Tenant referencing: what it checks, and what to do when it fails

In England, tenant referencing is partly a market risk check and partly a compliance process, but the same word is used differently across England, Wales, Scotland and Northern Ireland. Right to Rent is England-only; the Housing Act 2004 Part 3 reference condition applies in England and Wales; and the Renters’ Rights Act 2025 affordability, benefits and rent-in-advance rules apply in England, Wales and Scotland, not Northern Ireland.

What does tenant referencing actually check?

Tenant referencing usually checks identity, address history, credit information, income or employment, previous renting conduct and, in England only, Right to Rent status. A tenant reference check in the UK is not a single statutory checklist: commercial tenancy referencing, landlord reference checks and tenant screening UK products vary by provider, but HomeLet describes the market norm as assessing “a tenant's credit history, employment status, and previous rental history to determine their eligibility to rent a property.” Goodlord’s referencing product is narrower and more structured, saying its “key pillars” are “Identity verification, credit, residential, and income checks,” with fraud and compliance checks added. In England, Right to Rent is separate from affordability or landlord referencing checks, because GOV.UK says: “You must check that a tenant or lodger can legally rent your residential property in England.” Credit depth also varies: Experian says a landlord soft check will not show current borrowing, while Let Alliance/HomeLet VISTA says it uses “full credit files from the Credit Bureau.”

Is tenant referencing a legal requirement?

Tenant referencing is not a universal legal requirement, but some landlords or agents must take particular checks in particular nations or licensing regimes. In England, ordinary references are treated as optional: the government’s How to Let guide says, “You may want to get references from your tenant’s former landlords or agents to help you decide whether they are reliable.” That is different from Right to Rent, which is mandatory in England only; GOV.UK says, “You do not need to check a tenant’s right to rent property in Wales, Scotland or Northern Ireland.” In England and Wales, a selective licence under Part 3 of the Housing Act 2004 must include conditions requiring the licence holder “to demand references from persons who wish to occupy the house.” In Scotland, letting agents must agree with the landlord “what references you will take and checks you will make,” but that is not a rule requiring a credit check for every tenancy. Northern Ireland has no general statutory referencing regime, though some HMO licence conditions require references.

Which companies do tenant referencing?

Tenant referencing companies in the UK include HomeLet, Let Alliance, Goodlord, LetHQ, NRLA services and many letting-agent platforms, but there is no official licensed list of commercial tenant-reference-check companies. Credit data may come through Experian, TransUnion or Equifax: Experian says landlords can ask for credit information from “any (or all) of the UK’s three credit reference agencies— Experian, TransUnion and Equifax.” For England-only Right to Rent identity work, a landlord may use a certified digital identity service provider, but GOV.UK says it “will not be mandatory” to use a certified IDSP. In England and Wales, landlords and agents cannot charge the tenant a referencing fee, because the permitted-payment regimes exclude it; the England guidance states, “You cannot charge your tenant any payment that is not on this list.” Northern Ireland is different: Housing Rights says a landlord can pass on the credit-check cost to the applicant “but without any extra charges.” Abodient can store the tenant’s deposit scheme, lease records and tenancy documents so the referencing outcome sits with the letting file rather than in a separate email trail.

How do letting agents work out whether a tenant can afford the rent?

Letting agents usually test affordability by comparing verified income with rent, often using 2.5 times annual rent or 30 times monthly rent, but no UK statute fixes those multiples. The Renters’ Rights Act 2025 expressly allows income to be considered in England, Wales and Scotland: for England, it says, “Nothing in this Chapter prohibits taking a person’s income into account when considering whether that person would be able to afford to pay rent under a relevant tenancy.” The same scheme says the rental-discrimination prohibition applies in England, Wales and Scotland, not Northern Ireland: “This prohibition of rental discrimination will apply in England, Wales and Scotland.” In England, benefit income must be counted like other income, because GOV.UK says: “For example, if you check if a tenant can afford the property, you must include income from benefits in the same way as other income.” Market practice is more mechanical: Goodlord requires income of “at least 2.5 times the annual rent,” while HomeLet says salary must be “30 times higher than the monthly rent.”

What questions should you ask a previous landlord?

Ask a previous landlord whether the tenant paid rent on time, left arrears, looked after the property, caused complaints, breached the tenancy and whether the landlord would rent to them again. No statute sets the landlord reference questions, and the Equality Act 2010 is the guardrail: in England, Wales and Scotland, a person disposing of premises “must not discriminate” against the applicant. The best landlord reference check is factual, dated and narrow: tenancy start and end dates, rent amount, rent arrears, deposit deductions, notice history, serious neighbour issues, property condition at check-out and whether the tenant gave honest information. Burnley’s selective-licensing reference form asks, “Are there any outstanding rent arrears at this property?” Landlord Vision’s practical question is sharper: “Would you be happy to rent a property to this tenant again?” Get the applicant’s written consent before asking, because many referees will not disclose personal information without authority, and landlords who process references may need to pay the ICO data protection fee.

Is there a template for a landlord reference?

There is no national prescribed landlord reference template, although councils, associations and referencing companies publish tenancy reference examples and local forms. In England and Wales, the statutory selective-licensing rule is only that the licence must require the holder “to demand references from persons who wish to occupy the house”; it does not prescribe a universal landlord written statement template. Local practice can still matter. Salford says its reference proformas are guidance only: “These forms are only a guide and it is NOT a licence condition to use these specific forms.” Burnley takes the opposite approach inside its licensing area, saying: “This checklist must be completed by all landlords or their agents who rent out properties within the licensing area, and must be produced upon request to any member of the Selective Licensing team.” A usable template should include applicant consent, tenancy dates, rent, arrears, conduct, property condition, complaints, breaches and a yes-or-no question on whether the landlord would let to the tenant again.

What does an employer reference confirm?

An employer reference for a landlord usually confirms the applicant’s employment status, job title, length of employment and, if the employee consents, income. There is no UK-wide rule requiring a private landlord to obtain an employment reference before granting a tenancy, and an employer may give only a neutral reference: the ICO says an employer can provide “minimal information confirming the job title and the dates the person worked for you.” In England, an employer letter can also be one of the documents used in a Right to Rent List 2 identity route, but that is an immigration-status check, not a view on whether the tenant is financially reliable. The Home Office code describes a qualifying employer letter as one confirming the holder’s employee status, employee reference or National Insurance number, and the employer’s name and business address. In practice, HomeLet says larger employers often require signed permission before releasing salary, so a signed applicant declaration should be collected before the employer is contacted.

How do you tell a good tenant from a risky one?

A good tenant is identified by consistent income, honest documents, stable rental conduct and references that match the application; a risky tenant is flagged by unexplained gaps, unaffordable rent, false information, undisclosed adverse credit or a landlord reference that does not match the story. No law defines a good tenant or a risky one, and no statute fixes an income-to-rent pass mark. In England, a landlord must not let to an adult disqualified by immigration status: “A landlord must not authorise an adult to occupy premises under a residential tenancy agreement if the adult is disqualified as a result of their immigration status.” But credit and affordability are different: HomeLet says VISTA compares credit commitments and basic expenditure with monthly income to decide affordability, while another HomeLet/Let Alliance fallback uses at least “2.5 x the annual rent.” In Wales, confirming character references and credit checks is a licensed lettings activity, but the Welsh Government warns that a CCJ alone should not decide suitability.

What happens once referencing comes back?

Once referencing comes back, the usual outcome is pass, conditional pass or fail; the landlord or agent then decides whether to proceed, proceed with conditions, ask for clarification or reject the application. Goodlord says its reports include one of three recommendations: “pass, conditional pass, or fail.” A pass does not itself create the tenancy, and HomeLet warns that the letting agent may still carry out “additional checks” after the reference is returned. In England, a Right to Rent fail is different from a commercial referencing fail: renting to someone without the right to rent can mean “a fine of up to £20,000 for each tenant or” prison. Wales, Scotland and Northern Ireland do not have Right to Rent checks, and GOV.UK says: “You do not need to check a tenant’s right to rent property in Wales, Scotland or Northern Ireland.” If the tenancy proceeds and a tenancy deposit is taken, the deposit must be protected within 30 days.

What fails a reference check?

A reference check can fail because the applicant has no Right to Rent in England, cannot show affordable income under the provider’s criteria, gives false or inconsistent information, has undisclosed adverse credit, or receives a poor landlord or employer reference. There is no legal credit-score or CCJ threshold for a private tenancy: in England the statute only confirms that income may be considered when deciding affordability. A Right to Rent failure is the clearest statutory fail in England, because “A landlord must not authorise an adult to occupy premises under a residential tenancy agreement if the adult is disqualified as a result of their immigration status.” Commercial providers set their own unsatisfactory reference rules. HomeLet’s guidance says, “Any application with undisclosed and unsatisfied CCJs will be returned as not acceptable.” That does not mean every CCJ must be treated as a refusal: Welsh Government guidance says, “You should not rely wholly on this information alone as tenants may be fully able to meet the terms of a tenancy, even if they have a CCJ.”

What can you do if a tenant fails referencing?

Since 1 May 2026 an England landlord cannot ask for, encourage or accept rent before the tenancy is signed, so rent in advance is no longer the fallback for poor credit even though older guidance still suggests it. GOV.UK’s current rent-in-advance guidance says: “Under the Renters’ Rights Act 2025, a landlord cannot ask for, encourage or accept rent before a tenancy agreement has been signed by them or their letting agent and the tenant.” If the tenant failed because of weak affordability rather than dishonesty, the safer options are to decline, ask for a suitable guarantor, correct an error, or make the person a permitted occupier if the remaining tenants can afford the whole rent. Goodlord says a conditional pass is usually resolved by a guarantor or by adding the person as a permitted occupier. In England, an honest failed reference does not justify keeping the holding deposit: government guidance says, “If a tenant provides accurate information but fails a reference check, you must still return their holding deposit.”

What happens if one tenant in a group fails referencing?

If one tenant in a group fails referencing, the landlord can usually reject the group, proceed with a guarantor, make the weak applicant a permitted occupier, or rely on the remaining tenants’ combined affordability, but one England Right to Rent fail can stop the tenancy. The Immigration Act 2014 makes it a contravention where an agreement names “another adult named in the agreement who is disqualified as a result of their immigration status.” For ordinary commercial referencing, no statute across England, Wales, Scotland or Northern Ireland fixes the outcome when one joint applicant fails a credit or affordability check. Goodlord’s conditional-pass model gives the practical choices: require a guarantor, make the person “not liable for rent” as a permitted occupier, or confirm “that the combined affordability of the remaining tenants meets the total rent for the tenancy.” Do not assume the holding deposit can be kept simply because one person failed; in England, retention turns on the Tenant Fees Act rules, and false or misleading information is a separate issue.

What happens if a tenant fails referencing after you have taken a holding deposit?

In England, if a tenant gives honest information but fails referencing after a holding deposit is taken and the landlord decides not to proceed, the holding deposit must usually be returned within 7 days of that decision. The Tenant Fees Act 2019 holding-deposit schedule applies “where a holding deposit is paid to a landlord or letting agent in respect of a proposed tenancy of housing in England,” and GOV.UK says: “For all other circumstances, you must return the deposit within 7 days.” Failed credit is not itself a keep-the-money ground; the exception is false or misleading information, where the Act says the repayment duty does not apply if “the tenant provides false or misleading information to the landlord or letting agent and” the statutory conditions are met. Wales uses a different seven-day trigger if the parties never enter the contract, and Scotland’s premium ban means a non-refundable holding deposit is not a lawful failed-referencing remedy. Northern Ireland has no equivalent statutory holding-deposit timetable; nidirect says, “You should get the deposit back if the landlord pulls out.”

What if the guarantor fails referencing?

If the guarantor fails referencing, the landlord can refuse the tenancy, ask for a different suitable guarantor, correct an error in the guarantor’s reference, or proceed without a guarantor if the risk is acceptable, but England landlords must not use pre-signing rent in advance as the workaround. GOV.UK says a landlord can ask a tenant to provide “a suitable rent guarantor as a condition of granting the tenancy,” and NRLA describes a guarantor as “the most common way to proceed with a tenant if they do not pass the reference checks.” The guarantor must be strong enough to support the liability being guaranteed; Goodlord uses income of 3 times annual rent, while other market guidance often uses 2.5 times. Rent guarantee insurance may be stricter than the landlord’s own appetite: HomeLet’s policy wording says the landlord must not enter a tenancy with a requested guarantor unless that person has been “Satisfactorily Referenced” and has signed a legally enforceable deed of guarantee. If no guarantor passes, the clean answer is usually to decline.

Who is liable if a tenant got through referencing on fake documents?

If a tenant got through referencing on fake documents, liability depends on the fraud, the contract with the referencing provider or agent, and whether the landlord or agent followed a reasonable process rather than on the mere fact that the fraud succeeded. Fake payslips, fake bank statements and fake employer references can amount to fraud by false representation; NRLA reports the police warning that applicants commit fraud when they “present the documents to landlords.” In England, a landlord induced by a knowingly or recklessly false statement may have Ground 17: the Housing Act 1988 applies where the landlord was “induced to grant the tenancy by a false statement made knowingly or recklessly.” Wales has a separate Renting Homes route for occupation contracts where the contract was induced “by means of a relevant false statement.” For England Right to Rent, the Home Office code is process-based: “If a landlord is given a false document, they will only be liable for payment of a civil penalty if it is reasonably apparent that it is false.” Commercial referencing suppliers may also limit liability; HomeLet’s guidance requires a statement that it does “not accept any liability to the prospective landlord.”

How do you reference a company or a commercial tenant?

To reference a company or commercial tenant, verify the legal entity at Companies House, check the company number and registered office, review accounts and filing history, identify directors and beneficial owners, take trade or landlord references, and decide whether a director’s guarantee is needed. There is no prescribed UK company-let or commercial tenant referencing pack, but Companies House says its service makes “all of the public data we hold on companies available free of charge.” A company let is not the same as an ordinary individual tenancy in every nation: in England, an assured tenancy requires that “the tenant or, as the case may be, each of the joint tenants is an individual,” while Wales’s occupation-contract definition also requires that it is made between a landlord and “an individual.” Scotland is different because a home let can still be a private residential tenancy even if it is jointly let to an individual and another person. For high-value agency work, anti-money-laundering customer due diligence can apply at rents of £10,000 or more per month, covering residential and commercial land.

Last reviewed September 2026.

Sources

• Housing Act 2004 Schedule 4 — “A licence under Part 3 must include conditions requiring the licence holder to demand references from persons who wish to occupy the house.” Source
• GOV.UK, Check your tenant’s right to rent — “You must check that a tenant or lodger can legally rent your residential property in England.” Source
• HomeLet, What is tenant referencing and what does it involve — “Tenant referencing is the process through which letting agents or landlords assess and evaluate a tenant's credit history, employment status, and previous rental history to determine their eligibility to rent a property.” Source
• Goodlord, Tenant referencing — “Identity verification, credit, residential, and income checks are the key pillars of our referencing service, with advanced anti-fraud and compliance checks included as standard.” Source
• Experian, Rental credit checks — “The landlord won’t see your current borrowings or payments to lenders.” Source
• Let Alliance, Intelligent referencing — “Combining our 30 years + of expertise with data analytics specialist, Experian, HomeLet has become a member of CAIS – enabling us exclusive and extensive access to source data and full credit files from the Credit Bureau.” Source
• DLUHC, How to Let, March 2023 — “You may want to get references from your tenant’s former landlords or agents to help you decide whether they are reliable.” Source
• GOV.UK, View a tenant’s right to rent — “You do not need to check a tenant’s right to rent property in Wales, Scotland or Northern Ireland.” Source
• Belfast City Council, Northern Ireland HMO standard licence conditions — “The licensee shall demand references for new occupiers before entering into any occupancy agreement with them or allowing them to occupy the premises.” Source
• Letting Agent Code of Practice (Scotland) Regulations 2016 schedule — “You must agree with the landlord what references you will take and checks you will make on their behalf.” Source
• Experian, Rental credit checks — “Landlords can ask for credit information from any (or all) of the UK’s three credit reference agencies— Experian, TransUnion and Equifax.” Source
• GOV.UK, Digital identity certification for right to rent — “Whilst it will not be mandatory for employers and landlords to use a certified IDSP for the purposes of right to work and right to rent checks, the Home Office recommends employers and landlords use a certified IDSP.” Source
• GOV.UK, Fees you can charge as part of a tenancy — “You cannot charge your tenant any payment that is not on this list.” Source
• Renting Homes (Fees etc.) (Wales) Act 2019 s.4 — “Any payment of money is a prohibited payment unless—” Source
• Housing Rights Northern Ireland, Finding tenants — “You can pass the cost on to the applicant, but without any extra charges.” Source
• Renters’ Rights Act 2025 s.41 — “Nothing in this Chapter prohibits taking a person’s income into account when considering whether that person would be able to afford to pay rent under a relevant tenancy.” Source
• Renters’ Rights Act 2025 explanatory notes — “This prohibition of rental discrimination will apply in England, Wales and Scotland.” Source
• GOV.UK, Rental discrimination under the Renters’ Rights Act 2025 — “For example, if you check if a tenant can afford the property, you must include income from benefits in the same way as other income.” Source
• Goodlord, What is Goodlord referencing — “This means that, to meet our affordability criteria, you must demonstrate an annual income of at least 2.5 times the annual rent (or 3 times the annual rent if you are acting as a guarantor).” Source
• HomeLet, What documents do you need to rent — “To pass this part of the application process, your salary will need to be 30 times higher than the monthly rent.” Source
• Equality Act 2010 s.33 — “A person (A) who has the right to dispose of premises must not discriminate against another (B)—” Source
• Burnley Council, Tenant Reference Form — “Are there any outstanding rent arrears at this property?” Source
• Landlord Vision, 17 questions to ask landlords during referencing — “Would you be happy to rent a property to this tenant again?” Source
• ICO, Employment records and references — “You can choose to provide a neutral reference that contains minimal information confirming the job title and the dates the person worked for you.” Source
• Home Office, Right to Rent code of practice — “7. A letter issued by a person who employs the holder no longer than three months before the date on which it is presented, which indicates the holder’s name and confirming their status as an employee and employee reference number or National Insurance number and states the employer’s name and business address.” Source
• HomeLet, Referencing Service Guidelines — “We find that, in over 60% of cases, larger employers will require the applicant’s signed permission before releasing any sensitive personal information, such as their salary – so it’s important to make sure you always have a signed declaration on file.” Source
• Immigration Act 2014 s.22 — “A landlord must not authorise an adult to occupy premises under a residential tenancy agreement if the adult is disqualified as a result of their immigration status.” Source
• HomeLet, Being referenced — “VISTA then assesses your credit commitments and basic expenditures, comparing this to your monthly income to determine whether the rent will be affordable to you.” Source
• HomeLet/Let Alliance VISTA guidelines — “If we are unable to verify their income via the VISTA process, we will need to see evidence that the applicant can cover the income-to-rent ratio which is at least 2.5 x the annual rent.” Source
• Goodlord, Tenant referencing — “Your referencing reports will include one of our referencing recommendations: pass, conditional pass, or fail.” Source
• GOV.UK, Check how to do a right to rent check — “If you rent your property to someone who does not have the right to rent in England, you can get a fine of up to £20,000 for each tenant or be sent to prison.” Source
• HomeLet, Being referenced — “It’s important to remember that your letting agent may carry out some additional checks after we’ve returned your reference, so please wait for them to contact you about your application for the property.” Source
• GOV.UK, Tenancy deposit protection — “Your landlord or letting agent must put your deposit in the scheme within 30 days of getting it.” Source
• HomeLet, Referencing Service Guidelines — “Any application with undisclosed and unsatisfied CCJs will be returned as not acceptable.” Source
• Welsh Government, Letting fees guidance — “You should not rely wholly on this information alone as tenants may be fully able to meet the terms of a tenancy, even if they have a CCJ.” Source
• GOV.UK, Asking for rent in advance guidance — “Under the Renters’ Rights Act 2025, a landlord cannot ask for, encourage or accept rent before a tenancy agreement has been signed by them or their letting agent and the tenant.” Source
• DLUHC, Tenant Fees Act 2019 guidance for landlords and agents — “If a tenant provides accurate information but fails a reference check, you must still return their holding deposit.” Source
• Goodlord, Conditional pass explained — “If a report returns a conditional pass, Goodlord recommends that the tenant either secures a suitable guarantor or is not liable for the rent (i.e. is added as a permitted occupier).” Source
• Immigration Act 2014 s.22 — “(b)another adult named in the agreement who is disqualified as a result of their immigration status, or” Source
• Goodlord, Conditional pass explained — “Conditions applied to the financial section may include requiring a guarantor, making the tenant not liable for rent (adding the tenant as a permitted occupier), or confirming that the combined affordability of the remaining tenants meets the total rent for the tenancy.” Source
• Tenant Fees Act 2019 Schedule 2 — “This Schedule applies where a holding deposit is paid to a landlord or letting agent in respect of a proposed tenancy of housing in England.” Source
• GOV.UK, Fees you can charge as part of a tenancy — “For all other circumstances, you must return the deposit within 7 days.” Source
• Tenant Fees Act 2019 Schedule 2 — “Paragraph 3(b) or (c) does not apply if the tenant provides false or misleading information to the landlord or letting agent and—” Source
• Renting Homes (Fees etc.) (Wales) Act 2019 Schedule 2 — “(b)where paragraph 3(b) applies, the deadline for agreement.” Source
• Private Housing (Tenancies) (Scotland) Act 2016 s.20 — “Sections 82, 83 and 86 to 90 of the Rent (Scotland) Act 1984 apply in relation to a private residential tenancy as they apply in relation to a tenancy of the kind to which those sections refer.” Source
• Rent (Scotland) Act 1984 s.82 — “Any person who, as a condition of the grant, renewal or continuance of a protected tenancy, requires the payment of any premium or the making of any loan (whether secured or unsecured) shall be guilty of an offence under this section.” Source
• nidirect, Tenancy deposit scheme information for tenants — “You should get the deposit back if the landlord pulls out.” Source
• GOV.UK, Fees you can charge as part of a tenancy — “You can ask a tenant to provide a suitable rent guarantor as a condition of granting the tenancy, in these circumstances, a tenant could choose to contract a professional guarantor service.” Source
• NRLA, What happens if a tenant fails reference checks — “Asking the tenant to provide a guarantor is the most common way to proceed with a tenant if they do not pass the reference checks.” Source
• HomeLet, Combined Rent Guarantee Policy Wording — “v not enter into a Tenancy where a person has been requested to act as Guarantor for the Tenant unless that person has been Satisfactorily Referenced and that person has entered into a legally enforceable written Deed of Guarantee in respect of the Tenancy, wherein the Guarantor will guarantee the performance of the Tenant’s obligations within the Tenancy for as long as the tenant remains in occupation” Source
• NRLA, Police warning over fake document scam — “The potential tenants are committing fraud by false representation whenever they present the documents to landlords.” Source
• Housing Act 1988 Schedule 2 — “The tenant is the person, or one of the persons, to whom the tenancy was granted and the landlord was induced to grant the tenancy by a false statement made knowingly or recklessly by—” Source
• Renting Homes (Wales) Act 2016 Part 9 — “If the landlord under an occupation contract is induced to make the contract by means of a relevant false statement—” Source
• Home Office, Right to Rent code of practice, 1 October 2026 — “If a landlord is given a false document, they will only be liable for payment of a civil penalty if it is reasonably apparent that it is false.” Source
• HomeLet, Referencing Service Guidelines — “You must also include a statement that we do not accept any liability to the prospective landlord.” Source
• Companies House, Searching the register — “Our Find and update company information service makes all of the public data we hold on companies available free of charge.” Source
• Housing Act 1988 s.1 — “(a)the tenant or, as the case may be, each of the joint tenants is an individual; and” Source
• Renting Homes (Wales) Act 2016 s.7 — “(a)it is made between a landlord and an individual, and” Source
• Private Housing (Tenancies) (Scotland) Act 2016 s.2 — “A tenancy is to be regarded as one under which a property is let to an individual notwithstanding that it is let jointly to an individual, or individuals, and another person.” Source
• HMRC Anti-money-laundering guidance, letting agency work — “Letting agency work means work consisting of things done in response to instructions received from a person (a “prospective landlord”) seeking to find another person to whom to let land, or a person (a “prospective tenant”) seeking to find land to rent, and to be done in a case where an agreement is concluded for the letting of land for a term of a month or more, and at a rent which during at least part of the term is, or is equivalent to, a monthly rent of £10,000 or more.” Source