At Hello Neighbour we see referencing as an essential part of letting a property and it is a good example of our purpose to change lettings for good because it helps landlords stay compliant and in control while keeping the whole process simple fair and transparent from the very beginning.
That purpose is also why we have built referencing directly into our platform, so the information needed for each check is gathered in real time as the tenant moves through the viewing and offer process. It creates a smooth flow of information, reduces delays and allows us to offer a comprehensive reference for £24 per tenant.
By using modern technology including AI we make sure our references do not compromise thoroughness for speed. They cover employee and landlord checks, Right to Rent share code checks, affordability assessments, credit checks and verification of supporting documents. With the sharp rise in fraudulent applications, we have designed every part of this process to reduce risk while keeping the experience smooth for both landlords and tenants.
Our approach uses Open Banking for affordability and detailed document analysis for fraud prevention. We have built this into our platform, so the checks start early and run consistently throughout an application. We do not think you will find a more thorough reference and this is one of the clearest ways we can raise standards across the market.
Why referencing is important
Finding tenants quickly is always a priority but finding the right tenants matters even more. This will only become more important as the Renters Rights Act is implemented and as a landlord’s ability to remove a tenant quickly becomes increasingly limited.
Industry data shows a 140% increase in fraudulent referencing applications between 2022 and 2023 which means a strong process must use the full benefits of Open Banking, AI driven fraud detection and digital connectivity.
Referencing reduces the risk of late or missed payments, property damage and costly legal disputes further down the line. It also helps you meet legal obligations including Right to Rent share code checks where they apply. In short, high-quality referencing protects your property your income and your peace of mind and we think it is essential part of changing lettings for good.
What’s included in referencing
Most reference providers offer identity, Right to Rent, credit checks, affordability and income checks, address verification and rental history. Not all include Open Banking which we have found to be essential for understanding affordability properly.
The depth of fraud prevention can also vary. We have placed a high priority on fraud checking given the increasing risks landlords are now exposed to.
Speed varies too. We have prioritised speed because making letting fast and predictable is part of our approach. We achieve this without compromising rigour by linking our reference process to the platform, so information is collected in real time.
It is important that landlords check what their rent guarantee insurance requires and make sure any reference used meets those conditions. We have ensured that our references do that for the best insurance products.
At Hello Neighbour our referencing process is based on many years of experience and hundreds of thousands of tenant applications. We have looked across the market and built the most thorough process we can whilst using our scale and technology to keep costs low.
Our checks combine detailed financial assessments background verification and legal compliance. We confirm identity using a certified ID service provider and carry out Right to Rent checks using the Home Office online system. We assess affordability through payslips employment contracts and bank statements linked through Open Banking.
We speak to previous landlords or agents whose feedback helps build a fuller picture of how a tenant has treated properties and whether rent was paid on time. This additional insight often highlights issues before they become a problem.
How the process works
When we reference a tenant, we:
· Verify identity using official documents
· Carry out Right to Rent share code checks in England where required
· Run a credit check including adverse history such as County Court Judgments
· Confirm employment and income to ensure affordability
· Collect references from previous landlords or agents
· Complete KYC and AML checks
Our credit checks are powered by Experian and verify address history, credit performance and financial stability using Open Banking.
Our KYC and AML checks include Politically Exposed Person, sanctions and criminal watchlist screening.
Fraud Prevention - detailed document analysis
An effective reference must ensure that all documents are genuine. This is one of the most important areas of fraud prevention. We use sophisticated technology to analyse each document including checking editing history, fonts, metadata and production software as well as reviewing a document’s construction. These signals are compared with what should be expected and this approach has helped us detect issues long before they reach a landlord.
Right to Rent explained
In England all adult tenants must pass a Right to Rent check before moving in. This does not apply in Scotland Wales or Northern Ireland or in certain types of accommodation such as student halls or holiday lets.
If a tenant’s Right to Rent is time restricted a follow up check must be completed before that period ends. Our management platform keeps track of these dates, so nothing is overlooked.
What if a tenant fails referencing?
If an applicant does not meet the criteria, we let you know immediately and explain why. In some cases, you may still decide to proceed with safeguards such as a guarantor, and we will support you through that process if needed.
Why use Hello Neighbour?
Handling referencing yourself can be time consuming and risky. With Hello Neighbour you get a process that is thorough, affordable and compliant. We use trusted verification systems, store records securely and make sure every legal requirement is covered.
Referencing costs £24 per tenant as an add on or is included within our Get Rented Pro package.
Key takeaways for landlords
Tenant referencing is much more than a box ticking exercise. It is the first and most important safeguard for your property and rental income. By choosing Hello Neighbour every tenant is checked carefully, fairly and consistently which means fewer risks smoother tenancies and a better experience for both landlords and tenants. This is one of the clearest ways we can change lettings for good.