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TODAY'S OTHER NEWS

Tenants can now ‘quickly’ share data and it’s a ‘complete game-changer’

We all know that high quality detailed tenant references are crucial to ensure that people placed in rental properties have been thoroughly checked and recommended as reliable and acceptable for the rental value.

Tenant referencing offers landlords clarity and essentially confidence that their property will be well looked after. It provides all the background information on prospective tenants, helping landlords and letting agents make an educated choice about who they are letting their properties to, what a tenant does for a living, a previous landlord recommendation, crucially their right to rent in the UK, and - more importantly - their financial position, including their ability to pay the rent on time each month.

Tenant referencing is important for landlords and tenants as it gives a good insight into the tenant’s financial and renting history, enabling landlords to make an informed decision as to whether or not to accept a potential tenant.

Until now tenant referencing across the letting industry has relied upon tenant referencing companies accessing publicly available credit information only.

This credit information is limited to details about County Court Judgements, individual voluntary arrangements and bankruptcies. It has not been possible previously to access and analyse the tenant applicant’s full credit file.

But Let Alliance has completed a two-year strategic project that has resulted in redefining the way that tenant referencing works in the UK, with references now returned the same day.

Working closely with credit data agency and information solutions provider TransUnion, Let Alliance has developed the process that allows consumers to give Let Alliance, when acting for professional letting agents and their potential landlords, access to their full credit file.

This means that for the first time in the UK, Let Alliance will complete tenant references based on the full credit information, with the same level of detail that is used by banks, building societies, and credit card companies. Accessing the data and the initial affordability assessment will be completed in real time.

The combination of analysing the full credit file with the integration of Open Banking and the proprietary Let Alliance affordability algorithms means that the majority of tenant references will be completed within 24 hours on a high percentage of cases.

The process works in the same way that banks, building societies and credit card companies make decisions. It is much faster than the historic rental vetting process, offering a much smoother application and allowing tenants to move into their new homes much more quickly. There will be no need for tenants to upload, scan or email documents, as the crucial information required will be accessed through Open Banking technology.

Andy Halstead, CEO at Let Alliance commented: “For many years now it has been a vision of mine to give letting agents access to tenant referencing using the same data that banks and credit card companies use.

“Through our partnership with TransUnion we have found a solution whereby consumers can quickly and easily share their data with Let Alliance, and it is a complete game-changer.

“We are no longer restricted to limited information; we now lead the way and our leading technology has been the key to our success. It’s also a great example of how consumers can take charge of their own data to help them achieve their goals; in this case helping them secure the rental property they’re after with a quick and easy process.”

Having worked with Let Alliance for over eight years, Kelli Fielding, managing director at TransUnion, says that her firm is “delighted to have supported them” in why he views as a “pioneering initiative that revolutionises their rental vetting process”.

She commented: Consumers can now give their consent to share their full credit file with Let Alliance when they are conducting the checks, cutting timescales from days, or sometimes weeks, to a same day turnaround and making the consumer journey much smoother.

“Our Open Banking technology which is built into this process provides a detailed understanding of the potential tenant’s financial status – spanning income verification, risk and affordability–helping letting agents to make an informed assessment whilst also delivering an improved customer experience.”

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    Surely this can be done by the tenant simply printing off his Experian report and letting the landlord seeit?

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    And if the tenant refuses, which they have every right to do so, they don't get the tenancy, easy.

     
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    Are you alllowed to ask for an experian report on a tenant in situ when you buy the property?

  • Paul Barrett

    LL?
    Really.
    Do you a seriously not know how to obtain tenant's credit reports for free.
    Join LRS for nothing.
    Then using the email link they give you send the checkmyfile link to the tenant
    The tenant then receives ALL credit file details from checkmyfile and is at liberty to send ALL that info to the LL.
    As it is all FREE if a tenant refused to send you all their credit file data would that give you pause for thought!!??
    Plus if you use LRS you could also check if any other LL has registered them as good or bad tenants.
    Come on LL please keep up.
    LRS has ONLY been going for 10 years and yet it seems some of you haven't heard of them..........................................dear me!!!!
    Unfortunately they have suspended their excellent Tenant Referencing Passport service as they are ascertaining whether it complies with the new TFA.

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    Simple answer is. Dont take any tenant on with out Full ID, Full income details, Bank Statement, Full employer details, Previous confirmed address, and LLs reference, Clear Credit Serch.
    Full Clear Guarantor details if one needed, Advance rent if no guarantor if needed. No daily curry eaters, No pets, No single parents, No UC. Ever so simple rules.

  • Paul Barrett

    I would suggest a guarantor is always required unless RGI is achievable.
    Very few tenants especially those in receipt of HB are able to source an appropriate guarantor.
    All these things are great in theory.
    But in the absence of RGI or guarantors for most LL they are taking massive BUSINESS risks whether they appreciate that or not.

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    Never had a problem with employed tenants or students be them foreigners or english. Only take guarantors for UK students all foreign students pay 6 monthly or 12 monthly in Advance with no guarantors. Dont take UC tenants.

    Paul Barrett

    I have never come across any tenant able to pay 12 month's rent in advance!!
    Well done you.
    At commencement of the 11th month do you issue S21 in case at the end of the 12 month AST the tenant does not pay another 12 month's rent in advance!?
    Of course without RGI or a guarantor with RGI on them your tenants could refuse to pay anymore rent.
    It could take 10 months to evict!!
    Advance rent has limited efficacy.
    Give me RGI and 2 month's rent with one month's rent in advance everytime.
    Though if course the TFA compromises the 2 month's rent as deposit process.
    I will still insist on 2 month's rent as deposit.
    It just won't be identifiable as a deposit amount.

     
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    No the TA says when they have to vacate and i will have secured new tenants with a move in date.
    I will carry out Check Out and confirm details and send on SD with or with out agreed deductions.
    If students want to continue they resign a New TA effective from end of current TA,, no break no void even if the go home for 4 or 6 wks.

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