Can landlords give a bad reference?

Undoubtedly, tenant screening is one of the most important parts of the process when taking on someone new to live in your rented property. Finding the right tenants can be a real challenge, and when you get it wrong, it can make your life really difficult. Landlords can give tenants a bad reference, which means that you have an extra layer of security when looking for new tenants to rent your property. Equally, you are within your rights as landlords to give previous tenants a bad reference. 

There are no guarantees with any tenant – even one who ticks every box before signing the lease can cause problems once they have moved in. The tenant referencing process, however, is designed to make sure that you take on someone trustworthy and reliable. But what happens if you find a new tenant and they have bad references?

Why are tenant references important?

But why are tenant references important? And how can you get past a bad landlord reference when deciding to offer your property to new tenants?

When you are screening a prospective tenant, you should always ask them to provide references. When they provide these references, you should then follow up to confirm their validity. References serve as a way to get to know your tenant in all the necessary ways before you decide whether or not to rent to them.

Ideally, they should provide an employer reference, a financial reference, and a previous landlord reference, if possible. If the tenant has rented in the past, you should try and get references from every landlord that they have rented from in the last three to five years.

As a landlord, you may come across prospective tenants who have bad references from previous landlords. This doesn’t necessarily mean that you should decline their application. You are still within your rights to look beyond the reference and make the decision for yourself. 

A prospective tenant with a bad previous landlord reference should be upfront with you and should still provide the necessary information. If the bad reference is based on inaccurate or unfair information, the tenant can also communicate directly with the previous landlord to resolve the issue or challenge the reference.

Previous landlord references

Yes, landlords can give a bad reference, and previous landlord references are arguably the most important references that you can get your hands on. When you speak to the previous landlord, make sure you ask whether they found the tenant trustworthy, if they had any problems with paying their rent on time, and whether they looked after the property. You should also ask them whether they would rent to this person again.

If you receive negative information from the landlord, it is important to consider whether they are truly being open and honest with you, or whether they are being unfair and negative. This way, you can figure out how to get past the previous bad landlord reference. It’s difficult to know the full story, and it may be that the prospective tenant is receiving an unjust bad reference. If things don’t sound good and you have reason to believe that the landlord is being truthful and fair, then it may be best to find someone else. If your tenant has never rented previously, or cannot provide a previous landlord reference for whatever reason, see if you can speak to their parents (especially if this is the first time they will be renting) or get hold of a financial reference. This could be payslips, bank statements, and/or a letter from their employer to confirm their salary.

Employer references

Unless your tenant is unemployed and on benefits, you need to know that they are earning enough to be able to afford the rent. That’s why it is a good idea to get an employer reference. When you speak to an employer, you should find out the prospective tenant’s salary,  how long they have been with the company, whether they work part-time or full-time, and whether their employment is secure – especially in these current times. Some employers may be more receptive than others in releasing this information, but if you can at least confirm their salary, then that is the most important thing.

What if a tenant refuses to give references?

Although there is little way of finding out the whole story, if a tenant refuses to provide references, then it’s probably safe for you to assume that they are hiding something and their previous landlord has given them a bad reference. If they don’t want you to speak to a previous landlord, then you have the right to conclude that it’s because the landlord won’t have good things to say about the tenant.

With so many tenants competing for properties, if you come across a tenant who cannot pass the referencing process or refuses to provide references, there will probably be a handful of other tenants who will. It’s probably not worth taking any risks that you might come to regret later down the line. 

There is no way to completely protect yourself when it comes to choosing a tenant; however, following all the right screening processes is a good place to start, as this will also allow you to be able to get past a previous bad landlord reference for new tenants. At least if things do go wrong, you know you did everything you could to ensure that you found yourself a good and reliable tenancy. A tenant with bad references will always be a risk – but ultimately it is your decision, and every tenant and their story will be different, so treat it on a case-by-case basis

So, can landlords give a bad reference?

Yes, landlords can give bad references, and they may rightly so put you off renting to a tenant. But during the whole tenant screening process, remember that tenant discrimination in housing is covered in part 4 of the 2010 Equality Act. You cannot reject a tenant on the grounds of ‘protected characteristics’, such as disability, gender, race, sexuality, or religion.

An extra step you can take to give yourself peace of mind is to take out a landlord insurance policy. This can cover you against loss of rent, malicious damage caused by tenants and more. It doesn’t have to cost the earth to get insured either! 

Many of CIA Landlord Insurance’s partners offer cheap landlord insurance whilst keeping you protected. Contact CIA Landlords for more information on a landlord insurance policy that is tailored to your needs. Get in touch today!