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

What You Need to Know

Self-managing landlords can conduct professional tenant reference checks without hiring a letting agent. The core process involves five steps: running a credit and background check, verifying employment and income, contacting the previous landlord, assessing affordability against the rent, and conducting a right-to-rent check. Most automated tenant reference checks return results within 2-5 working days, allowing landlords to make a letting decision within one week of the viewing. Standalone tenant referencing services cost £15-30 per applicant — significantly less than the £200-400 agent referencing fees built into traditional letting agent packages. The National Residential Landlords Association recommends that a tenant's gross annual income should be at least 2.5 to 3 times the annual rent to ensure affordability.

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 — most automated checks return results within 2-5 working days, though manual employer verification can extend this to 7-10 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. According to current provider pricing pages, costs typically range from £15 to £30 per applicant, with OpenRent charging £20 for a comprehensive reference including credit checks, employer verification, and right-to-rent confirmation. 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 National Residential Landlords Association recommends that a tenant's gross annual income should be at least 2.5 to 3 times the annual rent to ensure they can afford the tenancy alongside their other living expenses. 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.
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