Tenant referencing is arguably the most important step when renting out a property. Before agreeing to let your property to a new tenant, it is sensible to check whether the applicant appears suitable, can afford the rent and has provided the information needed to proceed. With letlaunch, landlords are granted unlimited tenant and guarantor referencing with our Full Tenancy Setup package.

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 usually helps landlords assess affordability, employment, income, rental history and other relevant information. Referencing does not guarantee that a tenancy will be problem-free, but it can help landlords make a more informed decision.

Why is tenant referencing important for landlords?

Referencing is important because choosing the right tenant can affect rent payments, property condition and the overall success of the tenancy. A good referencing process helps landlords check whether an applicant is likely to afford the rent and whether there are any issues that should be considered before the tenancy begins.

What does tenant referencing usually check?

The exact checks can vary depending on the referencing provider and the circumstances, but tenant referencing will often look at the applicant's income, employment, rental history and credit profile. In some cases, a guarantor may also be referenced.

• Identity details
• Right to Rent checks
• Current address information
• Employment status
• Income and affordability
• Previous landlord reference, where available
• Credit history checks
• County Court Judgment information, where available
• Guarantor details, where required

1. Affordability checks

Affordability checks help landlords understand whether the tenant's income appears sufficient for the rent. Referencing providers often use rent-to-income calculations to assess whether the applicant is likely to be able to afford the monthly rent. If the applicant does not meet affordability criteria, a guarantor may sometimes be considered.

2. Employment and income checks

Employment and income checks can help confirm how the tenant earns their income. This may include employment status, salary, job role, start date or other relevant information. For self-employed applicants, different evidence may be needed, such as accounts, tax documents or accountant confirmation.

3. Previous landlord references

A previous landlord reference can help show whether the applicant has rented before and whether there were any known issues during the tenancy. This may include whether rent was paid on time and whether the previous tenancy ended satisfactorily.

4. Credit history checks

Credit checks can highlight information that may be relevant to a landlord's decision, such as adverse credit history or County Court Judgments. A credit issue does not always mean an applicant should be rejected, but it may mean the landlord wants more information, a guarantor or a different approach before proceeding.

5. Guarantor referencing

A guarantor may be requested if the tenant does not meet affordability requirements, has limited rental history, is a student, is self-employed with limited evidence, or has another factor that makes a guarantor appropriate. If a guarantor is used, the guarantor should also be referenced so the landlord can assess whether they are suitable.

When should landlords reference tenants?

Landlords usually reference a tenant after the applicant has viewed the property and the landlord has decided they may want to proceed. Referencing should take place before the tenancy agreement is completed and before the tenant moves in. This helps avoid setting up a tenancy before key checks have been reviewed.

Can landlords reference tenants themselves?

Landlords can ask applicants for information themselves, but many prefer to use a tenant referencing provider through an online letting agency, such as letlaunch. A referencing provider can help collect and review information in a more structured way. This can be especially useful for self-managing landlords who want to avoid using a traditional letting agent but still want a proper referencing process.

What happens if a tenant fails referencing?

If a tenant does not pass referencing, the landlord should review the reason carefully before deciding what to do next. In some cases, the issue may be resolved with additional information or a suitable guarantor. In other cases, the landlord may decide not to proceed and to consider another applicant.

Should landlords always use a guarantor?

Not always. A guarantor is not required for every tenancy. However, a guarantor may be useful where the applicant has limited income evidence, does not meet affordability requirements, has limited rental history or is otherwise considered higher risk. The decision will depend on the applicant, the property and the landlord's own requirements.

Tenant referencing and Right to Rent checks

Tenant referencing and Right to Rent checks are not the same thing. Referencing helps landlords assess whether an applicant is suitable for the tenancy. Right to Rent checks are a separate requirement for landlords in England and should be completed before the tenancy begins. Landlords should make sure they understand which checks are needed and when they must be carried out. letlaunch ensures all required checks are completed as part of the tenant referencing process.

How letlaunch helps with tenant referencing

letlaunch is designed for landlords who want to find tenants without paying traditional letting agent fees. Our Full Tenancy Setup package includes unlimited tenant and guarantor referencing, which can be especially helpful if an applicant does not proceed, fails referencing, or you need to assess more than one applicant before choosing the right tenant. All other letting agencies (both online and traditional) charge add-ons on a per reference basis, making costs increase for landlords.