Referencing your tenants is a wise idea. By performing the right checks, you have a much better chance of weeding out tenants who might cause problems. A thorough referencing check could include asking for the following documents and making copies of them:
Photo ID, to verify a person’s identity.
Proof of current address, such as utility bills.
Proof of income, to ensure the tenant can afford rent.
Employer’s reference, to check the tenant is in employment.
Previous landlord’s reference, to make sure the tenant has not caused problems in the past.
It’s also a good idea to run a credit check. This will back up the identity checks you have made and flag up any history of the tenant not paying bills.
If you have rent guarantee insurance, it is a requirement that all tenants pass reference checks. In the event of making a claim, your insurer is likely to decline to pay out if they find that you have not completed adequate tenant referencing.