Tenant referencing is the process of checking the potential suitability of an applicant for a landlord's property. The process involves checking their ID, credit, residential history, and income and affordability.

Tenant referencing is the process of checking a prospective tenant’s financial situation, identity, and rental history before a tenancy begins. The typical tenant referencing process works like this:

Application submission - You provide information about your identity, employment, income, and address history.

Verification checks - The referencing provider verifies your identity and confirms your employment or income.

Credit and affordability checks - Your credit history and income are reviewed to assess whether the rent is affordable.

Referencing report - A report is produced for the landlord or letting agent to help them decide whether to proceed with the tenancy.

The process is usually completed online and can take anywhere from a few hours to a few days, depending on how quickly documents and references are confirmed.

Common types of tenant referencing include:

• Credit checks - A credit check reviews a tenant’s credit history to identify missed payments, county court judgments (CCJs), bankruptcies, or other indicators of financial risk.

• Employment and income verification - This confirms the tenant’s employment status and income level to ensure they can afford the rent.

• Landlord references - Previous landlords may be contacted to verify rental history, payment reliability, and property care.

• Identity checks - Identity verification confirms the tenant is who they say they are and may also support Right to Rent compliance.

• Affordability assessments - Referencing providers assess whether the tenant’s income meets affordability thresholds for the rent.

Professional tenant referencing services, such as Goodlord, combine these checks into a single streamlined process for letting agents and landlords.

A tenant referencing credit check reviews a tenant’s financial history to assess the likelihood that they will pay rent on time. A typical tenant credit check in the UK includes:

• Credit score and credit profile

• Outstanding debts and credit commitments

• Missed payments or defaults

• County Court Judgments (CCJs)

• Bankruptcy or insolvency records

• Address history

You can choose our Essential tier for your student applicants, as this simply does a credit and ID check, allowing you to complete their reference and request a guarantor quickly. Any guarantors will then follow a similar referencing journey to the tenants on the Goodlord platform.

Open Banking enables tenants to securely share their financial data straight from their bank account with referencing providers. With a single, read-only connection to verified account information, providers can quickly assess a tenant’s financial situation. This significantly speeds up the referencing process, often allowing checks to be completed within the same day.

Note: Tenants must have online or mobile banking set up to use Open Banking.

Launched in 2017 by the Competition and Markets Authority (CMA), Open Banking was designed to give consumers more control over their financial data by letting them safely share transaction details with approved third-party providers. These trusted providers can then offer services that save users time and money.
Every third-party provider must pass strict checks and receive authorisation from the Financial Conduct Authority (FCA) (or the equivalent regulator in Europe) before gaining access to data such as bank transactions, credit card activity, and loans.

In the lettings sector, Identity Document Validation Technology (IDVT) is used to digitally check tenants’ identity documents, such as passports and driving licences.

It also plays a crucial role in confirming a tenant’s right to rent, addressing the limitations of manual checks. These services are delivered by government-certified Identity Service Providers (IDSPs).

IDVT relies on a combination of advanced digital tools to spot fraud and verify authenticity, including:

• Biometric verification - Uses facial recognition to confirm that a tenant’s appearance matches their official documents.
  
  
• Remote right-to-rent checks - Enables tenants to complete the process online, without needing to be physically present.
  
  
• Liveness and visual analysis - Confirms that the person being checked is physically present and not using a static image or pre-recorded video.
  
  
• Amberhill database check - Matches identity documents against the UK police database to identify those that are lost, stolen, or fraudulent.
  
  
• NFC passport chip reading - Instantly validates passport data using a mobile device.

Together, these features make IDVT a faster, more secure, and more accurate way to confirm tenant identities, keeping you compliant while making the process simpler and more convenient for applicants.

In the UK, tenant referencing fees are paid by the landlord or letting agent, rather than the tenant. Under the Tenant Fees Act 2019, tenants cannot usually be charged for referencing checks. Landlords and agents therefore cover the cost of tenant referencing as part of the tenancy setup process. Many letting agents include referencing within broader tenancy management services.

Choosing the best tenant referencing company in the UK depends on reliability, compliance, and speed.

When comparing tenant referencing providers, landlords and letting agents should consider:

• Accuracy and reliability - Look for providers that combine credit data, income verification, and affordability checks.

• Speed of referencing decisions - Fast referencing helps reduce void periods and speed up tenant move-ins.

• Compliance and regulatory checks - The best tenant referencing companies include identity verification, Right to Rent support, and sanctions screening where relevant.

• Integration with letting workflows - Platforms that integrate referencing with tenancy agreements and compliance processes can save time.

• Transparency and reporting - Clear referencing reports help landlords make informed decisions.

Providers such as Goodlord offer a fully integrated approach, combining referencing, compliance checks, and tenancy workflows.

Many letting agents choose Goodlord tenant referencing because it combines credit checks, affordability assessments, employment verification, and compliance checks within a single digital platform. Goodlord verifies income directly at source with integrations directly into HMRC, and payroll providers that are used by many large UK employers such as NHS, Tesco, and more. This helps agents manage the entire pre-tenancy process efficiently, while minimising fraud risk.

Tenant referencing fees vary between providers depending on the scope of checks included. Typical pricing differences depend on:

• The number of checks included (credit, employment, landlord references)

• Speed of service

• Integration with tenancy platforms

• Additional compliance checks such as sanctions screening or identity verification

Some referencing providers charge per tenant, while others bundle referencing into wider tenancy management platforms. Many letting agents choose Goodlord tenant referencing because referencing is integrated into the broader tenancy workflow, which can reduce administrative costs and simplify processes.

Landlords in the UK can obtain tenant referencing services through:

• Letting agent - agents provide tenant referencing as part of their tenancy setup process.

• Specialist tenant referencing companies -  Independent referencing providers carry out credit checks, employment verification, affordability checks, and identity verification.

If you fail tenant referencing, it doesn’t always mean you won’t be able to rent the property.

Tenant referencing assesses whether you can afford the rent and whether there are any financial or identity risks. If a referencing check raises concerns, the letting agent or landlord may still offer alternative options, such as:

• Asking for a guarantor who agrees to cover the rent if you cannot
• Requesting additional information about your income or employment
• Adjusting the tenancy terms in some cases

The final decision about whether to proceed with the tenancy is usually made by the landlord, using the information provided in the tenant referencing report.

There are several reasons why someone might not pass tenant referencing. Common reasons include:

• Affordability concerns - Your income may not meet the affordability threshold required for the rent.

• Poor credit history - This could include missed payments, County Court Judgments (CCJs), or other financial issues.

• Unverifiable income or employment - If your income cannot be confirmed by an employer or supporting documents, the referencing provider may not be able to complete the checks.

• Incomplete information - Missing documents or incorrect details can sometimes delay or affect the referencing process. 

Even if one of these issues appears in your tenant referencing checks, a landlord may still choose to proceed with the tenancy if other arrangements, such as a guarantor, are in place.

After tenant referencing is complete, the landlord or letting agent reviews the referencing report.

There are usually three possible outcomes:

• Passed - Your referencing checks meet the requirements, and the tenancy can move forward.

• Passed with conditions - The landlord may request a guarantor or additional information before proceeding.

• Not passed - The landlord may decide not to proceed with the tenancy based on the referencing report.

If the referencing checks are successful, the next steps usually include signing the tenancy agreement, arranging the deposit, and confirming the move-in date.

Yes. Goodlord tenant referencing is a widely used referencing service in the UK lettings industry. Trusted by over 3,000 letting agents, Goodlord is a reputable provider.

Goodlord tenant referencing helps letting agents and landlords streamline the tenant screening process. Key benefits include:

• Faster referencing decisions - Automated workflows and digital verification help speed up tenant referencing.

• Integrated tenancy workflows - Referencing is connected to contracts, compliance documents, and tenancy setup.

• Reliable affordability assessments - Income verification and financial checks help ensure tenants can afford the rent.

• Reduced administrative workload - Agents can manage referencing within the same platform they use for tenancy progression. 

• Compliance support - Identity verification and regulatory checks help agents remain compliant with UK lettings legislation.

Your referencing reports will include one of our referencing recommendations: pass, conditional pass, or fail.

30% of Goodlord’s references are returned instantly, 70% within 24 hours, and 90% within 72 hours. 
In the lettings industry, a typical tenant referencing process usually takes two to five working days, and often longer in sectors like retail, banking, or the public sector, where corporate processes can be slow. This timeframe allows for identity verification, credit checks, income verification, and reference checks from previous landlords and employers.

Although completing checks in just two days is ideal, many agents and tenants experience delays. Missing information, slow responses, and communication issues can extend the process - especially when a referencing provider lacks a well-structured system to manage applications efficiently.

Sanctions checks are available via Goodlord. This is now a mandatory requirement for letting agents in the UK.

Yes. AI plays an important role in Goodlord’s referencing process, helping to deliver faster, more reliable outcomes.

AI is used to analyse data from sources such as Open Banking and payroll integrations, and streamline affordability checks. This reduces reliance on easily falsified documents like payslips and speeds up the overall referencing journey.

However, nothing is left to chance. Every reference is supported by robust verification processes, trusted data sources, and expert review where needed.

Our referencing combines AI-powered analysis with experienced referencing professionals to ensure decisions are accurate, consistent, and fully insurable.

This approach gives agents greater confidence in their tenants, while protecting landlords’ income and reducing risk.

Goodlord is the NRLA’s official and exclusive tenant referencing partner. The NRLA became the first organisation to adopt Goodlord’s Public Referencing API, which embeds Goodlord’s industry-leading tenant referencing directly into the NRLA platform.

This integration will power all future referencing services for members, providing quick, reliable tenant checks - without requiring them to use Goodlord’s full software suite.