It’s important that landlords know the referencing process when the tenant is a company rather than an individual. While the process is similar to referencing an individual tenant, there are a few additional steps that you need to follow. This guide will provide you with a comprehensive overview of the referencing process when your tenant is a company.

What Is a Company Tenant?

A company tenant is a business entity that rents a property for commercial or residential purposes. The company is responsible for paying rent and ensuring that the property is maintained in good condition. In most cases, the company will have a director or a representative who will act as the point of contact with the landlord.

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Why Referencing a Company Tenant Is Different?

Referencing a company tenant is different from referencing an individual tenant because the landlord needs to evaluate the financial stability and creditworthiness of the company rather than the individual. Additionally, the landlord needs to ensure that the company is registered with the Companies House and has the necessary authority to enter into a rental agreement.

The Referencing Process for a Company Tenant

• Identify the company: The first step in the referencing process is to identify the company that will be renting the property. This can be done by obtaining the company’s name and registration number from the Companies House.
• Conduct a credit check: The landlord needs to conduct a credit check on the company to evaluate its financial stability and creditworthiness. This can be done by using a credit reference agency.
• Check for CCJs: The landlord needs to check if the company has any County Court Judgments (CCJs) against it. This can be done by conducting a search on the Registry Trust website.
• Obtain references: The landlord needs to obtain references from the company’s bank and accountant to evaluate its financial position and ability to pay rent.
• Check for previous rental history: The landlord needs to check if the company has a good rental history by obtaining references from its previous landlords.

Documents Required for Referencing a Company Tenant

• Company registration certificate: This document proves that the company is registered with the Companies House and has the necessary authority to enter into a rental agreement.
• Director’s guarantee: The director’s guarantee is a document that confirms that the director of the company is personally liable for any rent arrears or damages caused to the property.
• Bank statements: The landlord needs to obtain the company’s bank statements to evaluate its financial position and ability to pay rent.
• Accountant’s reference: The accountant’s reference is a document that confirms the company’s financial position and ability to pay rent.

FAQs

1. What if the company is a new business and doesn’t have a credit history?

If the company is a new business and doesn’t have a credit history, the landlord can ask for a personal guarantee from the director or ask for a larger deposit.

2. Is it necessary to check the company’s rental history?

Yes, it’s important to check the company’s rental history to ensure that it has a good track record of paying rent on time and maintaining the property in good condition.

3. Can a company tenant be evicted for non-payment of rent?

Yes, a company tenant can be evicted for non-payment of rent. However, the process is different from evicting an individual tenant, and the landlord will need to seek legal advice.

4. Is it necessary to obtain references from the company’s bank and accountant?

Yes, obtaining references from the company’s bank and accountant is important to evaluate its financial position and ability to pay rent.

Conclusion

Referencing a company tenant requires a different approach compared to referencing an individual tenant. As a landlord, it’s important to conduct a thorough referencing process to ensure that you’re renting your property to a financially stable and reliable tenant. By following the steps outlined in this comprehensive guide, you can ensure that the referencing process for a company tenant is conducted efficiently and effectively. Remember to obtain all the necessary documents, conduct credit checks, and obtain references to make an informed decision.

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