## Preparing for Tenant Referencing Under the Renters’ Rights Act

The Renters’ Rights Act is set to become statute on 1 May 2026, prompting landlords across the UK to reassess their tenant referencing procedures. This legislation will bring new responsibilities and standards for landlords, making it essential to establish robust tenant screening practices that align with legal requirements and protect rental investments.

One landlord, Kay, has outlined a detailed referencing process she intends to follow to ensure prospective tenants meet the necessary criteria. Her approach reflects a thorough vetting system designed to mitigate risks and comply with the anticipated regulatory environment.

## Comprehensive Tenant Referencing Measures

Kay’s referencing strategy includes requesting at least ten months’ worth of bank statements from prospective tenants. This financial documentation provides insight into the tenant’s income stability and spending habits, helping landlords assess affordability and reliability.

In addition to financial records, Kay requires the tenant’s National Insurance (NI) number. This information can be used to verify identity and employment status. She also obtains a reference from the tenant’s previous landlord, which is cross-checked against the landlord’s name and address on the HM Land Registry title register for a small fee of £3.00. This step helps confirm the authenticity of the reference and the legitimacy of the previous landlord.

Further checks include a bankruptcy search conducted via The Gazette, which is free of charge, and a full credit report to assess the tenant’s financial history and creditworthiness. Employment references and wage slips are also requested, with particular attention to any attachment to earnings orders that might affect the tenant’s ability to pay rent.

## Guarantor Requirements and Insurance References

To add an extra layer of security, Kay insists that every new tenancy includes a guarantor. The guarantor undergoes the same referencing process as the prospective tenant, ensuring that there is a reliable party responsible if the tenant defaults. Kay also utilises her insurance company as a reference point for Rent Guarantee Insurance (RGI), which can provide additional protection against rent arrears.

Kay emphasises that she is registered with the Information Commissioner’s Office (ICO), ensuring that all personal data collected during the referencing process is handled in compliance with data protection laws.

## Implications for UK Landlords

The detailed referencing approach shared by Kay illustrates the level of diligence landlords may need to adopt under the Renters’ Rights Act. Thorough tenant screening can reduce the risk of rent arrears, property damage, and legal disputes, which are likely to be scrutinised more closely under the new legislation.

Landlords should consider reviewing and possibly enhancing their referencing procedures ahead of May 2026 to ensure they meet the expected standards. This may involve requesting more comprehensive documentation, verifying references more rigorously, and incorporating guarantors as standard practice.

## Seeking Broader Landlord Perspectives

Kay’s post invites other landlords to share their thoughts and strategies regarding tenant referencing under the forthcoming Renters’ Rights Act. This exchange of ideas can help landlords collectively prepare for the changes and adopt best practices that safeguard their interests while complying with new legal obligations.

Suggested internal link anchors

– Renters’ Rights Act
– tenant referencing
– guarantor requirements
– Rent Guarantee Insurance
– bankruptcy check
– credit report
– HM Land Registry
– Information Commissioner’s Office
– tenancy agreements
– landlord references
– tenant screening
– rent arrears prevention

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/