Tenant verification in the age of the Renters’ Rights Act

The extra importance of doing thorough tenant verification checks

By Tom Entwistle of LandlordZONE

With the Renters’ Rights Act 2025 (RRA) removing Section 21 “no-fault” evictions, the balance of power in England’s private rented sector has shifted decisively. Landlords will soon find that removing problem tenants becomes far more difficult, slower, and and often uncertain – it can almost be at the whim of a judge.

Thanks to Suzanne Smith (independlandlord.com) and the NRLA we now know that the commencement date of the new tenancy regime is Friday 1 May 2026. That’s when landlords are no longer able to serve a valid Section 21 notice and all tenancies become periodic ones. Investigatory rights for local authorities were effective from 27 December 2025 and the PRS Database and Ombudsman service is due late 2026. There’s no confirmation yet of when the Decent Homes Standard will become effective.

The importance of tenant verification

A modified Section 8 remains as the only route to possession, but only on specified grounds, all of which require hard evidence and a court trial. With such a system, rather than having to go through this arduous and often expensive process, it’s far better to try to avoid the problem by selecting only “good” tenants in the first place. 

Excellent tenant verification will be more important than ever. Once a tenancy begins, there will be no easy escape route when the new provisions apply after 1 May 2026. Prevention has become your greatest protection. This article sets out practical steps and proven methods for screening tenants effectively, to reduce your chances of getting a bad tenant, while staying within the law.  

Why is pre-tenancy screening so important?

The new legislation greatly restricts the circumstances in which a landlord can lawfully regain possession. Even when grounds exist — for rent arrears, anti-social behaviour or breach of contract for example — the process will rely on gathering solid documentary evidence, serving the right notice, and waiting for the courts to set a hearing date. Not something that happens fast these days as the courts are usually overloaded.

The courts are definitely congested. Delays of six to nine months are common in England, meaning landlords can easily lose a year’s rent before a possession order is granted. Add legal fees, property damage, stress, and the financial loss can easily run into thousands if not tens of thousands of pounds.

One bad tenant can destroy your financial record after years of steady returns. A good tenant will look after the property and always pay on time, though having said that, by far most tenants are good – Tom Entwistle says that in his experience, 95 per cent of tenants are good (19 out of 20), it’s the other 5 per cent you must try to avoid at all costs. 

The only way to secure the latter is through rigorous pre-tenancy screening — not a quick chat or a reference on trust, but a disciplined, methodical documented process which is legal and avoids any challenge of discrimination.

Government guidance for the Renters’ Rights Act says that the Act will: “Make it illegal for landlords and agents to discriminate against prospective tenants in receipt of benefits or with children – helping to ensure everyone is treated fairly when looking for a place to live.”  

However, there are two key aspects where landlords can legally discriminate: (1) on affordability grounds. Can the tenant easily afford the rent? (2) is the accommodation suitable for the tenant? For example, a small flat probably won’t suit a family, a tenant with a large dog or someone with a severe disability, if the only access is upstairs. 

The core principles of tenant verification

Verification starts with the first contact. If this is by telephone or in person, landlords should have a list of pre-qualification questions so every tenant gets asked consistently for the same information (anit-descrimination) and the answers are recorded at the time.

Trust and respect but observe and verify – don’t take anything at face value. It’s hard to be cynical when your natural human instinct is to trust a stranger, to believe their story, but it’s vital you don’t deviate from the script in this process – don’t be tempted to cut corners when you hear a great story, or you may live to bitterly regret it.

Document every step in case you are challenged later; paperwork is your best defence. And remember, you have responsibilities under the data protection laws – store and handle all information in line with the six principles of the General Data Protection Regulation (GDPR) and the Data Protection Act 2018.

The six principles: 

1. Individuals have rights like the right to access their data, correct it, erase it, and object to its processing. You should have a written complaints procedure.
2. Businesses must obtain consent, be transparent about data collection, limit data use to its intended purpose, and ensure data accuracy and security. 
3. Data protection applies to any organization processing the personal data of people in the EU (including in England), and not just those based in the EU. 
4. Non-compliance can result in significant fines of up to €20 million or 4 per cent of a company's annual global turnover. 
5. The GDPR took effect on May 25, 2018, replacing the previous Data Protection Directive. 
6. After Brexit, the UK adopted its own version, the UK GDPR, which is supplemented by the Data Protection Act 2018.

How to verify a tenant properly:

The initial enquiry and pre-screening

You could argue the initial screening begins with your advertisement which describes the type of accommodation and the amount of rent. Always keep in mind the discrimination laws. You can no longer legally ban Housing Benefit claimants, people with families or pets in advertisements. 

The next stage of screening comes with the first contact, when enquiries come in by phone or in person. You should ask a few polite but revealing questions:

• Employment status and income level
• Length of time in current and perhaps previous employment
• Reason for moving and desired tenancy length
• How many occupants and whether there is family, pets, smokers etc. 

This is where your people skills come in as well, to quickly assess the back story: do you detect evasive answers or refusal to give relevant information. Are the stories logical and consistent? Is there an urgency to move and offers of long rent payments up front or inconsistent stories. These are all red flags. A quick online search can sometimes highlight initial inconsistencies and you will get a “gut feel” about the prospect.

The viewing

If the prospective tenant is serious after they have received all the relevant information about the accommodation and the tenancy, then a viewing should be arranged. This is a time when your people skills really come to the forefront: facts are important but so often is “gut feel”. Is the person likely to tick all the relevant boxes when you have met them face to face? If so, move on but take note of social and behavioural cues.

Observation still counts. Did the applicant arrive on time for viewings? Are they polite, organised, and forthcoming with information? Within legal limits, a quick social-media check can highlight inconsistencies — but landlords must avoid discriminatory judgments or intrusion. The goal is to verify identity and credibility and to a minor extent, lifestyle.

Closing the sale should be with the first suitable applicant to come along. Little is more on a viewing, allowing the tenant to see for themselves and only point out the positives about the place. If everything seems good about the candidate and the prospective tenant likes the accommodation, they will usually decide there and then if they want it. If that is the case, move on to the next stage. Experience shows that if someone says they will come back later, they won’t. 

It is also a convenient time to formally interview the prospect in more detail at this stage, while they are with you, and before moving on to the formal checks. You should have a set of interview questions ready and a means of recording the answers there and then. Look for consistency in the information you are getting in relation to that you received earlier. 

At this stage you might decide to accept the applicant, subject to them passing the relevant checks.

The formal application form

Every prospect needs to complete a formal application form which gives you in writing all the relevant detailed background information to conduct more detailed checks. The tenant’s willingness to complete the form will determine how serious they are. The form evidences how every candidate provides the same data, reducing bias and improving documentation. It also gives you a third opportunity to look for consistency.

The form, among many other things, will ask for full name, date of birth, address history, employer, employment status and income details, emergency contact details, and previous landlord contact details for references. Crucially, the form also asks for consent to conduct credit and referencing checks following data-protection rules.

The detailed checks

Identity and Right to Rent Checks are now a legal requirement for any tenancy in England. Landlords have a legal duty to ensure that every adult occupant has the right to rent in the UK. Acceptable evidence includes a valid passport, biometric residence permit, or an online Home Office share code showing immigration status – follow the government guidance here: Landlord's guide to right to rent checks

Since 2024, most checks can be done digitally using certified Identity Service Providers (IDSPs). Copies of documents or digital confirmation must be kept for at least one year after the tenancy ends. Failing to conduct these checks properly can result in heavy civil penalties and, in extreme cases, criminal prosecution.

Credit and financial background checks

Bank statements are an effective way of assessing a tenant’s current financial position. A request for the last three months’ bank statement is quite usual. Look for the amount coming in each month and the amount going out, and importantly, regular outgoing payments. What’s left at the end of the month? 

Find and use a reputable credit reference company. Many of them now combine all the checks together – Right to Rent, credit and employer / landlord references. Some will also include social media searches. 

A credit report gives vital evidence of a tenant’s financial behaviour. They look for County Court Judgments (CCJs), insolvencies, and evidence of unpaid debts. Many agents apply the general rule that rent should not exceed 35 per cent of gross monthly income — a sensible affordability benchmark, though in some areas this may be too conservative.

Professional referencing agencies such as Experian, Equifax and Call Credit access credit databases and provide structured reports. They often include risk scores and fraud checks. However, even professional reports can miss issues, so you should review all the data critically.

A guarantor?

If there is any doubt about affordability or financial reliability, you should look elsewhere or insist on a guarantor. A guarantor must be credit-worthy themselves, so you need to also subject them to checks. They should be UK-based, ideally a homeowner and willing to sign a binding agreement. Some landlords now insist on a guarantor for all tenants.

Referencing

If you do the referencing yourself instead of using a professional agency, you need to cover the following:

The referencing will include employment details: confirming position, salary, and contract status and for the self-employed a recent SA302 form or an accountant’s letter.

Tenants relying on benefits to pay their rent should provide an up-to-date Universal Credit statement or other official evidence of income. 

Landlords need to be cautious about fake payslips or references — this is proving to be a growing problem in the rental market. Cross-check phone numbers, websites and email domains; genuine employers rarely use generic emails such as a Gmail address.

Landlord and letting agent references should be part of the process. A genuine previous-landlord reference (get it in writing using your own reference form) can reveal far more than a credit report. You should also confirm by telephone and ask factual questions, not opinions: did the tenant always pay rent on time, keep the property in good condition, or cause any anti-social issues?

Some fraudulent applicants will provide a friend’s number instead of a real landlord, so you need to verify the referee’s identity. Compare the address with previous tenancy agreements or the Land Registry to confirm ownership. Delayed responses or vague statements such as “no issues to report” can be red flags.

Using professional referencing services

Using a reputable tenant referencing agency saves time and adds some rigour to the process, plus it’s independent. They verify identities, run credit checks, contact employers and landlords, and they provide an overall risk rating. Some even offer indemnity cover if a tenant defaults shortly after passing the check.

However, no system is 100 per cent infallible. Fake documents, transient addresses or new credit files can still slip through. Treat referencing as one part of a multi-layered approach, combining third-party reports with your own judgement and verification.

A structured tenant-selection policy

Have a written tenant-selection policy which helps maintain consistency and legal compliance. It should outline the steps you take for each and every applicant — identity verification, credit checks, affordability, references, and final approval criteria. 

This will certainly reduce your risk of losing a discrimination claim under the Equality Act 2010. It also reassures genuine applicants that they’re being treated fairly and professionally. Keep clear records of decisions, including reasons for acceptance or rejection, and store them securely.

The final stages – setting up the tenancy

Transparency is the aim which helps to reassure tenants that the process is open and upfront, so they understand that rigorous checks are standard practice, not personal suspicion.

You need to balance your risk reduction process with fairness. Your tenant vetting must remain lawful and proportionate. Refusing applicants solely because of nationality, race, disability, family status or other protected characteristics breaches the Equality Act.

Similarly, Right to Rent checks must be applied to every adult applicant, regardless of nationality, to avoid accusations of bias. Decisions should always be based on evidence and objective criteria, not opinions and assumptions.

Once the tenant is approved make sure you protect the deposit in a government-approved scheme within 30 days and issue the prescribed information. Don’t take any illegal fees. The Tenant Fees Act 2019 in England banned most letting fees for landlords and agents, and capped tenancy deposits for new or renewed tenancies from June 1, 2019.

Prepare a detailed inventory and condition report with dated photographs or use a professional inventory company to provide the essential evidence in case a dispute arises. 

Ensure the tenancy agreement clearly sets out rent dates, inspection rights, and tenant obligations – the Renters’ Rights Act will need new agreements, though if an existing tenancy has a written tenancy agreement, then landlords won't need to change it or issue a new one. Instead, landlords with existing tenancies will need to provide tenants with a copy of the government published 'Information Sheet' on or before 31 May 2026. 

Ideally, when setting up the tenancy, meet your new tenant at the property where all the necessary paperwork can be given and signed up. Brief the tenant about the property, check off the inventory and explain payment methods, maintenance reporting, locations of important items like fuse and stop taps and any house rules. Many problems stem from lack of communication and misunderstandings. It’s a good idea to use a check-in-check-out checklist.

The cost of getting it wrong

All this may seem like a lot of trouble. But remember, a single bad tenancy can erase years of profit. Lost rent, legal costs, repairs, and void periods can easily exceed £15,000. Under the Renters’ Rights Act, recovering possession will be slower, riskier, and more expensive — make prevention your primary goal, the only effective defence.

Rigorous vetting protects not just landlords, but also good tenants who want a stable, well-managed home. The more professional the selection process, the fewer disputes and evictions the private rented housing system will see.

With the advent of the Renters’ Rights Act 2025, the age of casual letting is over. Today’s landlord must act more like a small business, be professional, compliant, become evidence-based and commercially cautious. In the new era of tenants’ rights, due diligence is no longer an option: it’s a matter of survival.

[Main image credit: Alex Green]