A Landlord's Guide to Tenant Referencing Checks

By Deposit Protection Schemes: What Renters Need to Know
Comments 35
29 Aug 2026

A Landlord's Guide to Tenant Referencing Checks

Why Referencing Is the Bedrock of a Good Tenancy

Every landlord has heard the horror story: a tenant who seemed perfectly charming, paid the first month, then vanished into a fog of missed payments and a kitchen that will never be the same again. The unhappy truth is that most of these situations are avoidable. Thorough referencing is not about distrusting people — it is about confirming that the person moving into your property can genuinely afford to live there and has a track record of looking after a home.

For a relatively modest outlay, you can gather enough evidence to make a confident, informed decision. Skip it, and you may find yourself chasing arrears through the courts, funding repairs out of your own pocket, and losing months of rental income. Here is what a robust referencing process should cover.

Right to Rent and Identity Checks

In England, landlords must carry out Right to Rent checks before granting a tenancy — it is a legal requirement under the Immigration Act 2014, and getting it wrong can result in a civil penalty. Ask to see original documents, such as a British or Irish passport, or a share code combined with a passport or biometric residence permit for those with limited immigration status.

Copy the documents, date the copy, and keep it for the duration of the tenancy plus two years. Do this for every adult who will live in the property, not just the named tenant.

Identity checks should also confirm that the person in front of you is the person on the paperwork. Ask to see a driving licence or utility bill bearing the same name and address, and consider an electronic identity check through a reputable referencing service. It takes minutes and closes an obvious gap.

Affordability: Income and Employment Verification

The single most useful measure of whether rent will be paid is whether it can be comfortably afforded. A common benchmark is that a tenant's gross annual income should be at least 30 times the monthly rent — so a property at £1,200 per calendar month needs a household income of around £36,000. Some landlords accept 2.5 times the annual rent instead; the point is to have a rule and apply it consistently.

For employed tenants, ask for:

Recent payslips covering the last three months
A P60 or an employer's reference confirming salary and contract type
Bank statements showing salary credits — these are far harder to falsify than a payslip alone

For self-employed applicants, request two to three years of accounts or tax returns, plus an accountant's reference where available. Look closely at whether the business is trading profitably now, not simply that it exists.

Open banking checks, where the applicant consents to share categorised transaction data, can give a clear picture of income stability, regular outgoings, and whether they habitually miss payments. Always obtain explicit written consent before accessing any financial data.

Credit History and Previous Landlord References

A credit check reveals county court judgments, bankruptcies, individual voluntary arrangements, and a pattern of missed payments. One old default may be excusable with context; several recent judgments suggest a risk you should price in or decline.

A reference from a previous landlord or letting agent is valuable, but only if you ask the right questions. Rather than accepting a generic letter, speak to them directly and ask:

Was the rent paid in full and on time, every month?
Did they give proper notice, and would you rent to them again?
Was the property left in good condition?
Were there any complaints from neighbours?

Be cautious with references from friends or family posing as landlords. Where possible, confirm the address and cross-check it against a tenancy agreement or deposit record.

When and How to Use a Guarantor

Applicants with thin credit files — students, first-time renters, those new to the UK, or people returning to work — often make excellent tenants but fail standard affordability tests. A guarantor bridges that gap.

A suitable guarantor should be a UK-based homeowner with a solid credit history and sufficient income, typically around 36 times the monthly rent. Crucially, the guarantee must be documented in a deed of guarantee, signed as a deed, and ideally reviewed by a solicitor. A guarantee that is poorly drafted may be unenforceable when you need it most.

Explain to the guarantor exactly what they are signing: they are liable for unpaid rent and, depending on the wording, for damage or legal costs. Transparency here protects everyone.

Pulling Your Process Together

Set out your criteria before you advertise, and apply them to every applicant. Remember that the Tenant Fees Act 2019 caps holding deposits at one week's rent and tenancy deposits at five weeks' rent for most assured shorthold tenancies, and that deposits must be protected in a government-approved scheme within 30 days.

Handle personal data in line with data protection rules and delete what you no longer need. Avoid blanket bans on applicants receiving benefits, which can amount to indirect discrimination under the Equality Act 2010 — assess affordability case by case instead.

Referencing is not a box-ticking exercise. It is the moment you decide who will be living in your property, paying your mortgage, and shaping your experience as a landlord for the next year or more. Do it thoroughly, keep clear records, and you will find that the right tenant is worth every minute of the effort.

Landlord Advice

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5 Comments

Robert Sonny says Jul 21, 2024 at 10:00am

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Reply
- John Abraham says Jul 21, 2024 at 10:00am
  
  I must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system
  Reply
  - Robert Sonnysays Jul 21, 2024 at 10:00am
    
    I must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system
    Reply
Robert Sonny says Jul 21, 2024 at 10:00am

I must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system
Reply

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