Finding reliable tenants is one of the most important steps in successful property investment. A thorough vetting process protects your rental income, your property, and saves the stress of disputes down the line. This guide covers the legal requirements, practical checks, and modern tools available to landlords in 2026.
Legal requirements: what you must do
Before any tenant moves in, landlords in England have legal obligations that cannot be skipped:
Right to Rent checks
Since 2016, landlords must verify that all adult occupants have the legal right to rent in the UK. This applies to all new tenancies and requires checking original documents (passport, biometric residence permit, or share code from the Home Office online service).
Failure to conduct Right to Rent checks can result in fines of up to £20,000 per tenant, or criminal prosecution for repeat offences.
Deposit protection
Any deposit taken must be protected in a government-approved tenancy deposit scheme within 30 days. The three approved schemes are:
Landlords who fail to protect deposits cannot use Section 21 to regain possession (while it remains available) and may face penalties of up to three times the deposit amount.
Tenant referencing: the essentials
A proper referencing check typically includes:
- Credit check – shows payment history, outstanding debts, CCJs and bankruptcies
- Employment verification – confirms job title, salary and length of employment
- Previous landlord reference – confirms rent was paid on time and property was maintained
- Identity verification – confirms the applicant is who they claim to be
- Right to Rent – confirms immigration status
Most professional referencing services cost between £15 and £50 per applicant and return results within 24-48 hours.
Referencing services
Several providers offer comprehensive tenant referencing:
- OpenRent – free basic referencing with their platform
- Goodlord – full referencing plus rent guarantee options
- HomeLet – referencing with optional rent guarantee insurance
- Vouch – referencing with landlord dashboard
Using a professional service creates an audit trail and ensures consistent, legally compliant checks.
Affordability: can they pay the rent?
The standard affordability test is that a tenant’s gross annual income should be at least 2.5 to 3 times the annual rent. For a property at £1,200 per month (£14,400 per year), that means a minimum income of £36,000 to £43,200.
Request recent payslips or, for self-employed applicants, tax returns or accountant references. Bank statements can also help verify regular income.
If income falls short, a guarantor may bridge the gap – but the guarantor should meet the same affordability criteria.
Guarantors: when and how to use them
A guarantor agrees to cover rent and any damages if the tenant cannot pay. Guarantors are commonly requested for:
- Students or recent graduates with limited credit history
- Tenants with lower incomes or irregular earnings
- First-time renters without previous landlord references
- Applicants with minor credit issues
The guarantor should be a UK homeowner or have verifiable income of at least 3 times the annual rent. They must sign the guarantee agreement and should receive independent legal advice.
Renters’ Rights Act changes
Under the Renters’ Rights Act, blanket guarantor requirements are being restricted. From May 2026, landlords cannot require a guarantor simply because a tenant receives benefits or has a low credit score – there must be a specific, justifiable reason related to affordability or risk.
Red flags during the application process
Legitimate warning signs to watch for include:
- Reluctance to provide references – genuine applicants usually cooperate
- Gaps in rental history – may indicate previous disputes or evictions
- Inconsistent information – details that don’t match between application and documents
- Pressure to move in immediately – may be avoiding proper checks
- Offering to pay several months upfront – sometimes used to bypass referencing (also restricted under RRA)
- Unable to provide employer details – may indicate unstable employment
Decisions must be based on objective, documented criteria. Refusing a tenant based on protected characteristics (race, religion, disability, family status, etc.) is unlawful discrimination.
Viewing their current property
If possible, arrange to meet prospective tenants at their current home. This gives insight into how they maintain a property day-to-day. Look for general cleanliness, whether the property is reasonably well-kept, and any signs of damage or neglect.
This isn’t always practical – especially for tenants relocating from another area – but when possible, it adds useful context to the referencing results.
What to do if problems arise
Even with thorough vetting, issues can occur. If a tenant falls into arrears or breaches the tenancy agreement:
- Communicate early – many disputes can be resolved through conversation
- Document everything – keep records of payments, correspondence and property condition
- Seek mediation – services like those offered by NRLA can help resolve disputes without court action
- Understand possession grounds – familiarise yourself with Section 8 grounds for possession
- Get legal advice – if possession becomes necessary, specialist solicitors can guide the process
Checklist: before signing a tenancy
- Professional referencing completed (credit, employment, previous landlord)
- Right to Rent check completed and documented
- Affordability confirmed (income ≥ 2.5x annual rent)
- Guarantor in place if required (with their own referencing)
- Deposit amount agreed and protection scheme selected
- Tenancy agreement prepared with all required prescribed information
- How to Rent guide ready to provide
- Gas Safety Certificate, EICR and EPC available
Taking the time to vet tenants properly is one of the best investments a landlord can make. The upfront effort pays dividends in reliable rent payments, well-maintained properties, and fewer disputes over the course of the tenancy.
Last updated: February 2026
