What is tenant referencing?
Tenant referencing is the process of checking information about a prospective tenant before deciding whether to proceed with a tenancy.
It can help landlords assess affordability, employment, income, rental history and other information relevant to their decision.
Referencing cannot guarantee that a tenancy will be problem-free, but it can give the landlord more information on which to base their decision.
Why is tenant referencing important?
Choosing a tenant can affect rent payments, the condition of the property and the overall success of the tenancy.
Referencing gives landlords a structured way to review important information before committing to an applicant.
What does tenant referencing usually include?
The exact checks can vary between providers and applicants, but a referencing process will commonly consider several areas.
Affordability checks
Affordability checks help assess whether the applicant's income appears sufficient for the proposed rent.
Referencing providers may use rent-to-income calculations or similar criteria when assessing affordability.
Where an applicant does not meet the required affordability threshold, a guarantor may sometimes be considered.
Employment and income checks
Employment and income checks can help confirm how the prospective tenant earns their income.
Depending on the applicant, this might include employment status, salary, job role, start date or other supporting information.
Previous landlord references
A previous landlord reference can provide useful information about an applicant's rental history.
Where available, this may help indicate whether rent was paid as expected and whether the previous tenancy ended satisfactorily.
Credit history checks
Credit checks may highlight information relevant to the landlord's decision, including adverse credit history or County Court Judgments.
An issue appearing during a credit check does not necessarily mean that the landlord must reject the applicant.
Depending on the circumstances, you may instead want additional information, a suitable guarantor or a different arrangement before deciding whether to proceed.
Guarantor referencing
A guarantor is not required for every tenancy, but there are circumstances where one may be useful. If a guarantor is going to support the tenancy, they should also be referenced so you can assess whether they are suitable.
When should landlords reference tenants?
Referencing will usually take place after you have identified an applicant you are interested in progressing.
It should be completed before the tenancy is finalised and before the tenant moves into the property.
Can landlords reference tenants themselves?
Landlords can ask applicants for information directly, but many choose to use a dedicated referencing provider through an online letting service.
This provides a more structured process for collecting and reviewing the information required.
It can be particularly useful for self-managing landlords who do not want to use a traditional letting agent but still want a formal referencing process.
What happens if a tenant fails referencing?
If an applicant does not meet the referencing criteria, review the reason before deciding what you want to do.
Some issues may be capable of being resolved with additional information or a suitable guarantor. In other circumstances, you may decide not to proceed and instead consider another applicant.
Tenant referencing and Right to Rent checks
Tenant referencing and Right to Rent checks are different parts of the tenancy setup process.
Referencing is used to assess information about the applicant and their suitability for the proposed tenancy.
Right to Rent is a separate check relevant to landlords letting property in England and needs to be dealt with before the tenancy begins.
Do not assume that completing financial or employment referencing automatically means the separate Right to Rent process has been dealt with.
TENANT REFERENCING WITH LETLAUNCH
Unlimited tenant & guarantor
referencing included.
Rightmove Advertising
For landlords who want advertising and are comfortable arranging their own referencing and tenancy setup.
Full Tenancy Setup
For landlords who want the referencing and tenancy setup process handled through letlaunch.
