What Happens If a Tenant Fails Referencing? What Landlords Should Consider
Tenant referencing helps landlords understand whether an applicant can afford the rent and meet the responsibilities of a tenancy. But what happens when a tenant fails referencing?
A failed result does not always mean the applicant has been dishonest or would make a poor tenant. It could be caused by affordability, limited credit history or information that could not be verified. Before deciding, look at why the reference failed and what the report is actually saying.
What does it mean when a tenant fails referencing?
Referencing normally considers identity, employment, income, affordability, credit history and previous tenancies. Andrews’ tenant qualifying process also includes Right to Rent checks and confirmation of the proposed tenancy details.
The overall result matters, but landlords should also read the detail behind it. Different concerns call for different responses.
Why might a tenant fail reference checks?
They do not meet the affordability criteria
A tenant may fail an affordability check if their verified income does not meet the referencing requirements for the monthly rent.
This can also happen when someone has irregular income, recently changed jobs or is self-employed and cannot provide the usual evidence. It does not always mean they cannot afford the property, but more information may be needed.
Their credit history raises concerns
County Court judgments, insolvency, unpaid debts or other adverse credit information may affect the result. These are among the details considered during the Andrews tenant qualifying process.
The age, value and circumstances of the issue can be relevant. A small historic problem is different from a recent pattern of missed payments. Give the applicant an opportunity to explain and provide evidence.
Information cannot be verified
A failed tenant reference can also result from missing or inconsistent information. An employer may not respond, a previous landlord may be difficult to contact or documents may not match the application.
Allow the applicant a reasonable opportunity to provide what is missing. Take the matter more seriously where information appears to have been deliberately changed or withheld.
Does failed referencing mean automatic rejection?
Not always. The decision depends on why the reference failed and the level of risk involved.
A tenant who narrowly misses an affordability threshold presents a different situation from someone who has supplied false information. Further evidence may resolve the concern, or the application may need to be declined.
Check the requirements of your mortgage, landlord insurance and any Rent and Legal Protection product before proceeding. Make sure accepting the application will not affect the cover available.
What further evidence can a landlord request?
The documents needed will depend on the issue. These may include:
- Recent payslips or an employment contract
- Tax documents for a self-employed applicant
- Bank statements or evidence of savings
- Proof that a debt has been settled
- A corrected address or employment history
- An alternative previous-landlord reference
Only request information that helps clarify the application. Keep a record of what was considered and how the final decision was reached.
Can a guarantor help if a tenant fails referencing?
A suitable guarantor may help when affordability, limited income or a lack of rental history is the main concern.
The guarantor should complete their own checks and understand what they are agreeing to. Depending on the agreement, they could become responsible for unpaid rent or other tenancy costs if the tenant does not pay. Andrews also recommends verifying and referencing a guarantor where one is appropriate.
A guarantor will not resolve every issue, particularly where false information has been provided.
Can you ask for more rent in advance instead?
Rent in advance should not be used as a simple workaround.
Since 1 May 2026, landlords in England cannot ask for, encourage or accept rent before the tenancy agreement has been signed. Once it has been signed, they can usually request no more than one month’s rent in advance before the tenancy begins.
This makes careful referencing and, where suitable, a properly assessed guarantor even more important.
What happens to the holding deposit?
Failing affordability or credit checks does not automatically allow a landlord or agent to keep the holding deposit.
It will normally need to be returned unless a permitted exception applies. This can include the applicant withdrawing, failing a Right to Rent check, not taking reasonable steps to progress the tenancy, or providing false or misleading information that affects their suitability.
Keep evidence of the decision and explain it clearly to the applicant.
Make a fair and informed decision
When a tenant fails referencing, start with the reason rather than the label. Review the report, ask sensible follow-up questions and consider whether further evidence or a guarantor addresses the concern.
Andrews carries out detailed checks before a tenancy is agreed and discusses the findings with landlords. Speak to your local Andrews team for support finding and qualifying the right tenant for your property.
