Before agreeing to let their properties, landlords should ask for sight of documents confirming prospective tenants’ identity.

Generally two or more of the following should be examined:

• a passport or driving licence (with picture),
• bank statement,
• utility,
• tax or similar bill showing current address,
• a wage slip bearing the name of the employer, the prospective tenant, and the NI number that has been declared on the application form.

A note should be taken of relevant identification and account numbers.

A credit check should also be undertaken. As these will cost the landlord something (although not a great deal) they can usually be put off until the most likely prospective tenant has been identified. There are a number of suppliers who can be found with a simple Internet search – such major players in the market as Experian, or more specialist companies such as Credit Check Services (which will also undertake tenant referencing). Different levels of report are typically offered, with higher level (and more expensive) reports offering more information.

Checks can:

• pick up county court judgments against tenants,
• report details of any bankruptcies,
• confirm if the tenant is entered onto the electoral roll at the previous address and for how long he or she has been registered at that address,
• provide a credit rating.

Tenants should be asked to explain any discrepancies between the credit check information and their application form answers.

Landlords should also take up references. These need to be treated with care, however, since some referees will feel constrained by personal relationship, fear of making themselves liable in some way, or even by ulterior motives – a current landlord who is keen to get rid of a tenant may steer clear of giving a bad reference, even if justified. And in any case, a prospective tenant is unlikely to give the name of somebody he or she knows will give a bad reference.

Banks will be very restrained in their answers and will generally only confirm, without liability, that the person named in the request for a reference holds an account with the bank and that the account number, sort code and address are in accordance with its records.
Requests to individuals named as referees can ask them to explain how they know the prospective tenant and for how long they have done so; as well as whether, in their opinion, the person would make a trustworthy, reliable and responsible tenant who will honour his or her tenancy responsibilities.

Again, the prospective tenants should be asked to explain any apparent discrepancies between the statements of referees and the answers given in the application forms. 
If concerned about the financial standing of prospective tenants, landlords can request a guarantor. This is somebody who contracts themselves to stand in the place of the tenant should he or she default on payment. Guarantors can be pursued for payment in the same way as tenants. However, before accepting a guarantor, landlords should satisfy themselves of the identity and financial standing of the guarantor, just as they would a tenant – by a credit check and sight of documents confirming identity in the same way.

Landlords should also be aware that the value of a guarantor who lives overseas is very limited since it will be difficult to pursue an overseas resident, even an EU resident, through the courts.