The Renters’ Rights Act has changed the risk profile for landlords in England. With Section 21 “no fault” evictions removed, fixed-term assured shorthold tenancies replaced by periodic tenancies, and landlords now required to rely on specific legal grounds if they need possession, choosing the right tenant at the start has become even more important.
Good tenant verification has always mattered. Under the new rules, it is no longer just good practice — it is a key part of protecting rental income, reducing disputes and avoiding avoidable stress later.
The New Rules Make the First Decision More Important
Before the reforms, many landlords took comfort from the idea that if a tenancy did not work out, there was a relatively straightforward route to regain possession at the end of a fixed term using Section 21. That safety valve has now gone.
Landlords can still recover possession, but they must use the appropriate legal grounds and be able to evidence the reason. That means a poor tenant selection decision can become much more expensive and time-consuming to resolve.
A tenant who fails to pay rent, causes repeated problems, refuses to engage or disputes every step of the process can create months of lost income, legal costs and emotional strain. The new system increases the importance of prevention.
The message for landlords is simple: verify first, let second.
Referencing Should Be More Than a Tick-Box Exercise
A modern tenant check should go beyond asking for a name, employer and previous address. Landlords should aim to build a clear, consistent picture of the applicant before granting a tenancy.
This should include:
- Proof of identity
- Right to Rent checks
- Employment or income verification
- Affordability assessment
- Credit history
- Previous landlord reference where available
- Confirmation of who will actually live at the property
- Any guarantor checks, where appropriate
- Clear records of all documents and decisions
The purpose is not to make life difficult for applicants. It is to make sure the tenancy is affordable, lawful and suitable for both sides from the beginning.
Right to Rent Checks Remain Essential
Landlords in England must continue to check that adults occupying the property have the right to rent. This is a separate legal requirement and should be carried out properly before the tenancy begins.
Landlords should ensure they use the correct process, keep copies or records where required, and apply the same approach consistently to all applicants. Inconsistent checking can create legal and practical problems.
Right to Rent should never be treated as an informal glance at a document. It should be part of a documented pre-tenancy process.
Affordability Checks Are Now Even More Important
One of the biggest practical issues for landlords is affordability. Rent arrears are not just an inconvenience; they can threaten the viability of the property as an investment.
Under the new rules, landlords can no longer simply rely on taking several months’ rent in advance as a way of managing uncertainty. This makes proper income and affordability checks more important.
Landlords should consider whether the rent is genuinely sustainable for the applicant, not just whether they can cover the first month. A tenant who stretches too far to secure a property may quickly fall into arrears if circumstances change.
Where an applicant has irregular income, limited credit history or a weaker financial profile, landlords should proceed carefully and consider whether a suitable guarantor or additional protection is appropriate.
Previous Landlord References Need Care
A previous landlord reference can be useful, but it should not be accepted blindly.
Some landlords may be reluctant to give a full account of a tenant’s history, particularly if they are keen for a problematic tenant to leave. Others may only confirm basic details. A good reference should therefore be considered alongside wider checks, not treated as a guarantee.
Useful questions include:
- Did the tenant pay rent on time?
- Were there any arrears?
- Was the property looked after?
- Were there complaints or neighbour issues?
- Was proper notice given?
- Would the landlord rent to them again?
A vague or evasive reference does not automatically mean the applicant is unsuitable, but it should encourage further caution.
Beware of Informal or Ad-Hoc Lettings
Some of the highest-risk arrangements start casually. A landlord may agree to let to a friend of a friend, a family contact, a colleague’s relative or someone who “just needs somewhere quickly”.
The problem is that the law does not treat these arrangements casually. Once a tenancy is created, the landlord must comply with the same rules, documentation duties and possession process as they would with any other tenant.
Landlords should avoid shortcuts such as:
- Letting someone move in before checks are complete
- Accepting cash without proper paperwork
- Failing to carry out Right to Rent checks
- Not protecting the deposit correctly
- Using a vague or outdated tenancy agreement
- Assuming a personal connection removes the risk
The more informal the arrangement feels, the more important it is to be disciplined.
Keep Records From the Start
Under the new rental regime, records matter. If a landlord later needs to prove rent arrears, anti-social behaviour, breach of tenancy, property damage or compliance with their own obligations, good documentation can make a major difference.
Landlords should keep records of:
- Application forms
- Referencing results
- Identity and Right to Rent checks
- Affordability evidence
- Correspondence with the tenant
- Tenancy agreements
- Deposit documents
- Inventory and check-in reports
- Safety certificates
- Rent payment history
- Repair requests and responses
Good records are not just useful in a dispute. They also encourage a more professional relationship from the outset.
Apply Checks Fairly and Consistently
Landlords must be careful not to discriminate when selecting tenants. Decisions should be based on lawful, objective criteria such as affordability, references, suitability and ability to comply with the tenancy.
A consistent process helps protect landlords as well as applicants. If every applicant is asked for the same core information and assessed using the same basic criteria, the landlord is in a stronger position to explain their decision if challenged.
The aim should be professional verification, not personal judgement.
Tenant Verification and Rent Protection Work Together
Even the best referencing cannot remove all risk. A tenant may pass checks and later lose their job, separate from a partner, suffer illness or simply stop paying. Landlords should therefore see verification as the first layer of protection, not the only one.
That is why many landlords are now looking more closely at rent and legal protection.
NetRent’s online Rent and Legal Protection is designed to help landlords protect themselves against the financial impact of unpaid rent and the legal costs that can arise when a tenancy goes wrong.
You can find out more here:
https://netrentinsuranceservices.co.uk/rent-legal-protection/
The Bottom Line for Landlords
The Renters’ Rights Act does not mean landlords cannot protect their property or income. It does mean they need to be more careful, more organised and more professional before handing over the keys.
Tenant verification should now be treated as a core risk-management process. Landlords should know who they are renting to, check affordability properly, complete Right to Rent checks, keep clear records and avoid casual arrangements that bypass normal safeguards.
In the new rental environment, the safest tenancy is the one that has been properly checked before it begins.
For help with landlord insurance, mortgages and rent protection, contact NetRent:
Telephone: 01352 721300
Email: support@netrent.co.uk
Disclaimer: NetRent does not provide legal advice. This article reflects our understanding of rental property law and current landlord obligations. Landlords should seek independent legal advice where required.