Tenant References

Tenant referencing

Tenant referencing is a set of checks to assess whether someone is likely to pay the rent and look after the property. It will not produce a “perfect tenant”, but it does help you spot the obvious risks before you hand over the keys.

In practice, good referencing comes down to three things:

  • having clear criteria (what counts as acceptable),
  • doing the right checks (ID, affordability, history), and
  • making decisions the same way for everyone (so you can explain them if you ever need to).

What referencing can and can’t do

Referencing can help you:

  • confirm identity and the basic details the applicant gave you
  • check whether the rent looks affordable based on verified income and commitments
  • flag common warning signs (for example, undisclosed addresses or public credit markers)
  • verify rental history via a landlord/agent reference
  • reduce fraud risk (fake ID, fake payslips, or someone applying under another person’s identity)

Referencing cannot:

  • predict how someone will behave after they move in
  • guarantee the rent will always be paid on time
  • replace good management (clear tenancy terms, routine inspections, and fixing repairs promptly)

Set your criteria before you advertise

Decide your criteria upfront, write them down, and stick to them. It stops you from “moving the goalposts” halfway through and makes decisions much easier to justify.

Typical criteria include:

  • an affordability threshold based on verified income
  • payment history requirements (for example, no current serious arrears or unresolved judgments)
  • suitable household size for the property
  • rental history, where you can get it
  • guarantor requirements, if you use guarantors

From 1 May 2026, you must not use criteria or processes that exclude (or put off) applicants because they have children or because they receive benefits**. You can still conduct affordability checks, but benefit income must be treated as income in a neutral manner. GOV.UK

What to check as part of referencing

Identity and fraud checks

You are trying to answer two questions:

  • is this person who they say they are?
  • do the documents look genuine?

Common checks:

  • photo ID (passport or driving licence)
  • proof of address (recent utility bill, council tax bill, bank statement)
  • address history (often 3 years)
  • basic consistency checks (names, dates, and addresses match across documents)

Most fraud is caught when something does not add up, or when the applicant is pushing you to rush. If anything feels off, slow down and verify independently. For example, confirm an employer’s identity using official contact details, not a phone number the applicant provides.

Right to Rent

Right to Rent checks are separate from referencing, but they happen around the same time.

If you are a landlord (or agent) letting in England, you must carry out Right to Rent checks and follow the latest Home Office guidance and document lists. See the Right to Rent section for more information.

Affordability and income

A practical approach to establishing whether they can afford the ongoing rental payments might include:

  • verify income (payslips, contract, employer reference, SA302s/tax overview for self-employed, benefit award letters where relevant)
  • look at regular commitments (loans, car finance, child maintenance, credit commitments)
  • use one method consistently (for example, a rent-to-income ratio or an income multiple)

Try not to turn it into a spreadsheet contest. You are aiming for “sustainable rent”, not a flawless financial profile.

A typical rent-to-income ratio might be [monthly rent] x 35, but you can set your own threshold.

Credit and public record checks

A credit or public-records style check can help identify:

  • CCJs
  • bankruptcies/insolvency markers
  • address links (useful for spotting undisclosed addresses)

Do this with the applicant’s knowledge/authority, and be clear on your application form what you will check and why.

Landlord/letting agent reference

A landlord reference primarily concerns how the tenant managed the tenancy.

Useful questions:

  • tenancy start and end dates
  • rent amount and whether it was paid on time (and any arrears position)
  • general care of the property
  • any serious disputes (keep it factual)
  • whether they would rent to the tenant again

One caution: treat a reference from the current landlord with care. If that landlord wants the tenant to move out, they may paint a rosier picture than the reality warrants.

Employer reference

An employer reference usually confirms:

  • employment status (permanent, fixed-term, probation)
  • salary and length of employment
  • any known changes that would affect income (if they are willing to confirm)

If someone is newly employed, on probation, self-employed, or has variable income, you will often need more evidence. That might be a longer run of bank statements, an accountant reference, recent contracts, or a guarantor.

Sanctions checks (letting agents)

If a letting agent is involved, remember agents have reporting obligations under UK financial sanctions rules, including checks against the UK Sanctions List. There is no monetary threshold for this duty. GOV.UK

Private landlords are not usually treated as “letting agents” for this purpose, but if you use an agent, ensure they have a compliant process. A landlord may optionally run the checks, which are quick, easy and free, using this search tool: https://search-uk-sanctions-list.service.gov.uk

Many referencing services include the search.

Using a referencing service vs doing it yourself

DIY referencing

DIY referencing can work well when:

  • the applicant’s income and situation are straightforward
  • you are comfortable checking documents and chasing references
  • you have time for admin

It is cost-effective, but it takes time and requires consistency.

Referencing services

A referencing service can be quicker and often bundles:

  • identity/address verification checks
  • public record/credit-style checks
  • sometimes a risk score based on their data
  • optional chasing of landlord/employer references

Even with a service, you still need to apply common sense. A “pass” does not remove your responsibility to make a reasonable decision.

Data protection and consent

Referencing involves personal data, often including ID and financial documents. At a minimum:

  • give applicants a clear privacy notice explaining what you collect, why, and who you share it with ICO privacy notice generator
  • collect only what you actually need
  • store it securely (especially scans of ID and bank statements)
  • delete it when you no longer need it (UK GDPR includes a storage limitation principle: do not keep personal data longer than necessary) ICO

If you use a fully managing letting agent and you only receive rent statements, you may fall within an ICO “accounts and records” exemption. Referencing, though, is usually wider than that. ICO

What if the applicant “fails” referencing?

A fail does not automatically mean “bad tenant”. It often means “higher risk” or simply “we could not verify something”.

Your options:

  • decline the application (and keep a brief note of the reason)
  • accept with safeguards, such as:
    • a suitable guarantor
    • rent paid monthly by standing order
    • closer management early on (for example, routine inspections)
  • ask for more evidence if the issue is verification rather than affordability

Be careful not to slide into unlawful discrimination by quietly applying different standards to people you think have children or may be claiming benefits.

Emergency contact details

It is sensible to ask the successful tenant for a close family member or friend’s contact details:

  • for genuine emergencies, or
  • if the tenant disappears or abandons the property without notice

This is not a guarantor. It is just a practical way to reach someone.

Students and first-time renters

Students and first-time renters often have limited rental history and little on their credit file. That does not automatically make them risky, but it does mean you need to rely on different evidence.

Common approaches:

  • a guarantor (often a parent) with clear, consistent criteria
  • evidence of student status and funding
  • affordability based on verified funding/income, not assumptions

If you are asked to give a reference for your tenant

There is generally no legal requirement to provide a landlord reference. Many landlords set a simple rule, such as “we only confirm dates and rent amount” or “we do not provide references”.

If you do provide a reference:

  • get the tenant’s consent before sharing personal information
  • stick to facts you can evidence (dates, rent figures, arrears position, deposit deductions)
  • avoid exaggerated opinions or insults, which can create defamation risk
  • keep a copy of what you sent in case it is disputed later

A short, factual reference is usually the safest route.

Last Reviewed: