What Makes a Tenant Referencing Report Reliable (And What to Watch Out For)

In today’s property market, estate agents can't afford to take chances with tenant screening. With 36% of UK landlords experiencing rental arrears in the last 12 months and average eviction costs reaching £2,000-£3,000, a single weak tenant reference can lead to late payments, legal disputes, or months of lost rental income.

Worse, relying on superficial or outdated referencing reports could expose you to compliance risks with penalties up to £20,000 per occupier for Right to Rent breaches and reputational damage.

In this post, we break down what makes a tenant referencing report truly reliable—and how to spot the gaps in lower-quality reports that could cost you down the line.

The foundation of any good referencing report is data you can actually verify. With UK rent averaging £1,287/month and supply constraints driving competition, you need reports that contain:

Real-time credit data from trusted bureaus

Look for reports that access current information from FCA-regulated credit reference agencies like Experian, Equifax, and TransUnion—not outdated summaries or generic credit scores that miss recent County Court Judgements (CCJs).

⚠️ Watch out for: Reports showing only basic credit scores without detailed adverse history or those using outdated data sources.

Verified affordability assessments based on accurate rent-to-income ratios

Professional reports should show clear affordability calculations (2.5x monthly rent requirement) with verified income sources. With tenants spending average 36.3% of wages on rent, this calculation is critical.

⚠️ Watch out for: Reports that use self-declared income figures without verification, or those missing clear affordability pass/fail criteria.

Employer verification using direct contact checks

Strong reports show actual employer contact and verification—not just payslip validation. Some providers now use Open Banking verification for additional income authentication.

⚠️ Watch out for: Reports relying solely on uploaded payslips without independent employer confirmation.

Landlord references that are validated for authenticity

Quality reports should demonstrate actual previous landlord contact and verification. Given that most landlords won't let to tenants with arrears history, reference authenticity is crucial.

⚠️ Watch out for: Generic reference confirmations without specific landlord contact details or rental payment history.

Right-to-Rent checks that meet current legal requirements

Reports must include compliant Right to Rent documentation with proper identity verification, especially important since penalties increased to £20,000 per occupier in February 2024.

⚠️ Watch out for: Basic identity checks that don't meet biometric verification standards or missing immigration status confirmation.

When referencing reports contain incomplete, unverifiable, or self-declared data, their protective value drops—no matter how professionally they're formatted.

Good reports don’t just dump data—they provide a clear summary of findings. A reliable report should offer:

• A concise overview of key risks or red flags
  
• A recommendation (e.g., proceed, proceed with guarantor, do not proceed)
  
• Transparent scoring or confidence levels
  
• A compliance-ready paper trail
  

This allows letting agents to make faster, defensible decisions and share outcomes with landlords confidently.

Too often, referencing reports skip critical verification steps due to cost pressures, speed requirements, or provider limitations. With 194 estate agents fined over £1 million for compliance failures in 2024, gaps in reports can leave agencies dangerously exposed.

Be wary of reports that:

Don't include PEPs/sanctions screening: Anti-Money Laundering regulations require Politically Exposed Persons checks for enhanced due diligence—missing these creates compliance risks.

Skip thorough landlord reference follow-up: Superficial reference checks miss crucial rental payment history that could predict future arrears.

Only verify identity passively: Basic name-matching fails to meet Right to Rent biometric requirements for document authenticity verification.

Rely solely on applicant-provided income evidence: Without employer verification or Open Banking data, affordability assessments become unreliable guesswork.

Lack guarantor verification when required: Incomplete guarantor checks (missing the standard 3x rent income requirement) create false security.

A reliable referencing provider ensures that each core verification area is independently checked, not assumed or abbreviated.

A reliable referencing report reflects how people actually rent in 2025. Quality reports should properly handle:

• Joint applications (e.g., couples, housemates)
  
• Guarantors (individual vs joint support)
  
• Multi-source income checks (e.g., employment + self-employment)
  
• Fast turnaround without cutting corners
  

Modern referencing should be built for real-world cases—not one-size-fits-all templates.

⚠️ Watch out for: One-size-fits-all report templates that don't properly assess complex modern tenancy arrangements or shared financial responsibilities.

When something in a referencing report feels unclear or questionable, a professional provider won't leave you guessing about critical tenant decisions.

You should expect:

Access to the actual verification team

You should be able to speak with specialists who conducted the checks and can explain specific findings or concerns.

Quick clarification and re-verification options

Professional providers offer rapid follow-up verification when circumstances change or additional questions arise about applicant suitability.

Real-time progress notifications

Quality services provide live updates as verification progresses, keeping you informed about timeline and any issues encountered.

Regulatory compliance guidance

Providers should offer support on Right to Rent requirements, GDPR obligations, and AML compliance for complex cases.

⚠️ Watch out for: If you're left chasing support via generic email addresses or unsure how verification decisions were made, it's a sign the provider isn't backing their own report quality.

In tenant referencing, report reliability isn't a bonus feature—it's the essential baseline that protects against £2,000+ eviction costs and £20,000 compliance penalties. By demanding reports with verifiable data, complete verification checks, and responsive expert support, you reduce risk and build stronger landlord relationships.