Tenant Due Diligence: A Referencing Guide for Landlords

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Tenant reviewing documents and completing checks on a laptop during the rental referencing process.

Finding the right tenant is one of the most important decisions a landlord can make. While marketing, viewings and interviews all play a role, tenant reference checks are the most reliable way to assess whether a prospective tenant is suitable for your property.

For landlords, especially those managing student lets, HMOs or buy-to-let investments, robust referencing can significantly reduce the risk of rent arrears, property damage and tenancy disputes. This guide explains what tenant reference checks involve, why they matter, and how landlords can carry them out correctly and legally.

Related: Property Management Services

What Are Tenant Reference Checks?

Tenant reference checks are background checks carried out before a tenancy agreement is signed. Their purpose is to verify whether a prospective tenant can:

  • Afford the rent
  • Pay rent reliably
  • Look after the property
  • Comply with the terms of the tenancy

Referencing provides landlords with objective evidence, rather than relying solely on first impressions or verbal assurances.

Why Tenant Referencing Is Essential for Landlords

Skipping reference checks can be costly, as even one problematic tenancy can lead to lost rental income, legal fees and prolonged void periods. Proper tenant referencing helps landlords reduce the risk of rent arrears, identify potential issues early, protect their property investment, maintain consistent cash flow and meet best-practice letting standards.

For student landlords and HMO operators, referencing is particularly important where multiple occupants share responsibility for rent and behaviour.

Related: Renters’ Rights Act possession grounds from May 2026

What Does a Tenant Reference Check Include?

A comprehensive tenant reference check usually includes several key elements.

  1. Identity verification – photo ID, proof of address and date of birth
  2. Right to Rent (England) – confirms legal eligibility to rent before move-in
  3. Credit checks – flags CCJs, insolvencies and payment history
  4. Income and employment checks – verifies earnings via payslips, contracts or employer references
  5. Previous landlord references – review rent payment history, property care and any disputes
  6. Guarantor checks (if needed) – confirms the guarantor’s identity, income and ability to cover rent/damages

Tenant Referencing for Student Lets

Student tenancies can be more complex, as many students have limited credit history and irregular income, so guarantors are often essential. Best practice includes UK guarantors, full referencing for all occupiers, joint and several liability, and clear rent payment schedules.

Related: Should You Ask for a Guarantor for Student Lets?

Can Landlords Carry Out Referencing Themselves?

While landlords can carry out basic checks themselves, many prefer to use professional referencing services or letting agents. DIY referencing can lead to incomplete checks, data protection issues, difficulty verifying documents and limited access to credit data, whereas professional services ensure referencing is thorough, compliant and unbiased.

Compliance, Red Flags and Next Steps

Tenant referencing involves sensitive personal data, so landlords must follow UK GDPR by gaining consent, storing information securely and using it appropriately. Watch for red flags such as inconsistent details, missing or altered documents, reluctance to provide references or pressure to move in quickly, and investigate further where needed. 

If an applicant fails checks, you may request a guarantor, ask for rent in advance, offer a shorter fixed term or decline the application, as long as decisions are fair and consistent. Nicholas Humphreys can manage the full process, including affordability and credit checks, student guarantors and Right to Rent compliance.

Related: How to Become a HMO Landlord

Making the Right Letting Decision

Tenant reference checks are not an optional extra, they are a critical step in protecting your rental investment. By carrying out comprehensive, compliant checks, landlords can significantly reduce risk and enjoy smoother, more profitable tenancies.

If you’re unsure about referencing or want expert support, working with a specialist letting agent can make all the difference.

Speak to your local Nicholas Humphreys branch to ensure your next tenancy starts on the strongest possible footing.

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