Tenant Referencing Checks For Landlords to Complete Before Letting
Imagine a tenant applies for your property and shakes your hand with great confidence. They tell you their last landlord was unreasonable. You trust your gut and hand over the keys. Six months later, the rent is late, and your emails go unanswered.
Tenant referencing is your due diligence. It catches these problems before they cost you. Since the Renters’ Rights Act came into force on 1 May 2026, it matters even more. Estate Agents Ilford treats thorough and well-documented referencing as vital protection for your income and property. Below we explain what referencing involves and why it matters to UK landlords today.
What is Tenant Referencing?
Tenant referencing is a set of background checks carried out on a prospective tenant before a tenancy begins. Referencing gives you confidence that your applicant is genuine and able to pay the rent. It also shows how they have cared for previous rental properties.
A standard referencing for tenants process usually includes:
- Identity and Right to Rent checks: Proof of tenants’ immigration status and their right to rent in England.
- Employment and income checks: Confirming they have a job and that their pay covers the rent.
- Credit checks: A look at their financial history for missed payments or court judgments.
- Previous landlord references: A quick word with their old landlord about rent and how they kept the place.
- Guarantor checks: Vetting the person who will pay the rent if the tenant can’t.
Around one in four landlords (26%) experienced rent arrears in the past year (Q2 2026), according to Pegasus Insight’s Landlord Trends research for Paragon Bank. Referencing is the best way to protect rental income and the condition of the property, because it gives you a documented record of why you chose a tenant.
Why Tenant Referencing Matters More After the Renters’ Rights Act?
Since 1st May 2026, Section 21 no -fault evictions were abolished, and landlords can no longer regain possession simply by serving notice under the Renters’ Rights Act 2025. A valid legal ground is now needed to evict tenants, and a court process may follow if the tenant contests it. It makes referencing process and the right tenant at the start the most important decision.
Here are the main changes that make tenant choice more critical for landlords:
- Regaining possession is harder because it takes longer and depends on proving your case.
- Tenancies are now periodic, so rolling tenancies replace fixed terms and reliable tenants matter more.
- Rent arrears cost more because rent may go unpaid while possession proceedings continue.
- Fair treatment and discrimination rules are stricter now. So referencing must be consistent and evidence-based, and you cannot refuse applicants for receiving benefits or having children.
Tenant Referencing Checklist
Referencing isn’t a legal requirement for letting a property in the UK. But skipping it is still a risk for landlords because eviction proceedings aren’t that quick in England. Basic checks cover identity, credit and right to rent, while comprehensive references include employment status, previous landlord, affordability checks and more.
1. Pre-screen the applicant
To arrange a pre-screening check, start with a quick call or short form before going for full checks. Ask about the move-in date, who’s living there, pets and their job. Since tenants can’t be charged for referencing, screening them early saves you money on applicants who were never going to pass.
2. Verify identity
Ask for a passport or photo driving licence. Check the expiry date, look at the photo, then match with the person. The name should match everything else on the application. If one document says Jonathan and another says Jon, it’s the quickest red flag. If the tenant doesn’t have any Photo ID, you’ll need to carefully consider them for further checks.
3. Carry out Right to Rent checks
In England, it’s legally required to carry out Right to Rent checks. Every adult living in the property needs checking, even if they aren’t on the tenancy agreement. British and Irish citizens can show a passport. Many others give you a Right to Rent share code, which you verify online. Keep dated copies, because a missed check can mean a fine.
4. Check Proof of Address
A recent utility bill or bank statement does the job. Ask for their last few addresses too, and get a straight explanation about any gaps. The commonly accepted documents may include:
- Recent utility bills except phone bills or insurance documents.
- Council Tax bill of current Year.
- Driving Licence
- Recent Bank, credit card or building society statements.
- Previous tenancy contract.
5. Run a Credit Check
Get tenants’ permission first to check their credit details. The credit checks show whether a tenant is punctual in paying or has any judgment against them in the County Court.
There are many online platforms where you can credit check your tenants. The report shows CCJs, bankruptcies, defaults and past addresses. One late payment from years ago is minor, but a pattern of missed ones or long periods of missed priority debts like mortgage payments or HMRC payments is a warning sign. But you can’t solely reject them due to this because it doesn’t mean they’re bad tenants; they may be facing financial difficulties or economic redundancies. Use your own judgement based on each tenant.
6. Check Income and Affordability
Ask for recent payslips and bank statements. A common yardstick is annual income of around 2.5 to 3 times the annual rent. Don’t take the payslip at face value because forged payslips is the fastest growing form of rental application fraud in the UK.
Match each one against three months of bank statements. It will help you to confirm:
- What your prospective tenants spend their major part of money.
- When and how much they get paid through their employers.
- How much disposable income they have.
7. Confirm Employment
Contact the employer yourself, using a number you found, not the one on the application of tenants. Confirm the job title, contract type and start date. Fraudsters can build entire fake identities with false employers and invented referees, and a friend’s mobile posing as “HR” is the classic trick. For self-employed applicants, ask for tax returns or an accountant’s reference.
8. Previous Landlord Reference
This is your best clue to know how they’ll behave as your tenant and identify any gaps in their rental history. Ask how the rent was paid, their contact details, how they looked after the place, and how they left. But don’t pass a judgement because there can be legitimate reasons for missed rent payments and details not being provided. The person giving the reference should be the person who actually owns the property, as fake landlords do exist.
Pro Tip: Verify that the person providing the reference is a homeowner by looking at their Land Registry Data. if the applicant is using a guarantor, you can still check the data to confirm their reference validity.
9. Assess the guarantor (if needed)
A guarantor steps in when the tenant can’t pay. Run them through the same checks as the tenant. A homeowner is the stronger choice, and the Land Registry confirms ownership in minutes. The Renters’ Rights Act limits rent in advance to one month, which closes the old workaround of taking extra upfront from borderline applicants. A guarantor is now the practical fix for it.
10. Keep a Clear Record
Save dated copies of every document and note when each check was done. Under UK GDPR, record your lawful basis for using their personal data. If you have rent guarantee insurance, the insurer may require proof that referencing was completed before the tenant moved in.
11. AML and Sanctions Screening
Some letting agents now add PEP and sanctions checks to referencing, so you may see it on an application. Landlords rarely do this themselves. The agent will look up the tenant, and any guarantor or company tenant, on sanctions lists and check if they hold a prominent public role. A sanctions match must be escalated, while a PEP hit doesn’t mean automatic rejection. It means extra due diligence if you let without an agent; it’s rarely required but can suit higher-value or overseas lets.
| Quick Answer: When Should You Ask for a Guarantor? A landlord can ask for a guarantor in these situations: – Income falls below the affordability threshold: commonly around 2.5 times the annual rent. – The tenant is a student: who may have little or no income of their own. – The tenant has very thin references: such as limited credit or rental history. Guarantors should be referenced too, and asking for one should follow the referencing result. |
Tenancy Fraud Is Rising: Why Every Reference Check Needs Verifying
Tenancy fraud has been growing, and AI is making forged documents harder to spot. The Renters’ Rights Act came into force on 1 May 2026 and ended Section 21 no-fault evictions, so getting a tenant out now means proving a Section 8 ground. Picking the right person at the start matters more than it ever has.
Fraud makes that harder. Goodlord flagged 41 tenancy applications in every 1,000 for suspected fraud between July 2025 and June 2026. Fake employment references rose by 226.6% during 2025, making them the fastest-growing type of fraud. That’s why each check above is about verifying, not just collecting paperwork.
Tenant Fees and Charging For Reference Checks
Under the Tenant Fees Act 2019, landlords and letting agents in England cannot charge for referencing, credit checks, or guarantor checks. The ban still applies when the applicant fails those checks. The cost of tenant referencing sits with the landlord or agents, and permitted payments are limited to items such as rent, a refundable deposit or a holding deposit.
Breaching the ban is a civil offence, with penalties of up to £5000 for a first breach and, repeats can mean a £30,000 penalty or prosecution.
How Much Does Tenant Referencing Cost?
Tenant reference checks typically cost £15 to £40 per applicant. Basic checks covering identity and credit sit at the lower end, while full references adding income, affordability and residential history checks cost more. Joint applicants are referenced separately, so the cost doubles, and guarantor checks usually add £10 to £20 each. Under the Tenant Fees Act 2019, landlords or agents must cover this cost in England, not the tenant.
Why Would a Tenant Fail a Reference Check?
A failed reference check doesn’t always mean a bad tenant. The most common reasons when a tenant fails the checks are:
- Income below the threshold: commonly 2.5 to 3 times the annual rent (not legally required but a common benchmark).
- Poor or thin credit history: missed payments, County Court Judgements (CCJs), or no borrowing record
- A poor landlord reference: past arrears, damage or disputes
- Unstable income or no proof of address: such as zero-hours work, recent self-employment or a move from abroad.
- Inconsistent information: the application doesn’t match the checks.
In many cases, a guarantor or alternative evidence, such as bank statements, can still make the tenancy work.
Tenant Referencing Red Flags
To avoid tenancy fraud, the most common referencing red flags or warning signs and what they show are mentioned in this table:
Red flag | Why it matters |
Reluctance to complete referencing | May be hiding something, such as poor credit or a past eviction |
Vague answers about work or living situation | Can signal an unstable income or an unverifiable history |
Documents that don’t match | Mismatched names, addresses or payslips are a common sign of fraud |
Income that can’t be verified | Payslips are easy to fake, so check against bank or payroll data |
Pressure to skip checks | Offers to pay extra upfront instead can’t replace referencing, but rent in advance is now limited to one month. |
Can a Landlord Legally Refuse a Tenant?
Yes, but only for reasons based on the individual’s circumstances, such as affordability, credit or references. From 1 May 2026, landlords and agents in England cannot refuse a tenancy because an applicant receives benefits or has children, and blanket “No DSS” or “No children” policies are unlawful. Refusing someone because of a protected characteristic, such as race, disability or religion, also breaches the Equality Act 2010. And councils can fine landlords and agents who break the rules.
Let Estate Agents Ilford Handle Your Tenant Referencing
With our property management service, tenant referencing is part of the package. Every applicant is referenced through Goodlord, covering ID, credit, income and residential history, at no extra cost to you.
Get a free Landlord Consultation
Final Thoughts
Thorough tenant referencing protects your rent, your property and your legal position. Checking every applicant against the same criteria, keeping proper records and knowing when to ask for a guarantor make it easier to choose the right tenant and to show you acted fairly.
