🧭 Why Tenant Screening Matters More Than Ever
For landlords across Barry, Cardiff, and the Vale of Glamorgan, choosing the right tenant is one of the most important decisions you’ll make. A reliable tenant means consistent rent payments, fewer disputes, and a lower risk of property damage. More than just avoiding a poor choice, effective tenant screening can lead to a stress-free tenancy, improved rental returns, and a smoother relationship with your tenants.
Effective tenant screening helps reduce those risks, but it must be done legally and fairly. Under the Renting Homes (Wales) Act 2016 and UK equality legislation, there are clear rules on what landlords can check, how they must handle personal data, and what practices are prohibited. By following these laws, you can ensure a secure and protected tenancy for both you and your tenants.
This guide breaks down the essentials, so you can protect your property and stay compliant with the law.
✅ What Landlords Can Legally Check
Tenant screening isn’t about prying into someone’s life; it’s about ensuring they are financially stable, trustworthy, and likely to respect your property. These are the checks you’re legally allowed (and strongly advised) to carry out:
💳 1. Credit and Financial Checks
Credit checks give you an overview of a tenant’s financial history, including missed payments, defaults, or CCJs. They’re a vital indicator of whether they’re likely to pay rent on time.
- Use a reputable referencing agency or letting agent.
- Always obtain the tenant’s written consent before running a credit check.
🧾 2. Employment and Income Verification
You’re entitled to ask for proof of income, typically recent payslips, bank statements, or an employment reference. As a general rule, a tenant’s income should be at least 2.5 to 3 times the monthly rent.
- Contact employers directly (with the tenant’s permission) for verification.
- Self-employed tenants can provide tax returns or a reference from an accountant.
🏠 3. Previous Landlord References
A reference from a past landlord can reveal crucial details about payment history, property care, and conduct. Always ask:
- Did the tenant pay rent on time?
- Were there any significant issues or complaints?
- Would the landlord rent to them again?
🪪 4. Right to Rent Checks
Landlords in Wales must ensure that all adult tenants have the legal right to rent in the UK.
- Check original passports, visas, or immigration documents.
- Keep copies securely and record the date of the check.
⚠️ Failure to carry out Right to Rent checks can result in fines of up to £3,000 per tenant.
🚫 What Landlords Must Not Do
While thorough screening is essential, specific actions can land you in serious legal trouble. Here’s what’s off-limits:
❌ 1. Discrimination
It’s illegal to discriminate against tenants based on protected characteristics under the Equality Act 2010, including race, gender, age, religion, disability, sexual orientation, or pregnancy.
- You cannot reject a tenant based solely on their nationality or immigration status if they have the legal right to rent.
- Blanket bans (e.g. “No DSS” or “No children”) can also breach equality law.
❌ 2. Unlawful Data Handling
The UK GDPR and Data Protection Act 2018 require landlords to handle tenant data responsibly.
- Collect only necessary information.
- Store data securely and delete it when no longer needed.
- Provide a privacy notice explaining how data will be used.
❌ 3. Excessive or Irrelevant Questions
Stick to information relevant to the tenancy. Asking intrusive personal questions, such as about medical history, family plans, or political beliefs, is not only inappropriate but may also be unlawful.
⚖️ Wales-Specific Rules Landlords Must Know
Since the Renting Homes (Wales) Act 2016 came into effect, all tenancy agreements in Wales are now known as Occupational Contracts. This has implications for the screening process:
- 📜 Written contracts must be issued within 14 days of occupation.
- 🏢 All landlords must be registered with Rent Smart Wales.
- 🧑⚖️ Screening processes must be applied consistently to avoid potential legal disputes.
Working with a professional letting agent ensures your tenant selection process meets these legal requirements from start to finish. Their expertise and guidance can provide you with the support you need to navigate the tenant screening process effectively and in compliance with the law.
🛠️ Best Practices for a Smooth Screening Process
A structured approach makes screening easier and more reliable. Here’s a simple process to follow:
- Pre-screen early – Ask key questions in initial enquiries (e.g. move-in date, employment, household size).
- Use professional referencing services – They compile credit, employment, and landlord history checks.
- Meet applicants in person – Viewings are a great way to gauge reliability and communication style.
- Be consistent – Apply the same checks and criteria to all applicants to avoid claims of discrimination.
- Keep clear records – Document your decision-making process in case of future disputes.
🧠 Common Mistakes to Avoid
Even experienced landlords sometimes slip up during tenant screening. Watch out for these frequent errors:
- ❗ Skipping references – Always verify landlord and employment details rather than relying on documents alone.
- 🗂️ Failing to follow up – Incomplete information can hide potential red flags.
- 🔍 Judging on gut feeling alone – Always support decisions with evidence and objective criteria.
- 📆 Rushing the process – Taking the time to vet properly is far cheaper than dealing with eviction proceedings later.
Screening Is Protection
A thorough, legally compliant tenant screening process is your first line of defence as a landlord. It reduces risk, improves rental returns, and ensures a smoother tenancy for both parties. Most importantly, it helps you build long-term, positive landlord-tenant relationships, something that benefits everyone involved.
📞 Let REMAX Estate Agents Help You Get It Right
At REMAX Estate Agents, we take the stress out of tenant screening. From full referencing and compliance checks to drafting legal Occupational Contracts, our expert lettings team ensures your property and your investment are protected.
👉 Contact RE/MAX Estate Agents today to learn how we can help you find reliable tenants quickly and legally.
