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 for renting 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.

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.
• 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 youare 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.