What does a tenant reference check actually include? A complete breakdown
We sometimes hear from agents and landlords who think a tenant reference is basically just a credit check. And while a credit check is certainly part of it, a proper reference covers a lot more ground than that. Given how much is riding on getting the right tenant - particularly with the changes coming under the Renters' Rights Act - we thought it'd be worth laying out exactly what's involved.
Every referencing company does things slightly differently, so what follows is how we do it at Vorensys. We've been refining this process since 2008 and we think it strikes the right balance between being thorough and being practical.
Credit history
This is the foundation of any reference. We pull three years of credit history through Equifax, one of the UK's three main credit reference agencies. This shows us whether the applicant has any County Court Judgements (CCJs), Individual Voluntary Arrangements (IVAs), bankruptcies, or a history of missed payments. We also get their credit score, which gives a general picture of how reliably they've managed credit in the past.
It's worth noting that a less-than-perfect credit score doesn't automatically mean a tenant will be a problem. We present the facts in our report and let the agent and landlord make the decision. Context matters - a single missed phone bill payment five years ago is very different from an active CCJ.
Income and affordability
Knowing that a tenant earns enough to comfortably cover the rent is arguably just as important as their credit history. The general rule of thumb in the industry is that a tenant's gross income should be at least two and a half times the monthly rent.
We verify income in one of two ways. The fastest is Open Banking - with the tenant's consent, we connect securely to their bank and pull verified transaction data. This shows us exactly what's going in and out of their account, and it's far more reliable than a payslip (which, let's be honest, can be fabricated). The whole thing takes about thirty seconds from the tenant's perspective.
For tenants who prefer not to use Open Banking, we contact their employer or accountant directly to confirm their salary. For self-employed applicants, we'll usually ask for the last two years of accounts or tax returns, verified by their accountant.
Previous landlord reference
We contact the applicant's current or most recent landlord to verify the tenancy dates, monthly rent and whether it was paid on time. We also ask whether there were any issues - property damage, complaints from neighbours, breach of tenancy terms - and whether they'd let to the tenant again.
This is one of the most valuable parts of the reference, in our experience. A credit check tells you about someone's financial history; a landlord reference tells you what they're actually like to have in your property.
Identity verification
Confirming that the applicant is who they say they are is obviously important, not least because of right to rent requirements. We offer two approaches: digital ID verification through our partnership with Yoti, which uses biometric checks and document scanning to verify identity in minutes, or traditional document checking where the agent verifies ID in person and uploads copies to our platform.
Digital ID is faster and, frankly, more reliable. Yoti checks the 'liveness' of the applicant (to make sure they're a real person and not a photograph), scans their identity documents and uses AI to verify that the person and the documents match. It's the same technology used by banks and government services.
Bank account validation
We check that the bank account details provided by the applicant are genuine and match their identity. This catches a surprisingly common type of fraud where applicants provide someone else's bank details to make their financial position look stronger than it actually is.
AML and sanctions screening
Anti Money Laundering checks cross-reference the applicant against financial sanctions lists, politically exposed persons (PEP) databases and other watchlists. While AML checks aren't currently mandatory for all lettings, an increasing number of agents are choosing to include them as standard. Given the regulatory direction of travel, we think that's a sensible approach.
Fraud detection
This is something we've invested heavily in over the last couple of years. Our system uses AI-powered document analysis to flag potentially fraudulent bank statements, payslips, and other supporting documents. We've seen a marked increase in the sophistication of forged documents - some of them are genuinely difficult to spot by eye - so having automated detection is increasingly important.
The report
Once all the checks are complete, we compile everything into a clear, plain English report. No jargon, no ambiguous traffic-light systems that leave you guessing. We lay out the facts and give a clear recommendation. Reports are available through our online portal, and agents with dedicated account managers can call us to discuss any borderline cases.
If you'd like to see a sample report or try the process yourself, we offer a free trial for new customers. You can also check out our affordability calculator to get a quick estimate of whether a tenant's income meets the threshold before you start the formal referencing process.