A third-party provider of legal expenses cover, ARC, has recently changed its terms, now requiring landlords to obtain tenant references for legal claims to be accepted. This change applies even if the main building insurer covers various tenant types.
The updated definition of a tenant reference includes a credit check showing no County Court Judgments in the past three years or any outstanding, two forms of identification (one with a photograph), and an employer's reference. The employer reference must confirm permanent employment and a gross monthly salary at least 2.5 times the tenant's rent.
For student tenants or those receiving government benefits, a full tenant reference showing a 'Pass' from an ARC-approved company is required. Legal cover will not apply if evidence of a successful tenant reference is not provided before the tenancy starts, or if the tenancy began more than 31 days after the reference was obtained.