts of money in repair bills, lost rent and legal bills, not to mention the stress and mental toll which can ensue as a result. 

In many cases, situations involving undesirable tenants can be avoided by conducting suitable background checks before a lease is signed. Indeed, we have completed checks on numerous individuals who turned out not to be suitable tenants, for a variety of reasons.

Running a background check before deciding to hand over keys to a tenant can help to provide landlords with reassurance and peace of mind.

Are UK landlords obliged to conduct background checks?

Yes, under the Right to Rent checks which were introduced in 2016, landlords are now obliged to perform basic checks on their tenants or lodgers. The Right to Rent checks entail verifying that any tenants (whether or not they are named on the lease) are legally entitled to reside in the UK, and to retain copies of their identity documents as proof.

While all landlords are obliged to perform the Right to Rent checks, it is highly advisable to include additional checks in order to verify that your tenants are desirable and of good character. Additional checks on your tenants can help to safeguard your property and to help avoid making costly mistakes. 

Should I run a background check on my tenant?

We believe that all landlords should protect themselves by conducting suitable checks before allowing a tenant or lodger to live in their properties.

Rouge tenants, who habitually refuse to pay rent before leaving at the end of a costly eviction process, know exactly how to make themselves appear legitimate and how to dupe landlords. Fake references are common, with nefarious tenants supplying glowing reports written by themselves and accompanied by contact details for their friends or relatives, who will falsely claim to be previous landlords.

Often is the case that a rouge tenant can be detected before they have signed a lease if suitable checks are conducted before agreements are made. The eviction process can prove very costly and drawn out; for this reason, we recommend performing due diligence beforehand in order to avoid letting the wrong person lease your property. 

Should my letting agent run background checks on tenants?

Letting agents will typically conduct basic background checks on prospective tenants, with varying levels of thoroughness. In the past we have conducted background checks on potential tenants in addition to checks completed by letting agents.

If you have previously leased a property which was damaged by an undesirable tenant, or had to chase a tenant for unpaid rent, then you may be more likely to conduct more in-depth checks before leasing your property to new people. We can help by looking deeper into a subject’s circumstances and finding out if they are a good fit.

What are the risks involved with not running a background check?

Letting agents will typically perform basic checks such as verifying the income and credit score of potential tenants. However, these checks do not always cover all bases. Let’s assume for example that your tenant is currently attending magistrates or crown court, faced with serious criminal allegations. 

If your tenant is sent to prison for any length of time, will they continue to pay rent? What about if your tenant has been previously convicted for serious crimes (especially those of a sexual nature, or involving children)? Leasing to a tenant with this type of background may result in your property being vandalized, or even losing some of its value should you later decide to sell up.

If your prospective tenant is subject to ongoing litigation, or has recently been prosecuted for a serious crime, then you may consider whether leasing your property to them would be a wise decision.

Basic checks which are typically conducted by letting agents or private landlords, such as checking an individual’s credit score or references, are not usually as thorough as the checks which are provided by us. If you feel that you could benefit from an extra layer of protection through a more complete background check, then we can help. 

How to proceed

We firmly believe that running background checks on prospective tenants can help to mitigate risk when deciding to lease out a property. We have completed hundreds of checks on behalf of landlords based across all areas of the UK.

If you would like to run a background check on a prospective tenant, then we will require some basic information, such as the subject’s full name, date of birth and any previous addresses they are known to have resided at. If you hold other information relating to your prospective tenant, then please include these details with your inquiry. A copy of the subject’s identity documents, for example, would likely benefit our inquiries.

Please visit our homepage for more information about us, or feel free to contact one of our experienced team members for help and advice.