Why robust tenant referencing is more important than ever

Comprehensive tenant referencing has always been key when it comes to selecting the right person for your property – and it’s set to become more important than ever when the new Renters’ Rights Act comes into force. 

The loss of Section 21 – the so-called ‘no fault’ eviction, means it will be harder to repossess your property if something goes wrong once the Act is in force. 

Tenants will also be able to build up greater levels arrears before you can take action under the alternative Section 8 grounds-based process.   

Under the new rules, tenants will be able to withhold rent for up to three months before you can apply for repossession – up from two months under the current regime. 

And with every possession claim now needing a court hearing, even once you hit that threshold, it could be months before the case progresses, with current waiting times from serving notice to possession already six months – and that’s before the new rules come in. 

It’s also important to remember that rent guarantee insurance policies will require a robust set of checks for your policy to be valid. 

Against this backdrop, it is clear that a basic credit check is not going to be sufficient to establish whether a potential tenant is reliable - and can afford to rent your property on an ongoing basis. 

What should I be checking to protect myself?

Reviewing your tenant referencing processes has been a key element of NRLA advice when it comes to preparing for the changes up ahead, and we are advising landlords to check: 

• Proof of Identity: This is used to verify the tenant is who they say they are, using documents such as a passport or a driving license. 
   
• Proof of Income and Affordability:  Confirming the tenant has the financial means to pay rent can include checking their employment status, getting confirmation of income from their employer and reviewing bank statements.  
   
• Employment Reference: You can verify the tenant's employment details directly with their employer. If a tenant is self-employed, you may need to see proof of income over a 12-month period in business. If they've been self-employed for less than a year, a guarantor may be required. This is someone who will be responsible for the rent payments if the tenant doesn’t pay. You may also ask for a guarantor even if your potential tenant passes the checks, if you have any concerns they may be unable to pay. 
   
• Credit Check: A credit check will reveal any history of missed payments or outstanding debts, as well as any outstanding County Court Judgements.
   
• Reference from a previous landlord: This will give you an unbiased perspective on a tenant's rental history, including whether they paid rent on time and if they caused any damage to a previous property. 
   
• Right to rent: You’ll also need to check the tenant’s right to rent in the UK. If you rent your property to someone who does not have the right to rent in the UK, you could be fined up to £3,000 per tenant or even face a prison sentence. 

Do I need to do these checks myself?

This is a decision that is personal to you. You can carry out the checks yourself or employ someone to carry them out for you.

That is where the NRLA comes in.

Through our partnership with Goodlord, we offer comprehensive tenant references, which include all of the checks mentioned above and more.

Goodlord’s anti-fraud technology streamlines the referencing process, enabling most checks to be completed within 24 hours. By pulling verified data directly from trusted sources, including banks, payroll systems, and HMRC, it reduces risk and eliminates the need for tenants to submit documents themselves.

All of this helps ensure you place high-quality tenants in your properties, minimising the risk of eviction.

Pricing for tenant checks and credit checks available through the NRLA are as follows: 

NRLA Tenant Referencing pricing

*ID Upgrade Bolt-On includes a digital Right to Rent check however please note this is only applicable to UK or Irish passport holders

Prices for Credit Checks