Getting tenant referencing right: What landlords need to know

Following the implementation of the Renters’ Rights Act, which includes the abolition of Section 21, tenant referencing will be more important than ever. For landlords a robust process protects your income, reduces risk, and gives you confidence before the tenancy begins.

What good referencing should cover

According to the Property Ombudsman: “All agents should provide their clients with appropriate advice on whether to accept a tenant or not following the results of referencing being obtained”.

At a minimum, you should assess four areas in parallel:

• Identity
• Credit history
• Income and affordability
• Residential history

It’s not enough for a tenant to “pass” on income alone. A strong salary won’t offset undisclosed credit issues or unverifiable address history. The safest approach is to apply the most cautious outcome across all areas — if one element raises concerns, the overall result should reflect that.

Red flags to watch for

Some risks are clear-cut. Others are more subtle. For example:

• An undeclared CCJ over £1,000, recent bankruptcy, or IVA.
• Mismatched names across application and ID documents without supporting evidence.
• Applicants who cannot be traced at declared addresses.
• Income that can’t be verified at source.
• Self-employed applicants with very limited trading history.
• Employment starts well after the tenancy begins.

These don’t always mean decline, but they do warrant further safeguards, such as a guarantor.

Managing multiple applicants

With joint tenancies, both the combined and individual positions matter. Each tenant must meet affordability on their share of the rent.

Guarantors should meet a higher threshold, typically at least three times the annual rent share, as they are underwriting someone else’s commitment.

Speed also matters. When several applicants are involved, delays from one person can stall the entire tenancy. Clear deadlines and structured follow-ups keep the process moving.

DIY vs professional referencing

Referencing yourself can seem cost-effective, but it’s time-intensive and easy to get wrong. Chasing employers and previous landlords, verifying documents, interpreting credit data, and keeping records compliant all take time.

Using a professional provider like NRLA Tenant Referencing powered by Goodlord saves huge amounts of time and also means:

• Automated prompts and structured follow-ups within a defined processing window.
• Income verification through Open Banking and payroll integrations.
• Checks against fraud databases, PEPs and sanctions lists.
• Facial verification and liveness detection (where applicable).
• Specialist review where fraud indicators are identified.
• Reports delivered securely and in a GDPR-compliant format.

For landlords, this removes much of the administrative burden while applying consistent, risk-aware decision-making. Premium tiers can also support eligibility for Rent Protection Insurance (RPI), adding another layer of security.

Record keeping: Don't cut corners

Professional referencing doesn’t remove your legal obligations. In England, landlords must conduct Right to Rent checks correctly, retain copies of documents, and keep records for the duration of the tenancy and beyond.

Maintain a clear audit trail of what you checked, when you checked it, and the outcome. If a dispute arises, thorough records are your best protection.