Preparing for reference checks

When your offer on a rental property has been accepted, the next step is tenant referencing. This is the process that confirms you can reliably pay rent, verifies your employment and income, and checks your rental history. Most tenancies can’t progress until referencing is completed, so being prepared helps avoid delays.

What does tenant referencing involve?

Once the offer terms are agreed, the tenancy becomes subject to successful referencing. Depending on the agent, the checks may be carried out directly by the letting agent or by an external referencing company. You will need to provide consent before your information can be shared. Your application cannot proceed until this consent has been given.

Information you’ll need to provide for referencing

During referencing, you will usually be asked to provide:

Personal details

Your basic personal information and address history.

Employment information

Details about your employer, your income, and whether you are currently in a probation period. The referencing provider will contact your employer to confirm these details.

Previous landlord information

Your previous landlord may be contacted to confirm that rent payments were made on time and that the property was kept in good condition.

Credit check

A credit check will be carried out to identify any past issues with missed or late payments.

Affordability criteria

To pass affordability checks, your income must meet the minimum threshold set by the referencing provider. This is typically assessed at around 40% of your income. So, this means:

• Your monthly gross income should be at least 2.5 times the monthly rent, or
• Your annual gross salary should be at least 30 times the monthly rent.

If more than one person will be named on the tenancy, affordability may be assessed jointly. If you are splitting the rent unequally, your share may be assessed individually.

Be transparent from the start

All details you provide will be verified. If you are in a probation period, have had financial issues in the past, or previously paid rent late, it is important to disclose this upfront. If something is discovered later that you did not disclose, it may negatively affect your application.

Other referencing options

If your financial history or income makes referencing difficult, there may be alternative options. Some landlords may accept rent being paid in advance. Others who use a manual referencing approach may request written references from:

• Your employer
• Your bank
• Your previous landlord
• Copies of recent bank statements

Manual referencing can take longer, so it is helpful to prepare these documents in advance if you think they may be required.

How to prepare for referencing in advance

To help your referencing progress quickly, try to gather important documents early in your rental search. Commonly requested items include:

• Employment details
• Recent bank statements
• Address history
• Landlord reference information
• Proof of income

Having these ready will help ensure your application can be processed without unnecessary delays.

Outcomes of referencing

There are usually three possible outcomes:

Pass

You meet the referencing criteria and can proceed with the tenancy.

Pass with conditions

You may be asked to provide a guarantor or pay a portion of rent in advance.

Fail

You do not meet the criteria and the tenancy may not be able to proceed.

FAQs

• What is tenant referencing?

  Tenant referencing is the process a landlord or letting agent uses to confirm that you can afford the rent, have a stable income, and have a positive rental history. It normally happens after your offer on a property has been accepted.

• Who carries out the reference checks?

  Checks may be carried out directly by the letting agent or by an external referencing company. You must give consent before your information can be shared.

• What information will I need to provide?

  You will usually need to supply your personal details, employment information, income details, and contact information for your previous landlord. You will also undergo a credit check.

• Why is a credit check required?

  A credit check helps confirm that you have a history of paying bills on time and do not have outstanding financial issues that could affect your ability to pay rent.

• What are the affordability requirements?

  Most referencing providers check that your monthly gross income is at least 2.5 times the monthly rent, or that your annual salary is at least 30 times the monthly rent. For joint tenancies, affordability may be assessed as a group or individually depending on how rent is split.

• What if I am in a probation period at work?

  You must disclose this, as the referencing company will ask your employer to confirm your employment status, probation details, and salary.

• Will my previous landlord be contacted?

  Yes. Your previous landlord may be asked to confirm that your rent payments were made on time and that the property was looked after.

• What happens if I have had financial difficulties in the past?

  You should be honest about any past issues. Undisclosed problems that are discovered later can negatively impact your application.

• How can I prepare in advance?

  Gather key documents early, such as bank statements, employment information, landlord references, and proof of income, to avoid delays during the application process.

• What are the possible outcomes of referencing?

  There are three common outcomes:

  • Pass: You meet the criteria for renting the property and can proceed.
  • Pass with conditions: There may be certain conditions required before you can rent the property, such as having a guarantor.
  • Fail: The referencing requirements for renting the property haven’t been met.