Checks before you set up a private tenancy
Before you ask a tenant to sign a tenancy agreement, there are a few things you need to do.
You can ask for certain payments and a guarantor.
Doing background checks
When considering potential tenants you can ask for:
- a copy of their passport or driving licence to prove their identity
- copies of payslips or bank statements to prove they can afford the rent
- contact details for previous landlords for a reference
You can only check their credit rating if they give you written permission. You should not charge a fee for doing a credit check for the tenant or their guarantor. This is an illegal fee and the tenant can claim it back.
You do not need to check a tenants ‘right to rent’ in Scotland. This immigration policy only applies in England.
Asking for a tenancy deposit
You can ask your tenant for a tenancy deposit of up to 2 months’ rent.
You cannot charge a non-refundable holding deposit or key money. These are illegal fees and the tenant can claim them back.
If you plan to ask for a tenancy deposit, you must follow rules for protecting the deposit.
Asking for a guarantor
You can ask your tenant for a guarantor.
This is someone who agrees to be legally responsible for paying:
- any unpaid rent
- for damage to the property if your tenant does not pay
Why you might ask for a guarantor
Not all tenants need a guarantor.
You might choose to ask for one if you're concerned about the tenants’ finances. For example, if the tenant:
- does not have a job
- has a poor credit record
- does not have a reference
If you ask for a guarantor, you must get them to sign the guarantor section of the tenancy agreement.
Check what guarantors are responsible for.
Asking for rent in advance
You can ask your tenant to pay rent before they move into the property. This can help when the tenant has no guarantor.
You must tell them what period this is for. You cannot charge more than 6 months’ rent in advance.
If your tenant pays rent in cash, you must give them a receipt.