Tenant Referencing Without a Letting Agent: A Step-by-Step Guide

Why Referencing Matters More Than You Think

Finding a good tenant is the single most important thing you can do as a self-managing landlord. A thorough referencing process does not guarantee a trouble-free tenancy, but it dramatically reduces the risk of rent arrears, property damage, and disputes.

Many landlords who manage without a letting agent assume that referencing is complicated or requires specialist expertise. It is not. The process is methodical and entirely manageable, provided you follow a structured approach and use the right tools.

Tenant referencing is not about finding the perfect tenant. It is about identifying genuine red flags before you hand over the keys to your property.

When to Reference

Timing matters. You should begin the referencing process after a prospective tenant has viewed the property and you have provisionally accepted their application, but before you sign the tenancy agreement or take any payment.

There is no point referencing someone who has not seen the property — they may not want it. Equally, you should never allow a tenant to move in while references are still pending. If a reference comes back unsatisfactory after the tenancy has started, you have very limited options.

The typical timeline looks like this:

1. Tenant views the property and expresses interest
2. You collect their referencing information (usually via an online form)
3. References are processed — typically 2 to 5 working days
4. You review the results and make your decision
5. If satisfactory, you proceed to sign the tenancy agreement

What You Can and Cannot Ask

Before diving into the referencing steps, it is worth understanding the legal boundaries around the information you are entitled to request.

You can ask for:

• Full name, date of birth, and current address
• Employment details and income
• Previous landlord contact information
• Permission to run a credit check
• Proof of identity and right to rent documents
• Details of anyone who will be living at the property

You cannot ask about or use as grounds for refusal:

• Whether the applicant receives housing benefit or Universal Credit
• Whether they have children
• Their marital status, sexual orientation, religion, or ethnicity
• Medical conditions or disabilities (unless directly relevant to the property's suitability)

Step-by-Step Referencing Process

1. Run a credit and background check. Use a reputable referencing service to check the applicant's credit history, any County Court Judgments (CCJs), insolvency records, and electoral roll registration. Services such as OpenRent, Goodlord, and Canopy offer standalone tenant referencing packages that do not require you to use their full lettings platform. Costs typically range from £15 to £30 per applicant. The tenant may agree to cover this cost — but you cannot require them to pay under the Tenant Fees Act 2019.
2. Verify employment and income. Contact the applicant's employer directly to confirm their job title, employment start date, salary, and whether the role is permanent or fixed-term. Ask the employer to respond on company-headed paper or from an official company email address. For self-employed applicants, request the last two years of tax returns (SA302 forms) or a reference from their accountant.
3. Contact their previous landlord. Speak to the applicant's current or most recent landlord to verify the tenancy dates, whether rent was paid on time, the condition the property was left in, and whether there were any issues or complaints. Ask whether they would rent to this person again — it is a simple question that often reveals a great deal.
4. Assess affordability. The standard industry benchmark is that a tenant's gross annual income should be at least 2.5 to 3 times the annual rent. For a property at £1,000 per month (£12,000 per year), you would expect a gross income of at least £30,000 to £36,000. If the tenant falls slightly below this threshold but has strong references and a solid credit history, you might consider accepting a guarantor.
5. Carry out a right to rent check. You are legally required to verify that every adult occupier has the right to rent in England. This must be done within 28 days before the tenancy start date. Use the Home Office Online Right to Rent Checking Service where possible, or conduct a manual document check. For a detailed walkthrough of the process, see our right to rent checks guide.
6. Check the applicant's identity. Verify that the person who attended the viewing is the same person whose documents you are checking. Compare their photo ID with the person in front of you and ensure that the name, date of birth, and address details are consistent across all documents provided.

Choosing a Referencing Service

You do not need to piece together each check individually. Several online platforms bundle everything into a single referencing package.

OpenRent Referencing is popular with self-managing landlords. It includes credit checks, employer verification, previous landlord references, and right to rent confirmation. It costs around £20 per applicant and results typically come back within 48 hours.

Goodlord offers a similar comprehensive package and is widely used by agents and landlords alike. Their referencing includes credit checks, fraud detection, and affordability analysis.

Standalone credit check services such as Experian or Equifax let you run individual credit reports, but these do not include landlord or employer references. They are useful as an additional layer of due diligence, but they should not replace a full referencing process.

Red Flags to Watch For

Even with professional referencing, you need to apply your own judgement. Look out for:

• Gaps in rental history. If the applicant cannot account for where they lived during a particular period, ask why. There may be a perfectly reasonable explanation, but it is worth exploring.
• Reluctance to provide a previous landlord reference. Some tenants have genuinely never rented before (for example, they have been living with family). But if someone has a rental history and is evasive about landlord contact details, that is a concern.
• Income that does not add up. If the stated salary seems inconsistent with the applicant's job title or sector, dig deeper. Ask for payslips as supporting evidence.
• Multiple CCJs or a recent default. A single CCJ from several years ago may not be a dealbreaker, depending on the circumstances. A pattern of financial difficulty is a different matter.
• The "friend" acting as a previous landlord. When contacting a previous landlord, call the number you find independently (for example, through a property listing or land registry) rather than relying solely on the number provided by the applicant.

Employer References — What to Ask

When you contact the applicant's employer, keep your questions focused and factual:

• Can you confirm that [name] is currently employed by your organisation?
• What is their job title and employment start date?
• Is the role permanent, fixed-term, or on a zero-hours contract?
• Can you confirm their annual gross salary?
• Is there any reason to believe their employment may end in the foreseeable future?

You do not need to ask about the person's character or personal life. The purpose is to verify income and employment stability — nothing more.

For self-employed applicants, an accountant's reference serves the same purpose. Ask for confirmation of average annual earnings over the last two tax years and whether the business appears financially stable.

Previous Landlord References — What to Verify

The previous landlord reference is arguably the most valuable part of the entire process. A credit check tells you about financial history; a landlord reference tells you what it was actually like to have this person as a tenant.

Ask the previous landlord:

• How long did the tenant live at the property?
• Was rent always paid on time and in full?
• Was the property kept in reasonable condition?
• Were there any complaints from neighbours?
• Was proper notice given when they left?
• Would you rent to this person again?

Affordability and Guarantors

The affordability check is straightforward arithmetic, but it serves as a crucial safety net. The standard threshold of 2.5 to 3 times the annual rent exists because tenants need enough income to cover their rent and their other living expenses.

If an applicant's income falls below the threshold, you have several options:

• Request a guarantor. A guarantor agrees to cover the rent if the tenant cannot. The guarantor should also be referenced and must meet the same affordability criteria — typically, their income should be at least 3 times the annual rent.
• Request rent in advance. You can ask for up to six months' rent in advance, though this may reduce your pool of applicants.
• Decline the application. If the numbers do not work and there is no guarantor available, it is better to decline than to take a risk you are uncomfortable with.

Remember that benefits income counts towards affordability. Universal Credit housing costs, housing benefit, and other benefits are legitimate income sources, and you cannot refuse to consider them.

GDPR and Data Handling

Tenant referencing involves collecting sensitive personal data — financial records, employment details, identity documents. Under UK GDPR, you have legal obligations around how you handle this information.

• Collect only what you need. Do not ask for information that is not relevant to the referencing decision.
• Store data securely. Keep physical documents in a locked location and digital files behind a password. Do not leave referencing documents in shared folders or unsecured email accounts.
• Tell applicants what you are doing. Let prospective tenants know that you will be running credit checks, contacting their employer, and reaching out to previous landlords. Their consent is required before you run a credit check.
• Delete data when it is no longer needed. If an applicant is unsuccessful, delete their referencing data promptly — there is no reason to keep it. For successful applicants, retain referencing records for the duration of the tenancy and a reasonable period afterwards (typically 12 months).

If you use a third-party referencing service, they will handle much of this for you. But you are still responsible as the data controller for ensuring that the applicant's information is processed lawfully.

Costs and Practical Considerations

A full referencing package from an online service costs between £15 and £30 per applicant. If you are referencing two applicants for a joint tenancy, budget for around £40 to £60.

Under the Tenant Fees Act 2019, you cannot charge the tenant for referencing. It is a cost you bear as the landlord. However, some platforms (such as OpenRent) allow the tenant to pay for their own referencing voluntarily — the key distinction is that you cannot make it a condition of their application.

The process typically takes 2 to 5 working days, depending on how quickly the employer and previous landlord respond. You can speed things up by asking the applicant to give their employer and landlord advance notice that a reference request is coming.

Professional referencing typically costs less than £30 per applicant. Compared to the cost of a bad tenancy — months of arrears, property damage, legal fees — it is the best investment you will make.

Putting It All Together

Tenant referencing is not difficult, but it does require discipline. The landlords who run into trouble are usually the ones who skip steps because they are in a hurry to fill a vacancy, or who rely on gut feeling rather than evidence.

Follow the process every time, for every applicant, without exception. Apply the same criteria to everyone. Document your decisions and the reasons behind them. And if a reference comes back with concerns, do not ignore them because the applicant seemed pleasant at the viewing.

If you are managing your rental property without a letting agent, referencing is one of the core skills you need to master. Alongside right to rent checks and deposit protection, it forms the foundation of a legally compliant and well-managed tenancy.

Take the time to get it right. Your future self will thank you.