Choosing the right tenant is one of the most important decisions a landlord makes. Since the Renters’ Rights Act came into force in England, it is also one of the decisions that needs the most care. The aim is no longer to find a “perfect” tenant on instinct. It is to apply a clear, fair and well-documented process that protects your investment and stands up to scrutiny.
What the Renters’ Rights Act Changes About Tenant Selection
The Act changes how landlords advertise and choose between applicants. In practice, you should expect to:
- Avoid blanket bans in adverts or screening, such as “no children” or “no benefits”
- Advertise a single rent and not accept offers above it
- Consider a tenant’s request to keep a pet, and not refuse it unreasonably
- Ask for no more than one month’s rent in advance
Equality Act protections continue to apply as well. Rules and guidance are still being finalised in places, so check the current position before you advertise.
Start With Written Criteria
Decide your criteria before you advertise, write them down and apply them to every applicant in the same way. Typical criteria include:
- Affordability
- References from previous landlords and employers
- Credit history
- Right to Rent checks
- The length of tenancy the applicant is looking for
Applying the same standard to everyone is the best protection against discrimination claims, and it makes your decisions easier to explain if you are ever challenged.
Test Affordability Properly
Affordability is the most objective measure you have. As a rule of thumb, many landlords look for household income of around 30 times the monthly rent. For a property let at £1,000 a month, that is roughly £30,000 a year.
Look at how the income is made up and how secure it is. Where an applicant falls short, a guarantor is a fair alternative to a refusal, and your rent protection insurer may have its own requirements. Our guide to tenant referencing explains how to run these checks thoroughly.
Look at the Whole Picture
Strong applicants tend to share a few things that you can check:
- A history of paying rent on time, confirmed by a previous landlord
- Stable income, confirmed by an employer, accounts or other evidence
- A clean enough credit record for the rent being asked
- A clear reason for the move and a realistic timeline
None of these depend on who someone is. They depend on evidence, which is exactly what makes them defensible.
Handle Pets and Smoking Through the Tenancy, Not the Screening
Rather than screening people out, set sensible conditions in the tenancy agreement.
For pets, consider each request on its merits: the type of animal, the size of the property and any reasonable conditions you can attach. For smoking, a clause prohibiting smoking inside the property, together with a clear check-in and check-out record, protects the condition of the home.
Assess the Household, Not the Household Type
Single applicants, couples and sharers should all be held to the same standard. What matters is whether the household can afford the rent and keep to the tenancy, not how many people are in it or how they are related. Where there is more than one adult, check each person and ask for joint and several liability in the agreement.
Document Every Decision
Keep a record of the criteria you used, the checks you ran and why you made your decision. If an unsuccessful applicant asks, you can explain it factually. If a dispute follows, you can show that the process was consistent.
Questions to Ask Before You Decide
- Have I applied exactly the same criteria to every applicant?
- Can I evidence the reason for my decision?
- Have I considered a guarantor or other reasonable alternative before refusing?
- Is each condition I am setting reasonable and proportionate?
- Would I be comfortable explaining this decision to the applicant?
Final Thoughts
A fair process and a good tenant are not in conflict. Clear criteria, thorough referencing and consistent decisions lead to tenants who can afford the rent and look after the home, and they protect you as the regulations tighten. If you would rather have this handled for you, take a look at our full management service, starting at 7%.
General information only. Nothing in this article constitutes legal, tax or financial advice. Laws, rates and guidance change, and every property and landlord is different. Always check with a registered accountant or a qualified legal professional before you act.
