A Guide to Tenant Referencing for Landlords

Tenant referencing for landlords can provide valuable information about a prospective tenant's rental history, employment status, and financial stability.

As a landlord, you should always carry out tenant background checks before letting your property to new tenants. This will help provide peace of mind that your tenants are reliable and trustworthy. It may also be a requirement for rent guarantee insurance.

If you're new to the world of property letting, the NRLA has a wide range of pre-tenancy resources for landlords that will help you ensure everything's in order before your tenants move in.

As well as comprehensive guidance and tenant referencing form templates for if you want to carry out the background checks yourself, you'll also have access to the NRLA's speedy and detail-oriented tenant referencing services.

Join the NRLA today for unlimited access to resources, guides, templates, and advice that will support you throughout your tenancy and beyond.

What is tenant referencing?

Tenant referencing is a broad term that refers to the checks that a landlord or agent performs when assessing the suitability of a potential tenant. Depending on the landlord, this can range from a simple credit check to a comprehensive background check on any prospective tenants.

Why carry out tenancy reference checks?

Referencing is not a legal requirement for letting your property out, but it is one of the most worthwhile things you can do as a landlord to protect the value of your investment.

Almost all tenants pay their rent on time and look after the property, but if your tenant is in the small minority who don't, it can be intensely frustrating and expensive to deal with.

By referencing your prospective tenants before you grant a tenancy, you maximise the chances of getting one of the many responsible tenants and minimise the risks to you and your property.

How should you go about referencing your tenants?

This will depend on the level of involvement you want to have in the referencing process, as well as the level of detail you want to get about your tenants.

Some landlords are happy with a simple credit check to ensure the tenant has no outstanding County Court Judgements, while others may want to ask previous landlords or current employers if the details the tenant provided are accurate. 

If you have rent guarantee insurance, you may be required to complete thorough referencing to comply with the insurance conditions.
 

Having someone reference tenants on your behalf

The most common way to reference your tenants is to employ someone to perform the reference for you.

Whether it is your letting agent or a referencing service, they will complete the tenant screening background check on your behalf, saving you valuable time and ensuring no details are overlooked.

The NRLA's full tenant referencing service offers speed, accuracy, and attention to detail, making it a reliable choice for landlords. Each application is manually assessed by trained personnel to ensure the information provided is accurate and legitimate.

How do I check the applicant can afford to pay the rent?

Generally to establish they can pay the rent you will apply a simple test of affordability. 

Multiply the rent by 30; if that figure is equal to or less than their annual salary then the rent is affordable.

In some other cases your insurance provider may have specific affordability criteria that you need to meet to receive cover. Check your insurance policy to make sure you do this. 

You will then want to verify the details the applicant provided. This can be done through an employer's reference, or asking for copies of recent bank statements. 

Performing the reference yourself

If you are performing the reference yourself it will be up to you to decide how in-depth your investigations are. However, there are certain things you'll want to look into if you are to properly assess your prospective tenants.

Use this tenant referencing checklist to get you started:

• Credit check: There are plenty of online sites you can use to carry out credit checks on potential tenants. A history of missed payments or large debts could be a cause for concern.
• Proof of income: This could be a recent payslip, bank statement, or any other document that shows proof of the tenant’s annual income. This will help you determine whether they can afford the rent and are likely to pay on time. Please note that it should include all of the tenant's income, including proof of any benefits they receive. 
• Employer reference: Obtaining a reference from the potential tenant's employer will confirm their employment history and help to determine whether their income will cover the rental payments.
• Proof of identity: Request photo ID in the form of a driving licence or passport to prove that the applicant is who they say they are.
• Previous landlord reference: If the tenant has previously lived in rental properties, references from their previous landlords will let you know whether they are reliable and trustworthy.
• Right to rent: You’ll 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 can get a fine of up to £3,000 for each tenant or be sent to prison.

There are several stages to the referencing process, which means it can be challenging to navigate on your own.

If you are a member of the NRLA, you'll gain access to a number of tools designed to help you reference prospective tenants with ease, including tenancy application form templates to help you collect the information you need and guidance on what to do if a tenant is unable to provide references.

Get peace of mind with the NRLA's tenant referencing services

Performing tenancy reference checks can be time-consuming and difficult to get right - so let the NRLA handle it for you.

As a member, you have access to our comprehensive tenant referencing services for a discounted price of just £21. The online system is quick and easy to use and you typically receive your tenant check results within 48 hours.

You also have unlimited access to our extensive range of tenant referencing tools and resources. These include:

• Reference request templates
• Tenancy application forms
• Guidance on what to do if a tenant can't provide the information you've requested
• a credit check to ensure the tenant has no outstanding county court judgements and a good credit rating; and
• a tenancy application form that includes enough information for you to make a decision on their suitability; and
• a reference from the prospective tenants previous landlord; or
• a character reference from an employer
• evidence they can afford the property

Start your tenant referencing journey with confidence by joining the NRLA today.

Discrimination and rental applications: factors you must not consider

Remember when you reference your applicants, and decide who to enter a tenancy agreement with, you must not discriminate against someone, directly or indirectly, based on the following protected characteristics:

• Disability
• Gender reassignment
• Pregnancy and maternity
• Race
• Religion or belief
• Sex
• Sexual orientation

These are protected characteristics under the Equalities Act 2010 and, should you base your decision on one of these characteristics, you may find yourself on the wrong end of a legal challenge.

There are two other protected characteristics in the Equalities Act 2010 - age and marriage/civil partnership status - but these are not protected characteristics for housing. So, should you wish, you can refuse someone who you believe is too old or too young to live in the property.

Direct and indirect discrimination

Discrimination is a tricky area as the law covers direct forms of discrimination and indirectly discriminating against a group.

Direct discrimination occurs in relatively straightforward cases where someone deliberately treats another person differently because of one or more of these characteristics. For example, refusing to let a property to someone because of the colour of their skin would be an example of direct discrimination.

On the other hand, indirect discrimination occurs when a policy, practice, or rule that applies to everyone disproportionately affects people with a particular protected characteristic. This can be unintentional and much harder to identify.

For example, court cases have found that blanket bans tenants who receive benefits is a form of indirect discrimination against women and people with disabilites because they are more likely to be in receipt of benefits. 

Avoiding perceived discrimination

Rather than running the risk of indirect discrimination, it is better to stick to making your decision based off of a set of clear criteria that are based on their ability to fulfill the tenancy and stay long term. For example you should generally consider:

• Their ability to pay the rent in full based on their entire income (including any benefits);
• How long they intend to live in the home for;
• Any history of rent arrears;
• Whether their current landlord references damage or untidyness. 

Renters' Rights Act: Discrimination against families and tenants receiving benefits

In addition to the existing rules around discrimination, the Renters' Rights Act (RRA) introduces new anti-discrimination rules that apply to assured and regulated tenancies from 1 May 2026, and to occupation contracts in Wales from 1 June 2026. 

What forms of rental discrimination are banned under the Renters' Rights Act?

The Act bans discrimination against –

• Tenants with children under the age of 18; and
• Tenants in receipt of benefits.

How does it ban this?

The RRA achieves this by preventing landlords (or anyone acting on their behalf) from discriminating against these applicants by preventing a prospective tenant from -

• enquiring whether the dwelling is available for let or
• accessing information about the dwelling or
• viewing the dwelling in order to consider whether to seek to rent it or
• entering into a tenancy of the dwelling;

- if it is because:

• A child aged under 18 may live with or visit them or
• They receive or may receive benefit payments.

In addition, landlords cannot apply a provision, criteria, or practice that could make someone with children or a benefit claimant less likely to enter into a relevant tenancy of the dwelling than someone else.

How does this work in practice?

You should ensure that your tenant selection process is consistent, and does not inadvertently discriminate against families or tenants receiving benefits. For example:

• Adverts should not include phrases like 'would suit young professionals', 'no dss', 'no children allowed.'
• Referencing should take into account all of a tenant's income including any benefits
• Affordability criteria should not change depending on whether someone receives benefits or not. 

As long as your process is consistent, and doesn't discriminate, then you may continue to select the most appropriate tenant. This includes choosing a tenant who can best afford to pay the rent with a good credit history, or the one who plans to stay longest in the property.