Why referencing in lettings is so important:

For many tenants, a screening process may just seem like a way to prolong the rental process, asking for various personal details such as ID, employment proof and proof of income. However, it is so much more than that, its a safety net for all landlords and property managements, helping them detect any deceptive applicants. In 2023 alone, every 2.9 in 1,000 tenancies were fraudulent, with fake payslips and forged documents. This increase surged due to lack of properties available and competition.

Tenancy referencing therefore checks a range of tenants documents from their employment status to their financial background, all in which help the landlord or letting agent prove that the prospective tenant is who they say they are and that they are truly able to afford a specific property. Landlords and letting agents like ourselves tend to use a third party referencing company to help them assess their applicants as they have an extensive database and high level technology to help identify who is fraudulent.  

Information that will typically need to be shared:

There is many pieces of information a referencing company may ask a tenant to provide. Such as their right-to-rent status, affordability, income verification, credit checks (with tenant permission). Referencing companies may also ask for a reference from a previous landlord or agent if the tenant has rented previously.

Documents:

• UK passport/driver’s licence

• Contact details

• Details of employers

• Details of previous landlords

If these checks identify some issues, it does not always mean that the tenant will not secure the property, conversations with a landlord or agent can sometimes help the situation and move them forward in the rental process.

Additional reads:

Landlords: why it’s crucial to conduct regular inspections:

The most common mistakes that Landlords make and how to avoid them: