Tenant referencing is a key part of the rental process. It allows landlords and letting agents to assess whether a prospective tenant is likely to meet their obligations under a tenancy agreement, especially the ability to pay rent on time. Standard tenant referencing checks will include employment verification, credit checks and references. In some cases having undertaken these checks, a  landlord may still have concerns about the tenant's financial stability or ability to maintain the rent payable under the proposed tenancy. 

When a Guarantor is needed

In situations where referencing results raise concerns, landlords have the option of requesting that a tenant provide a guarantor. A guarantor will agree to take on the financial responsibility of the tenancy if the tenant fails to pay the rent, or breaches the tenancy agreement. 

To formalist this request, a landlord can request Letter Requesting Personal Reference for a Guarantor and Letter Requesting a Reference from the Guarantor’s Bank as part of further checks. 

The role of a Personal Reference

A Residential Tenant Reference Letter from Personal Referee, unlike a financial reference or employer reference provides insight into the tenant's character, reliability, and general conduct. A referee might be a long standing friend, colleague, or community member who knows the tenant well.

Personal references can be valuable in cases where a tenant has a limited rental history, is moving to the UK from abroad, or renting for the fist time.   By gathering this information, landlords and letting agents gain a more well-rounded picture of the prospective tenant's suitability.