In the Private Rented Sector, quickly getting the right tenants settled into the right rental property as swiftly as possible has always been the goal of every letting agent and landlord. But in today's market, balancing speed, quality, and the proper due diligence is more important than ever.
Since the Renters' Rights Act (RRA) came into force in May 2026, the financial risks and reputational damage that come with leaky compliance workflows can no longer be ignored. Repossession times are growing, rental fraud is becoming increasingly sophisticated due largely to advances in AI, and the weight of day-to-day admin is only getting heavier.
In this landscape, robust referencing is a time-consuming and complicated process. It can also be prone to error. Even one missed red flag, be it an undisclosed debt, a falsified credit history, or an incomplete Right to Rent check, can lead to rent arrears, lengthy possession proceedings, and costly void periods.
As a result, agents and landlords need the right tools and support in place to protect themselves and their portfolios.
While some agencies still rely on slow, manual checks, a properly integrated, human-led tenant referencing service can save agencies days (or even weeks) of time without sacrificing quality vetting. Platforms like Goodlord Tenant Referencing combine credit checks, affordability assessments, identity verification, automated compliance workflows, and fraud prevention tools into a simple process designed to reduce human error and process referencing quickly and efficiently.
Even with best-in-class solutions like Goodlord’s tenant referencing checks, it's still important to understand what to look for in tenant referencing. In this guide, we'll break down what a thorough check looks like and issues you should be on the lookout for.
Tenant referencing is the process of verifying whether a prospective tenant is financially reliable, legally eligible to rent, and likely to successfully maintain a tenancy.
For letting agents, it acts as a risk assessment process designed to identify potential red flags before a tenancy agreement is signed. When carried out correctly, these background checks help protect landlords from all sorts of issues, such as rent arrears, fraud, compliance breaches, and otherwise avoidable disputes. It also helps good tenants get into their new homes without fuss or long waiting times.
Tenant vetting allows agents and landlords to build a complete picture of their applicants, rather than relying on a single check or document in isolation.
A full tenant screening process will typically assess:
Tenant referencing has become far more important in today’s post-Renters’ Rights Act Private Rented Sector. The abolition of “No-fault” Section 21 notices means that with rising fraud risks, increasing compliance obligations, and longer possession timelines, letting agents face greater consequences when unsuitable tenants are approved.
A weak referencing process can lead to rent arrears, tenancy disputes, costly void periods, and reputational damage. And because removing problematic tenants can now be time-consuming and expensive, prevention is more valuable than ever.
At the same time, rental fraud is becoming increasingly sophisticated. Forged payslips, edited bank statements, fake employer details, and fake identities can sometimes pass basic manual checks, particularly when teams are under pressure to move quickly.
That’s why many agents are moving towards automated referencing systems, such as Goodlord, that combine identity verification, affordability checks, credit checks, and fraud-prevention tools into a single workflow.
Strong tenant referencing protects everyone involved in the moving-in process. It helps landlords reduce financial risk, supports agents with compliance and operational efficiency, and creates a more secure and transparent experience for tenants applying for property.
Tenant referencing is more than a simple administrative task. Services like those offered by Goodlord use a rigorous process that examines many aspects of the prospective tenant's background, creating a clear audit trail that stands up to scrutiny.
To help you, agents, and landlords better understand the process, we've prepared a checklist outlining the key checks to carry out before any tenancy agreements are signed.
The first step in any referencing process is to verify that the tenant is who they say they are with proof of identity. This is typically done by checking:
Doing this manually can increase the risk of human error. Services like Goodlord use automated systems overseen by a human expert to ensure that these documents are fully in order.
Why it matters
Weak identity checks risk agents allowing fraudulent applicants to enter into properties they would normally have no right to. Under the Renters' Rights Act, this creates potentially significant legal and financial complications.
In England, letting agents and self-managing landlords are legally required to confirm that their tenants have a right to rent property in the UK. A standard Right to Rent check includes:
Failure to conduct these checks in a compliant manner can lead to substantial penalties. You can find out more about Right to Rent checks on the government's website.
Why it matters
Right to Rent checks are legally required. This takes it beyond a mere administrative task and demands the attention of letting agents and landlords.
Before a tenant rents your property, you need to ensure that they can actually afford to live there. Credit checks allow letting agents to get an understanding of the prospective tenants' financial reliability before they hand over the keys. Credit checks might reveal:
While important, credit checks shouldn't be used as the be-all and end-all when choosing a tenant. Some applicants with lower credit scores may still be able to afford to live in the property if they have strong guarantor support or a good income.
Why it matters
Rent arrears are a constant worry for landlords. This is especially true now that the RRA has increased the time a tenant can be in arrears before the landlord can issue a Section 8 notice. Conducting a credit check reduces the risk of a tenant falling into arrears.
Like a credit check, affordability assessments allow letting agents to check whether their potential tenants can afford the property they're applying for. This part of the process includes reviewing:
This can be a particularly time-consuming part of the reference check process because of the many documents involved. Some platforms, such as Goodlord, use services like Open Banking and payroll integration to verify income quickly and accurately.
Why it matters
A good credit check might indicate that a tenant stays on top of their finances, but they might still not be able to afford the property they're applying for. Income and affordability checks, used in tandem with credit checks, give a full picture of a tenant's finances.
Verifying the tenant's employment helps confirm that the applicant's income is legitimate, stable, and ongoing. Agents should check:
Traditional manual employer referencing can be slow, especially if the employer is difficult to contact.
Why it matters
Tenants without stable employment could be riskier to rent to, as it could indicate a future affordability issue. It is important to note here that under the RRA, agents and landlords are not permitted to discriminate against tenants who rely on benefits.
Reviewing references from previous landlords can be useful in assessing how an applicant has behaved during past tenancies. In this context, agents should be looking at:
Agents carrying out these checks should look toward the tenant's general pattern of behaviour rather than focus on individual incidents. One bad experience with a previous landlord shouldn't negatively impact the entire application.
Why it matters
Past patterns are strong indications of future behaviour. As we mentioned above, it should be taken with a grain of salt, but it is still an important metric to consider.
For many tenants, using a guarantor is the only way they can secure a property. This could be due to many factors, including affordability issues, limited or weak credit histories, immigration status, or non-conventional employment circumstances. Guarantors should be assessed with a similar renter checklist to tenants, including:
Students, international tenants, and tenants in receipt of benefits are the most likely applicants to use guarantors.
Why it matters
A risky guarantor can lead to affordability issues down the line if the tenant falls into financial difficulty. This could leave your landlord in a lurch with avoidable arrears and void periods.
Every stage of the referencing process should be properly documented and securely stored. This includes:
Clear audit trails help protect agents in the event of disputes, compliance reviews, or landlord queries.
Platforms like Goodlord centralise these records within a single workflow dashboard, improving visibility and accountability across the tenancy process.
Why it matters
If a tenancy issue later escalates, documented evidence of the referencing process can become critically important from both a legal and compliance perspective.
A strong referencing provider should offer more than just basic credit checks. Letting agents should look for solutions that combine:
The goal isn’t to just process applications faster. Letting agents should instead look to reduce risk while creating a more reliable and transparent experience for landlords and tenants.
Platforms like Goodlord Tenant Referencing bring these processes together within a single workflow, helping agents standardise checks, reduce administrative pressure, and maintain better visibility throughout the referencing process.
If you'd like to know more about how Goodlord can help streamline your referencing process without sacrificing precision, get in touch with our expert team today.