Finding the right tenant is one of the biggest factors in a smooth, profitable tenancy. A proper tenant reference check helps you confirm who your applicant is, whether they can afford the rent, and how they’ve behaved in previous rentals. Done well, referencing reduces the risk of arrears, property damage, and hard-to-resolve disputes later on.
With rental reform now underway in England (including the Renters’ Rights Act changes due from 1 May 2026), choosing reliable tenants from the start matters more than ever. This guide explains what reference checks are, why they’re needed, how long they take, what they cost, and what they include.
Related: What the 2025 budget really means for homes, landlords and local property markets
What are reference checks?
Tenant reference checks (sometimes called tenancy references or rental references) are pre-tenancy background checks carried out by landlords or letting agents. They’re designed to verify:
- Identity – confirming the applicant is who they say they are.
- Affordability – whether their income and finances support the rent.
- Rental history – how they’ve handled previous tenancies.
- Legal eligibility – for example, Right to Rent checks in England.
Many landlords use a professional referencing provider or their letting agent to manage the process. This keeps checks consistent, compliant, and properly recorded.
Why are reference checks needed?
Referencing is basically your safety net. Even in busy rental markets, taking a tenant without checks can lead to high costs. Reference checks help you:
- Confirm the tenant can truly afford the rent
A tenant may look fine at viewing, but affordability checks show whether rent is realistic once bills and existing commitments are factored in. - Reduce arrears risk
Credit checks highlight patterns of missed payments, existing debt pressure, or court judgments that could affect rent reliability. - Understand past tenancy behaviour
Previous landlord references can reveal whether rent was paid on time, the property was respected, and whether there were disputes. - Stay legally compliant
In England, Right to Rent checks are mandatory before a tenancy begins. Failing to complete them correctly can lead to serious penalties. - Prepare for tighter regulation
From May 2026, most new and existing tenancies in England will shift to periodic agreements, “no-fault” eviction will end, and advance rent for new lets will be capped at one month. This means removing tenants will take longer, so preventing the wrong let in the first place is key.
Related: Renters’ Rights Act: Key changes for self-managing landlords from 27 December 2025
How long does tenant referencing take?
Most UK tenant reference checks take around 2 to 5 working days once the tenant has supplied all required documents. Straightforward applications can be completed faster, while detailed checks may take closer to a week.
Common causes of delay include:
- Missing or unclear paperwork (ID, payslips, proof of address).
- Self-employed applicants need an accountant’s confirmation or extra evidence.
- Slow responses from employers or previous landlords.
- Applicants with overseas income or complex immigration status.
Landlord tip: You can speed things up by giving applicants a clear document list upfront and reminding them to tell referees (employers/landlords) to expect a request.
What costs come with tenant referencing?
In England, tenants cannot be charged for referencing. Typical current cost ranges:
- Basic referencing: usually £15–£25 per applicant
(credit/identity checks and core affordability). - Comprehensive referencing: commonly £30–£50 per applicant
(adds deeper affordability assessment plus employer and landlord references). - Premium packages: can be higher where extra verification is needed
(for example, complex self-employment, overseas checks, or enhanced fraud screening).
Costs vary by provider and location, but the key point is that referencing is a relatively small upfront investment compared to the potential cost of a failed tenancy.
Related: The Renters’ Rights Act: What It Means for Landlords and Tenants
What is included in reference checks?
A good reference check looks at both finances and behaviour. Here’s what’s usually covered.
Credit check
Checks the tenant’s credit history for late payments, defaults, CCJs, insolvency, and high debt. A poor score isn’t always a deal-breaker, but it may mean asking for a guarantor or more proof.
Employer reference
Confirms employment details like role, salary, start date, contract type, and stability, helping verify the income is genuine and ongoing.
Bank statements
Show real affordability by confirming salary deposits, spending habits, existing commitments, and reliance on savings, useful for variable or self-employed incomes.
Proof of address
Documents like utility bills, council tax, or bank letters confirm where the tenant currently lives and support ID checks.
ID checks
Verifies identity using items such as a passport, driving licence, or residence permit. Digital checks are common, but documents must be valid and match the applicant.
Previous landlord references
Reveals past tenancy behaviour, rent reliability, property care, disputes, and whether they’d be rented to again. Focus on patterns, not one-offs.
Right to Rent checks (England)
Right to Rent checks are mandatory in England for all adult tenants. Before the tenancy starts, you must verify approved documents or digital status in the tenant’s presence, keep dated copies, and record the check. If a tenant doesn’t have the Right to Rent, you can’t legally let to them.
Let with peace of mind
Tenant referencing helps protect your investment by confirming affordability, identity, and rental history. Parkers can manage the entire process for you, including credit, employer, landlord and Right to Rent checks, to secure reliable tenants from the outset. Contact your local Parkers team to get started.
