Tenant Referencing: What to Check and How to Do It Properly

Good tenant referencing is the single most effective way to avoid rent arrears, property damage, and costly evictions. Skipping it to "fill the property quickly" almost always costs more in the long run.

What to check

A thorough reference should cover five areas:

1. Credit check

A credit check reveals CCJs (County Court Judgements), IVAs, bankruptcy, and payment defaults. It doesn't show a "score" — you'll see specific adverse entries. One missed phone bill from 3 years ago is different from multiple recent CCJs. Context matters.

2. Employment verification

Contact the employer directly (don't rely on letters the applicant provides — they can be forged). Confirm: job title, length of employment, annual salary, and whether employment is permanent or contract. Self-employed applicants should provide 2 years of SA302 tax calculations or certified accounts.

3. Previous landlord reference

Ask the previous landlord, not the current one. The current landlord may give a glowing reference just to get rid of a problem tenant. Ask: did they pay rent on time? Did they look after the property? Would you rent to them again? Was the full deposit returned?

4. Right to Rent check

You're legally required to verify every adult tenant's right to rent in England. This means checking original identity documents (passport, biometric residence permit, or share code) before the tenancy starts. Failure to check can result in a civil penalty of up to £20,000 per tenant.

5. Affordability assessment

The general rule: gross annual income should be at least 2.5x the annual rent. For a property at £1,000/month (£12,000/year), the tenant needs to earn at least £30,000. If they have a guarantor, apply the same test to the guarantor.

DIY vs referencing agency

You can do referencing yourself (credit checks cost £10-20 per person via services like OpenRent or Experian), or use a full referencing agency (£20-50 per person) that handles everything and provides a recommendation. For self-managing landlords, a referencing agency saves time and provides a paper trail.

Red flags

• Reluctance to provide references or identity documents
• Pressure to move in immediately ("can I move in this weekend?")
• Offering to pay several months' rent upfront (can indicate difficulty getting regular references)
• Gaps in rental history with no explanation
• Mismatches between stated income and employment verification

What you cannot do

Under the Equality Act 2010, you cannot refuse a tenant based on protected characteristics: race, religion, sex, disability, sexual orientation, pregnancy, or age. Your referencing criteria must be applied consistently to all applicants.