Why Tenant Referencing Matters

Good tenants are the foundation of successful property investment. Proper referencing reduces risks of rent arrears, property damage, and legal disputes.

What to Check

1. Identity Verification

• Valid passport or driving licence
• Proof of current address
• Right to Rent check (legal requirement)

2. Employment/Income

• Employment contract or letter
• Recent payslips (3 months)
• Bank statements showing salary
• Affordability: rent should be <35% of gross income

3. Previous Landlord Reference

Ask previous landlords:

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

4. Credit Check

A credit check reveals:

• Payment history
• CCJs (County Court Judgments)
• Bankruptcies
• IVAs (Individual Voluntary Arrangements)

5. Employer Reference

Confirm:

• Employment status
• Length of employment
• Salary
• Contract type (permanent/temporary)

Red Flags to Watch For

⚠️ Warning signs:

• Gaps in rental history
• Reluctance to provide references
• Poor credit score
• Income below 2.5x rent
• Previous evictions
• Inconsistent information
• Pressure to skip checks

DIY vs Professional Referencing

DIY Referencing

Pros:

• Lower cost
• Direct contact with references
• More control

Cons:

• Time-consuming
• May miss issues
• No credit check access

Professional Services

Pros:

• Comprehensive checks
• Credit bureau access
• Legally compliant
• Time-saving

Cons:

• Cost (£15-50 per applicant)
• Less personal

Right to Rent Checks

Legal requirement for all adult tenants:

1. See original documents
2. Check validity
3. Take copies
4. Record check date
5. Repeat for time-limited permissions

Acceptable documents:

• UK/Irish passport
• EU Settlement Scheme status
• Biometric residence permit

Making the Decision

Consider:

• Overall picture, not single factors
• Gut instinct alongside data
• Whether guarantor could mitigate risks
• Future tenant plans

Roost Tenant Management

• Application forms - Collect tenant info digitally
• Document verification - Secure storage of ID checks
• Reference tracking - Log and monitor responses
• Right to Rent reminders - Never miss a follow-up check