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Full Reference check - after being at property for 6 years???

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Author Topic: Full Reference check - after being at property for 6 years???  (Read 700 times)

Sjamesm

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« on: February 09, 2021, 09:19:32 PM »
Hi

My letting agent have requested I be referenced, even though we have been renting the property for over 6 years.
We are about to re-new but this has never been a problem before and we have never missed a payment in 6 years so I can't imagine its about trust.

Is it normal or allowed for landlords to perform a reference check during tenure?

When we asked the letting agent why we have to do this they said it was regarding the landlords insurance policy

Many Thanks
Stuart

KTC

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« Reply #1 on: February 09, 2021, 09:32:09 PM »
I would say it's unusal, but of course it's allowed. It's up to you whether to agree to it or not. I presume you want a new fixed term for whatever reason, and the landlord are willing to agree to one on the condition of a new reference check for their insurance.

It's not unusual for a landlord's rent guarantee insurance to require the tenant to have been referenced in a particular way they specify. If the landlord is changing insurer, previous reference you've done wouldn't qualify.

Sjamesm

Newbie
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« Reply #2 on: February 09, 2021, 10:17:26 PM »
Hi

Great - thanks for the reply, that makes sense.

Inspector

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« Reply #3 on: February 10, 2021, 11:17:01 AM »
With the uncertainty of the economy right now even the most reliable tenant can find themselves out of work and struggling to pay.

I imagine there is an increase in landlords getting rent protection insurance which requires referencing.

Hippogriff

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« Reply #4 on: February 10, 2021, 03:04:29 PM »
Those RGI policies are now becoming more scarce on the market... and costlier to boot. For obvious reasons. At least with referencing now for the existing Tenant it's just an admin. chore... someone else pays for it all. That said, if I was feeling contrary I'd at least push back on it... you're doing something for someone... I don't believe you can be forced... but there are obvious consequences... you can figure that out in relation to your current plans. You don't need to renew the agreement you have... it can move to a statutory periodic tenancy instead and this may be preferable for you. Who knows?

El Porto

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« Reply #5 on: March 12, 2021, 11:20:07 AM »
Totally correct - my rent insurance has gone up by 25%, and they require full referencing and credit checks to validate the insurance.

cindyp

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« Reply #6 on: April 27, 2021, 03:13:34 PM »
I had the same issue when Endsleigh decided to withdraw from the RGI market.  I looked for other providers but the restrictions on new policies post Covid meant that they provided less cover and if the original policy had lapsed then I had to get my tenant of 7 years referenced again by the provider of the cover. (Endsleigh didn't give much notice, just said they weren't renewing and no longer in the RGI market) . Previously with Endsleigh I was able to choose my own reference company which was a lot cheaper than what the new providers were charging.  Also my tenant is self employed and  I don't think his income multiple would pass the current referencing requirements of 2.5 x rent.   He's always paid his rent on time  and he's a good tenant so in the end I decided that  because he wouldn't meet the new tougher criteria that I would just continue without RGI.  Most policies also wanted fixed term contracts and Tenant has been on a periodic rolling tenancy for the past 5 years or so anyway and that suits us both.   Rightly or wrongly, I also feel that most RGI providers nowadays  would try and wriggle out of paying out in the event of a claim if they could. 

Hippogriff

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« Reply #7 on: April 27, 2021, 03:32:22 PM »
Rightly. You think rightly.

KTC

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« Reply #8 on: April 27, 2021, 03:59:57 PM »
Quote from: cindyp on April 27, 2021, 03:13:34 PM
I also feel that most RGI providers nowadays  would try and wriggle out of paying out in the event of a claim if they could.

I don't think the word "nowadays" is required in that sentence.  ;)
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