Frequently Asked Questions
1. Do I have to use a particular Tenant Referencing company to reference my tenant(s)?
2. Do I have to use a tenant referencing company?
3. Do I need to obtain credit checks for all tenants?
4. The Tenancy Agreement is renewed on a month by month rolling basis – is that ok?
5. Should I take out this policy at the commencement / renewal of the Tenancy Agreement?
6. What types of tenant are acceptable for rent guarantee & legal costs insurance?
7. I have collected a deposit of 6 weeks rent and my tenant has defaulted, does my excess increase from 30 days to 6 weeks?
8. My tenant has a CCJ, does this make a difference?
1. Do I have to use a particular Tenant Referencing company to reference my tenant(s)?
As this policy was designed to compliment a ‘Pass’ rated tenant reference from Keysafe Tenant Vetting it is recommended that their services are used, however, our insurer will accept applications where the tenant applicant (and any Guarantor) have passed the highest level of referencing service from any of the following approved referencing companies:
- Keysafe Tenant Vetting click here to purchase referencing from Keysafe
- Rentchecks.com
- TenantVERIFY
- Rentguard Tenant Referencing
- FLS Referencing & Credit Services
- Experian Plc
- Property Risks
- MARAS
- Letsure Limited
- Homelet
If a prospective tenant passes a reference with recommendations i.e. a higher deposit is collected or a Guarantor is assigned to the agreement, these recommendations must be complied with at all times to validate cover.
2. Do I have to use a tenant referencing company?
Yes, other than for applicants in full-time employment where it is recommended that you use a tenant referencing company but it is not essential. For applicants in full-time employment our insurers minimum requirements are the ‘4-point check’ which is as follows:
- Two forms of identification from the tenant, one of which must contain a clear photograph (such as a passport or driving licence).
- A written employment reference on company headed paper confirming salary and continued employment status.
- A credit check confirming no outstanding County Court Judgements from any of the following companies:
You do not have to provide a copy of the tenant referencing / 4-point check at point of purchasing your legal costs & rent guarantee insurance policy but in the event of you having to make a claim, failure to provide evidence of the above referencing requirements to the insurers claims company (Arc Legal) will invalidate your cover and no payments will be made.
3. Do I need to obtain credit checks for all tenants?
Yes, you must obtain a credit check & relevant references for each and every tenant named in the Tenancy Agreement(s), including marital spouses. Any dispute with an occupant in the property that is not a named tenant and has not passed a tenant reference will not be covered under the insurance.
4. The Tenancy Agreement is renewed on a month by month rolling basis – is that ok?
Yes, however, rent arrears will be paid up to the expiry of the eviction notice (arranged by the claims department) up to the end of the policy or when vacant possession has been obtained, whichever event occurs first.
5. Should I take out this policy at the commencement / renewal of the Tenancy Agreement?
Ideally Yes. If the Tenancy Agreement commenced or was renewed more than 14 days prior to the start of the policy there will be no cover for any incident occurring within the first 90 days of the policy term.
6. What types of tenant applicant are acceptable for rent guarantee & legal costs insurance?
Working Persons as long as the Tenancy Agreement is directly between landlord & tenant and the tenant has passed a tenant reference. Students and persons claiming DSS benefits are only acceptable if they have passed a tenant reference and are guaranteed (by way of a guarantor agreement correctly assigned to the Tenancy Agreement) by a person/organisation that has also passed a tenant reference.
7. I have collected a deposit of 6 weeks rent and my tenant has defaulted, does my excess increase from 30 days to 6 weeks?
Yes, however should you find damages to your property once vacant possession has been obtained, we will reduce the excess to 30 days and pay you rent arrears for the period from the 31st day to the end of the 6th week.
8. My tenant has a CCJ, does this make a difference?
Tenants with CCJ’s are unacceptable for the rent guarantee and legal costs insurance unless they pass a tenant reference from Keysafe Tenant Vetting, however, it is highly likely that they will only pass if a Guarantor is also assigned to the tenancy agreement and that Guarantor must also pass a reference from Keysafe Tenant Vetting.
If you have any other questions then please call our Landlords Insurance Team on 0118 970 3779 (Lines open 9:00am to 5:00pm, Monday to Friday) or send us a message.
