Proof of ownership and right to rent for landlords and tenant
For letting agents, tenants, and landlords, renting property is fraught with difficulty. Property owners face legal and financial risks from prospective tenants with no right to rent, while some renters find themselves forking out thousands of pounds to landlords who don’t even have legal rights over their property.
To avoid these legal, financial, and reputational risks, estate agents conduct a landlord check and tenant check to make sure both parties are entitled to rent out a property.
Landlord proof of ownership checks
It’s obvious, really. When a landlord wishes to rent out a property, they must prove to prospective tenants and letting agents they’re its legitimate owner.
Very simply, a proof of ownership check confirms that a landlord has the legal right to rent a property. It gives tenants confidence and peace of mind, but it also forms a key part of a letting agency’s due diligence process. It insulates both landlord and agency from litigation, protecting them from unwanted audits or criminal proceedings.
Proving ownership is relatively straightforward, potentially requiring only a mortgage statement, a title deed, or a HM Land Registry document. These identify the property in question and confirm its registered owner, and can be cross-referenced against valid ID documents to confirm a landlord’s liveness.
There are plenty of crooked landlords out there, so requesting proof of ownership allows letting agents to protect themselves and prospective tenants from fraudulent activities and unauthorised lettings.
Tenant right to rent checks
But renters aren’t off the hook. All prospective tenants must undergo a right to rent check to confirm they’re entitled to rent a property in England.
It’s a legal requirement first set by the Immigration Act 2014 to ensure foreign nationals are legally permitted to rent a property in England (there is no such requirement in Northern Ireland, Scotland, or Wales).
Landlords must check the right to rent of any tenant aged 18 and over, even if they’re not named on the tenancy agreement. Those who fail to do so will face significant penalties.
British and Irish citizens only need to present a valid passport, but foreign nationals can usually demonstrate their eligibility simply with their original immigration documents. This, of course, should be cross-referenced against ID documents to confirm their full name and date of birth is consistent, and that their photograph matches the individual in question.
Although right to rent checks concern foreign citizens, all tenants must be verified regardless of national or ethnic origin – even someone with a British accent is not necessarily a citizen, and is still subject to checks.
Nor do they stop with the initial checks. It’s an ongoing process: many foreign nationals have limited leave to stay in the United Kingdom, so landlords must perform a follow-up check on which ever date is later of:
the end of a tenant’s permission to stay in the UK
or 12 months after the previous check
No follow-up check is necessary if a tenant has indefinite leave to remain in the United Kingdom.
Choosing the right system
For letting agents needing to do their due diligence and make sure the whole process runs smoothly, choosing the right identity verification provider is essential. Checkboard offers a fast, straightforward method for confirming people are who they say they are with simple document uploads, instant biometric liveness checks, and HM Land Registry cross-referencing.
To find out more, get in touch with Checkboard today.
