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Guide to Tenant Referencing

A Guide to Tenant Referencing: What We Check and Why

Finding the right tenant is arguably the most important part of being a successful landlord. One wrong choice can lead to rent arrears, property damage, and legal disputes — all of which cost you time and money. That’s why tenant referencing is a critical step in the lettings process.

As a letting agent, we’re often asked what exactly we check during referencing, and why it matters. In this post, we’ll break it all down in simple terms, so you know exactly what to expect — and why it’s worth doing properly.

Why Tenant Referencing Matters

Tenant referencing gives landlords a clearer picture of who’s moving into their property. It helps reduce the risk of:

  • Missed rent payments
  • Damage to the property
  • Tenancy disputes
  • Anti-social behaviour
  • Lengthy (and costly) evictions

While no referencing system is foolproof, a thorough check greatly increases the odds of finding a reliable, respectful tenant.

What We Check During Tenant Referencing

Here’s a breakdown of the key checks we carry out as standard when referencing a tenant in Scotland:

1. Identity and Right to Rent

We start by confirming the applicant’s identity and their legal right to rent property in the UK. This usually involves:

  • Passport or driving licence
  • Visa (if applicable)
  • Proof of current address (such as a utility bill or bank statement)

⚠️ Note: While “Right to Rent” checks are a legal requirement in England, they are not currently mandatory in Scotland. However, as agents, we still verify identity and residency to protect our landlords from fraudulent applications.

2. Employment and Income Verification

We need to be confident that the tenant can afford the rent. As a rule of thumb, we look for a monthly income that is at least 2.5 to 3 times the monthly rent.

We’ll ask for:

  • Recent payslips (usually last 3 months)
  • Employer reference
  • Employment contract (in some cases)
  • For self-employed applicants: recent tax returns or an accountant’s letter

This gives us a clear picture of their financial stability and likelihood of paying on time.

3. Credit Check

A credit check is a key part of referencing. It highlights any red flags such as:

  • Missed payments
  • County Court Judgements (CCJs)
  • Bankruptcy or insolvency
  • High levels of unsecured debt

A poor credit score doesn’t always mean rejection, but it will usually require further discussion, and sometimes a guarantor or larger deposit.

4. Landlord References

If the applicant has rented before, we’ll contact their previous landlord or letting agent for a reference. We typically ask:

  • Did the tenant pay rent on time?
  • Was the property kept in good condition?
  • Were there any issues or complaints?
  • Would you rent to them again?

This is one of the best indicators of future behaviour — past performance often tells you what to expect.

5. Guarantor Checks (if required)

If the tenant is a student, has low income, or has a limited credit history, we may ask for a guarantor. This is someone who agrees to cover the rent if the tenant can’t.

We carry out the same checks on guarantors as we do on tenants — including ID, credit, and income — to ensure they can realistically support the tenancy if needed.

What Happens If a Tenant Fails Referencing?

Not every failed reference means a dead end. There are often options, depending on the issue:

  • A guarantor can be added to the tenancy
  • A larger deposit may be accepted
  • Rent can be paid in advance (e.g. 6 months upfront)

However, in some cases — such as proven fraud or serious past arrears — we’ll advise against proceeding, to protect your investment.

How Long Does Referencing Take?

On average, tenant referencing takes 48–72 hours, provided the tenant responds promptly and previous landlords or employers are quick to reply.

Our agency keeps landlords updated at every stage, so you’re not left guessing.

Tenant Referencing in 2025: What’s New?

With the cost of living still high in 2025, we’re seeing more cases where applicants just scrape by financially. That’s why affordability assessments are more important than ever — not just for you as a landlord, but also for the tenant’s wellbeing.

We’re also seeing increased use of digital referencing tools, which speed up the process while maintaining thorough checks. Still, we always apply a human judgment layer — it’s not just about what the software says.

Final Thoughts

Tenant referencing isn’t about being picky or unfair — it’s about protecting your property, your income, and your peace of mind.

A good tenant makes life easy. A bad one? Not so much.

As your letting agent, we take the time to get referencing right — because we know how costly it can be to get it wrong.

If you’re unsure whether to accept an applicant, talk to us. We’re here to advise, assess the risks, and help you make the right decision for your property.