Tenant Failed Referencing? Here’s What To Do 

Having good tenants in your rented property makes your life as a landlord easier and it can also help to avoid the financial implications of missed rent. Tenant referencing plays a key role in determining which tenants are less likely to be unreliable but if your tenant failed referencing, you can still explore protection solutions. 

Properties in London areas such as Harold Hill and Collier Row typically have a high demand from prospective renters. This means that you will often be able to choose from a pool of interested tenants and thorough referencing checks could help you to identify reliable and responsible tenants. With Section 21 evictions now abolished, it is harder to evict problem tenants, so thorough referencing has become even more important. 

You might think that you have found the perfect tenant for your buy-to-let property. They are charming, presentable, in a good job, and ready to move in when you need them, but what if the worst happens and they fail the reference checks? 

We explore the options and look at what you should do next. 

What Is Included In Tenant Referencing? 

Referencing helps landlords decide whether a prospective tenant is suitable to rent their property. Specifically, does the tenant have the means to pay rent each month and will they take care of the property? As well as checking affordability, additional checks can provide a stronger indication of the risk level of tenants. 

This is a typical tenant referencing checklist: 

• Check identity and proof of address – Ask tenants for photo ID (either passport or driving license) and address proof (a recent bill, bank statement or driving license). 
• Complete an affordability check – Ask for their last three months’ payslips and bank statements. This should give you a good idea of whether they can afford the rent. Most landlords require monthly earnings to be two and a half times the rent. 
• Perform a credit check – Pay a credit check agency to produce a credit report for your potential tenant. The UK has three main credit reference agencies — TransUnion, Equifax, and Experian. The credit check will show how much debt they have, whether they have paid their bills on time and if they have any CCJs (County Court Judgements). 
• Obtain an employment reference – Ask for a letter from the tenant’s employer confirming they are in full-time permanent employment. Check the information is accurate by calling the company directly. 
• Obtain previous landlord references – If your potential tenant has rented a home before, ask for a reference from their last landlord. Don’t just take the letter at face value. Contact the landlord to verify the information. You can also check with the land registry that the landlord’s name is the same as on the title deeds. 
• Conduct a right to rent check – It is a legal requirement for all landlords to check that their tenants can live in the UK. Not completing a right to rent check for required tenants carries a potential £20,000 fine per occupant. Read more on the gov.uk website. 

You can complete reference checks yourself, or a letting agent or referencing agency can do them on your behalf. Be aware that under the Tenant Fees Act 2019, landlords are not allowed to charge tenants a fee for referencing. 

How Long Does Tenant Referencing Take? 

The timeline is typically around 3-5 days to complete the referencing checks but sometimes this can be held up by waiting for responses from previous landlords or employers. If the tenant requires a guarantor, it may also take longer to perform additional checks on them.  

Why Is Tenant Referencing Important? 

Tenant reference checks help landlords ensure that they have the best tenants in place, that their property will be looked after, and that the rent will be paid in full and on time. 

Missed rent payments can have significant financial implications and if you rely on rent payments to pay the buy-to-let mortgage, this could cause you financial difficulties. 

Under the Renters’ Rights Act 2025, Section 21 evictions were abolished from 1 May 2026, limiting the eviction route to using a Section 8 with specified grounds. Evictions for rent arrears require at least 2 months of rent arrears to be accrued and the landlord must provide 4 weeks’ notice, so the new eviction processes will potentially be longer if your tenant gets into rent arrears. This adds greater importance to completing diligent reference checks upfront. You can find out more about how long it takes to evict a tenant in our detailed article. 

Reference checks will help to flag potential issues with a tenant’s ability to pay rent, such as an adverse credit history where they have not paid previous rent payments or bills. The results of the refence checks will enable you to choose an alternative tenant who is less likely to miss rent payments. 

Robust tenant referencing is often a condition of buy-to-let mortgages and landlord insurance policies to avoid having high-risk tenants in properties they provide a mortgage or insurance cover for. 

What If My Tenant Has Failed The Affordability Check? 

The affordability check ensures that the tenant can afford to pay monthly rent. Tenants will fail the affordability check if their monthly income is less than two and a half times the rent. 

However, the tenant may have savings they plan to use for paying the rent. Or, they might be financially supported by parents or another family member. 

If your applicant fails the affordability check, ask them to provide a guarantor who will pay the rent if they cannot. You should perform the same reference checks on a guarantor as you would for a tenant. If the proposed guarantor fails the reference checks, we advise you to search for an alternative tenant. 

Another option is to grant the tenant a six-month tenancy and ask for the rent to be paid upfront. 

Want to become a more informed landlord? Take a look at finding tenants for a rental property and how to rent out a property. 

What If My Tenant Has A Low Credit Score? 

A poor credit rating is an immediate red flag but may not be a deal-breaker. A big part of the credit rating is the length of credit history. So, if your potential tenant has no loans or a credit card, they may get a low score. Payment history is the most critical aspect of a credit rating, and even one late payment can have a negative impact. 

When deciding whether to accept a tenant who failed a credit check, look at the credit rating in the broader context of their other references. Some young people can have a great job with a good salary but still have a low credit score simply because they have never had any debt. 

Is Rent Guarantee Insurance A Solution To A Failed Reference Check? 

When you apply for rent guarantee insurance, the insurer will generally require the tenant to have reference checks, and most insurers will not insure you for a high-risk tenant. Therefore, you would not usually be able to take out rent guarantee insurance if a tenant failed referencing. The insurer may request that the tenant provides a guarantor, and they will need to pass the reference checks. 

Even if you find an insurer who agrees to take on the risk, there will usually be exclusions on the policy. 

For example, there are often deferral periods such as the first month of rent arrears. You may also need to pay an excess fee when you claim, which would leave you out of pocket. 

If you want to fully protect your property from the uncertainties of the rental market, then consider our comprehensive Guaranteed Rent Scheme – which goes further than simple insurance policies. 

What If My Tenant Has No Proof Of Address? 

Part of checking the applicants are who they say they are is verifying their current and previous addresses. The most commonly accepted documents are: 

1. A recent utility bill (not mobile phone) 
2. Council tax bill issued in the current year 
3. UK driving license 
4. Recent bank or credit card statement 
5. Previous tenancy agreement 

If they can’t prove their address, this can result in a failed tenant reference check. Though there are legitimate reasons why a tenant might struggle to provide these. For instance, if they are moving to the UK from abroad or have been living with a partner, but have not been added to the utility or council tax bills. 

At a minimum, all applicants should be able to provide a letter from their bank. We suggest looking for an alternative tenant if they cannot do this. 

Want to become a more informed landlord? Learn about a landlord’s right to enter a property and sending a landlord warning letter to a tenant. 

What If My Tenant Has A Poor Reference From A Past Landlord? 

If your prospective tenant has previously lived in rented accommodation, a reference from their previous landlord can be invaluable. It can assure you that the tenant has a history of paying their rent on time and looking after their home. 

That said, don’t rush to judgement if your applicant cannot provide a reference from their landlord, as there can be legitimate reasons for this. 

If they receive a bad tenant reference check from their previous landlord, you should probably steer clear of renting your property to them. 

Should You Use A Tenant Referencing Agency? 

Whether you choose to do it yourself or to use a tenant referencing agency comes down to whether you have the time to work through all the processes and get up to speed with the legal obligations. 

Using an agency will obviously mean paying for services but the costs are likely to be worthwhile if it means you don’t face costly issues like going through court to evict a problem tenant.  

It is common for first-time landlords and landlords who have many applicants to use a tenant referencing service. Also, in more complex cases such as if you have an applicant with complex income or someone who has recently moved to the UK, a referencing agency or letting agent will help navigate the more complex elements of these checks. 

Our team at Sandra Davidson can support you with tenant referencing, legal compliance and all aspects of tenant management.  

HMO Tenant Referencing: What’s Different? 

For landlords of HMOs, tenant referencing is slightly different, as you are assessing individual tenant affordability rather than combined household affordability. Another key consideration is the compatibility between different tenants. For example, tenants with contrasting lifestyles or working patterns could lead to issues and higher turnover.  

Tenant Referencing Checklist 

As a final takeaway, these are the key areas to cover on your tenant referencing checklist: 

• ID 
• Affordability check  
• Credit check 
• Employment references 
• Previous landlord references 
• Right to rent checks 

Find Out More 

If you are a landlord in London areas including Collier Row, Upminster and Romford, we can help you find the right tenant and undertake all the reference checks on your behalf. Click to learn more about the services we offer landlords, or contact our friendly team today.