Tenant referencing in the UK

Tenant referencing is a standard procedure undertaken by landlords or letting agencies in the UK to verify the suitability of a prospective tenant. It helps in assessing whether the tenant will be able to afford the rent, and whether they'll be reliable and responsible. The process usually involves checking the following:

1. **Credit History**: This involves looking at the tenant's past behaviour with regard to managing their debts and bills. If the tenant has a history of unpaid bills or debts, they may be considered a high risk.

2. **Employment Reference**: The landlord or agency will contact the tenant's employer to confirm their employment status and salary. This helps in establishing whether the tenant has a stable income and can afford the rent.

3. **Previous Landlord Reference**: The previous landlord can provide insight into whether the tenant was reliable in paying rent and maintained the property well. If there were any issues, the landlord might be hesitant to rent to that tenant.

4. **Affordability Assessment**: The tenant's income is compared to the rent. As a rule of thumb, the rent should not be more than 35-40% of the tenant's gross income.

5. **Identity Verification**: This involves checking the tenant's ID to ensure they are who they claim to be. This could involve checking a passport or driver's license.

6. **Right to Rent**: In the UK, landlords are legally required to check that all tenants have the right to rent property in the UK. This usually involves checking immigration status. If a tenant fails to pass these checks, the landlord may still rent to them but might request a guarantor. A guarantor is someone who agrees to cover the rent if the tenant fails to pay.

The information gathered during tenant referencing must be used in accordance with the UK's data protection laws. As of my knowledge cut-off in September 2021, this is the General Data Protection Regulation (GDPR) and the Data Protection Act 2018.