What happens if the tenant fails their references?
Referencing should turn around relatively quickly as long as the tenant has supplied you with the right information. There may be an occasion where despite that, the tenant does not meet the criteria set by the reference company.
However, even in these circumstances, the final decision would be yours. It may be that despite the outcome you may want to accept the tenant regardless. Assess the risk and make the most appropriate decision for your situation
Make sure that you record anything you agree with the tenant. Check any insurances you have in place and your mortgage and lease information.
Do they need a guarantor?
If the tenants don’t meet the affordability criteria or are unemployed/student then you may want to have a Guarantor.
For further information on guarantors, including your legal obligations, please visit this page: https://www.nrla.org.uk/resources/pre-tenancy/guarantor-documents-and-guidance
Do I need to refund the holding deposit?
Please read our holding deposit guidance.
When must a holding deposit be refunded in full?
Where the tenancy does not go ahead, but the applicant was truthful and timely in responding to information requests, then the money must be repaid in full within 7 days of the deadline being reached or the landlord backing out.
Repayment does not need to be in full if;
the applicant backs out before the tenancy agreement is granted;
fails right to rent checks and it was not reasonable for the landlord or agent to know they would fail;
the tenant has provided false or misleading information which would impact on the decision to let the property to them;
the landlord tries their best to get the information needed to proceed but the applicant fails to provide it within the 15 days;
Landlords and agents who choose to retain a holding deposit should protect themselves by making sure they have written evidence that they asked relevant questions on earnings, etc that will have an impact on their decision making in granting a tenancy. The NRLA's tenancy application form is ideal for collecting this evidence.
For further information on Holding Deposits, including your legal obligations, please visit this page: https://www.nrla.org.uk/resources/pre-tenancy/tenant-fee-ban-toolkit