Tenant vetting
Tenant vetting is the process of checking whether a prospective residential tenant is suitable and affordable before granting a private tenancy. It usually combines reference checks, credit and affordability assessments, often considering the rent to income ratio, right to rent checks, and sometimes guarantors.
Under the Renters’ Rights Act, vetting still matters, but how you do it is more tightly regulated. You must not charge separate fees for vetting, it is not a permitted payment. Any standalone “admin” or “referencing” fees are likely to be prohibited payments, risking enforcement and problems later if you rely on possession grounds.
Good tenant vetting typically includes:
Confirming identity and immigration status.
Verifying income, employment and benefit position, including Local Housing Allowance (LHA) where relevant.
Previous landlord or agent references, including any history of serious anti-social behaviour or rent arrears.
Considering overall risk in the context of the property, for example an HMO licence or all inclusive rent set-up.
Decisions must be fair, consistent and non-discriminatory, and you should handle personal data lawfully. If a rejected applicant complains through the Private Rented Sector Ombudsman or via redress, clear written criteria and records of your vetting decisions will help show that you acted reasonably within the modern PRS framework.
Also see our landlord blog article, including:
