Reference checks
Reference checks are the enquiries a landlord or letting agent makes about a prospective tenant before granting a tenancy, to help assess risk and comply with legal duties. They sit within the broader process of tenant vetting and typically cover identity, credit history, income and employment, previous landlord or agent references, and the tenant's right to rent in the UK under immigration rules.
What does a tenant reference check include?
A full reference check for a renter in the UK typically involves some or all of the following:
A credit check searches public records for county court judgements (CCJs), individual voluntary arrangements (IVAs), bankruptcy orders, and payment defaults. Most referencing services use one of the major credit reference agencies, Experian, Equifax, or TransUnion. A clean credit record is a positive indicator, though a thin credit file (common for young renters or those new to the UK) is different from a poor one and should be interpreted accordingly.
An employment and income check verifies that the applicant is employed or self-employed as stated, and that their income is sufficient relative to the rent. The standard benchmark is gross annual income of at least 30 times the monthly rent, though this varies. For self-employed applicants, referencing services typically ask for two years of tax returns or accounts.
A previous landlord reference asks the most recent landlord or managing agent to confirm the tenancy dates, whether rent was paid on time, whether the property was returned in good condition, and whether they would rent to the applicant again. This is one of the most useful checks available and is worth pursuing even when using a referencing service that does not include it automatically.
A right to rent check is a legal requirement for landlords in England. It verifies that the prospective tenant has the right to rent in the UK by checking their documents in person or via the government's online share code service. Failing to carry this out correctly can result in a civil penalty of up to £20,000 per tenant. See our blog article on what is the Right to Rent and the share code for the full process.
Identity verification confirms the applicant is who they claim to be, usually via passport or driving licence alongside proof of address.
Using a referencing service versus doing it yourself
Most landlords use a specialist referencing company, such as Homelet, Vouch, Canopy, or OpenRent Referencing, to run checks on their behalf. These services typically charge £15–£30 per applicant and return a summary report within 24–48 hours. They handle the data collection, agency checks, and report formatting, and some offer a guarantee product that pays out if the tenant defaults.
Landlords who prefer to run checks directly can request payslips, bank statements, a P60, and the contact details of the employer and previous landlord, then approach each reference holder directly. This takes more time but gives greater control over the questions asked, particularly useful for previous landlord references, where a referencing service may only ask a standard set of questions. Our blog article on 15 questions to ask former landlords during tenant vetting covers exactly what to ask.
Background checks for landlords: staying compliant
Under the Tenant Fees Act and the wider Renters' Rights Act framework, landlords cannot charge tenants separately for reference checks, these are a business cost to be priced into the rent. Any standalone admin or referencing fee charged to the tenant is likely to be a prohibited payment, which can create enforcement risk and jeopardise future possession proceedings.
All checks must be fair, transparent, and non-discriminatory. Decisions should be based on consistent criteria rather than assumptions about groups of people. Personal data collected during the referencing process must be handled lawfully under UK GDPR, you should only collect what is necessary, keep it securely, and delete it once it is no longer needed.
Thorough reference checks are not a guarantee against future problems, but they are an important part of demonstrating that a landlord has acted responsibly and proportionately when choosing a tenant. See our free landlord resources for support with the wider tenancy set-up process.
Also read our landlord blog articles including:
Also see: Tenant vetting · Right to Rent · Right to rent check · Guarantor · Tenant Fees Act · Prohibited payments · Permitted payments · Renters' Rights Act · Landlord · Tenant · Letting agent
