Selecting a reliable tenant is the most important single step in a successful tenancy. Poor referencing is the most common root cause of rent arrears, property damage disputes, and protracted Section 8 possession proceedings. With the Renters' Rights Act 2025 abolishing Section 21 from 1 May 2026, thorough referencing is more important than ever — once a tenancy starts on a Periodic Assured Tenancy, the landlord's ability to recover possession without fault is limited to the statutory Section 8 grounds.
What tenant referencing checks should landlords run in 2026?
- Identity verification: Confirm the applicant's identity using a passport, driving licence, or other government-issued photo ID. This is also a legal requirement for Right to Rent checks
- Right to Rent check: A legal requirement under the Immigration Act 2014. Check the applicant's right to rent in England before granting the tenancy. For British and Irish citizens, a passport or birth certificate plus NI number suffices. For other nationals, check the applicant's Biometric Residence Permit or online UKVI share code
- Credit check: Run a credit reference bureau check through a referencing agency. Look for County Court Judgments (CCJs), Individual Voluntary Arrangements (IVAs), bankruptcies, and payment defaults. A single satisfied CCJ more than 3 years old may be acceptable; undischarged debts or recent defaults are a red flag
- Income and affordability verification: Request the last 3 months' payslips plus a recent bank statement showing salary credits. Self-employed applicants should provide the last 2 years' tax returns (SA302) or accountant's letter. Benefits income can be verified by a Universal Credit award letter or LHA rate letter
- Employment reference: Contact the applicant's employer directly to verify current employment, salary, and length of service. Be alert to references provided by personal connections rather than HR departments
- Previous landlord reference: Contact the outgoing landlord directly — not via the applicant. Ask specifically: Was rent paid on time? Was any legal action required? Was the property returned in good condition? Would you re-let to this tenant?
- Rental history check: Many referencing agencies now access shared databases of adverse tenancy conduct. Check whether the applicant appears on any tenancy fraud or adverse rental history register
Professional referencing agencies vs DIY checks
Landlords can choose to carry out referencing themselves or to instruct a professional referencing agency. Each approach has advantages:
| Approach | Advantages | Considerations |
|---|---|---|
| Professional agency | Access to credit bureau data, adverse tenancy databases, employment verification services; fully GDPR-compliant process; produces a formal reference report | Costs typically £15–£40 per applicant; some services slower than others; quality varies between providers |
| DIY referencing | Free (aside from time); gives landlord direct contact with previous landlord and employer; may reveal nuances that a form-based check misses | No access to credit bureau or adverse tenancy register without a commercial subscription; higher risk of applicants providing misleading references |
Guarantors — when to require one and how to reference them
- Require a guarantor where the tenant's income falls below the standard affordability threshold, or where the applicant has a thin credit history (e.g. first-time renters, students, recently arrived internationally)
- The guarantor should be UK-resident (for practical enforcement) and should be referenced to a higher income threshold than the tenant — typically 35–40x monthly rent
- A guarantor agreement must be in writing, signed by the guarantor, and should cover the full rent, any permitted charges, and any damage beyond fair wear and tear
- Guarantee obligations are not automatic — the agreement must clearly specify the scope of the guarantee, the maximum sum guaranteed, and whether the guarantee is time-limited or continues throughout the tenancy
- LetSafe UK's guarantor agreement template (LS-E-012) is drafted for use with Periodic Assured Tenancies from May 2026
GDPR and data protection in tenant referencing
- Landlords who process applicant personal data (identity, income, credit, rental history) are data controllers under UK GDPR. Inform applicants of what data you collect, how you use it, and how long you retain it
- Do not retain referencing data for longer than necessary — once an applicant is accepted or rejected, data should be deleted or anonymised within a reasonable period (typically 6–12 months)
- If you use a professional referencing agency, ensure a Data Processing Agreement (DPA) is in place and that the agency is registered with the ICO
- Applicants have the right to access personal data you hold about them and to have inaccurate data corrected. Respond to Subject Access Requests within 30 days
Best practice in 2026
With Section 21 abolished, thorough referencing before granting a tenancy is now more critical than ever. If a problem tenant is in occupation on a Periodic Assured Tenancy, you can only recover possession via Section 8 grounds — which requires court proceedings. Rigorous pre-tenancy referencing is the most cost-effective way to avoid this situation.