Note that housing law in Wales has changed with effect from 1 December 2022. Find out more on our New Wales PageNote that all or some the law discussed here is due to change when the Renters Rights Act comes into force. The date for this is currently unknown. This note will be amended when we know more. See also our Renters Rights Act Information page.
Tessa’s Top Ten Tips on Signing up New Tenants
- Get as much information as you can from prospective tenants. It’s best to have a standard form such as our Tenants Information Form. You should also check their identity, and you will need (in England) to do a ‘right to rent’ check.
- Take references and follow them up. However, these can be forged so double check them. You can also do online searches against applicants’ names and any referees. You should also get a report from a credit reference agency and ask for copies of applicants’ last three months’ bank statements.
- Remember that references may not tell the whole truth, so do not be afraid to trust your ‘gut feeling’. If you feel uneasy about someone, think twice before letting them into your property.
- Be on youe guard against fraud and fraudulent documents which are on the increase. Consider using a credit reference company which provides a fraud checking service.
- Do not take more than the amount allowed for a holding deposit before the tenancy agreement is signed, and make sure you follow the special rules for holding deposits.
- Make sure that the tenants (all the tenants) (or in Wales, the contract holders) have signed a proper form of agreement before you hand over the keys and allow them into occupation.
- If you are letting to someone on any sort of benefit, try to get them to sign up to a credit union ‘jam jar’ account (if you can find one – they are less common than they used to be). This will ensure that the money is ringfenced for your rent and cannot be spent by the tenant on other things.
- Make sure you serve all relevant documents, such as the gas safety certificate, to the tenants before they move in, otherwise, you may have problems if you want to evict the tenants later.
- Be suspicious of people who offer to pay large sums of money in cash up front, particularly if they do not want you to carry out checks or inspections at the property later. These are classic signs of criminals who want to use your property for criminal purposes, such as a cannabis farm. Note that rent in advance will become illegal anyway once the Renters Rights Act is in force.
- Be wary of ‘desperate’ applicants who want immediate accommodation and who ask you to take them in before all the various checks have been carried out, or the documentation signed. Experience has shown that these often turn out to be nightmare tenants who are best avoided.
Some further information and resources:
- We have special checklists – our New Tenant checklist and the New Tenancy checklist which have guidance on all the things you need to do when sourcing a new tenant and signing them up.
- We have a detailed article on checking and referencing tenants, and
- An article on meetings with new tenants and questions to ask them
- We have a special ‘ tenancy receipt form‘ you can use to ensure you don’t forget any of the paperwork and which you can get tenants to sign to prove that they received it
- There is also a separate meter reading notification form
- We have Welsh versions of some of these forms, others are applicable to both England and Wales.
This is an important topic – more content may have been added since this note was drafted. We also have a large amount of information on the Tenant Fees Act.
Not a member?
Can’t find the answer to your problem?
Need more information?
Why not buy some Telephone Advice? (Members – £195 incl. VAT, Non-members – £210 incl. VAT – includes 1-month FREE Landlord Law membership).
