Tenant Referencing for Landlords: A UK Guide

Tenant referencing is the set of checks a landlord runs before agreeing a tenancy. It confirms an applicant is who they say they are, has the right to rent in England, can afford the rent and has a reliable rental history. A typical reference covers identity and Right to Rent, a credit check, income and affordability, and a previous landlord reference. You cannot require the applicant to pay for it: since 2019, landlords and agents in England and Wales have not been allowed to charge tenants for referencing or credit checks.

A tenant who doesn’t pay, or who damages the property, can cost you thousands of pounds and months of stress. Referencing won’t remove that risk, but it is the simplest way to reduce it.

Landlords tend to make two mistakes:

• They accept the first applicant who comes along to avoid a void period.
• They don’t reference their applicants properly.

This guide covers what you can and can’t take into account, then seven steps to referencing an applicant well.

This guide is general information for landlords in England, with notes on Wales. It is not legal advice.

Who you can and can’t turn down

You can turn down an applicant for a sound reason that you apply consistently, such as failing your affordability requirement, a poor credit history or a poor previous landlord reference. You cannot turn someone down for a reason the law protects.

Under the Equality Act 2010, you cannot discriminate when letting a property because of an applicant’s disability, gender reassignment, pregnancy or maternity, race, religion or belief, sex or sexual orientation. Age and marriage or civil partnership are not protected by the Act’s premises provisions, which cover letting.

Since 1 May 2026, the Renters’ Rights Act also stops you discriminating against applicants because they receive benefits or have children. Blanket “no DSS” or “no children” policies are no longer allowed, subject to limited statutory exceptions. For example, restricting children can be lawful where it is a proportionate way to avoid overcrowding, and some insurance terms agreed before 1 May 2026 still apply until the policy renews or ends. The government’s rental discrimination guidance explains the exceptions.

Pets need care too. Once a tenancy starts, a tenant can ask in writing to keep a pet. You must normally respond in writing within 28 days, and you cannot refuse without a fair reason. General concern about possible future damage will usually be an unreasonable reason to refuse (gov.uk).

What you need to know is whether the applicant can afford the rent and is likely to pay it on time and look after the property. That means you can:

• run a credit check
• confirm their income
• ask their previous landlord how the tenancy went

For example, you might turn down an applicant who looks great on paper if their previous landlord confirms they paid late and damaged the property. Set your criteria before you advertise, apply them to every applicant, and record why you made each decision.

7 steps to effective tenant referencing

1. Set clear standards

Before you advertise and start collecting tenant applications, decide what an applicant needs to show. For example:

• Income and affordability: apply the same affordability requirement to every applicant and count all forms of income equally, including earnings, pensions and state benefits. A common rule of thumb is annual income of around 30 times the monthly rent, but other debts, regular commitments and living costs also affect affordability.
• Income evidence: accept reasonable ways of showing income, such as payslips, bank statements, benefit statements, pension evidence, accounts or tax returns (useful for self-employed applicants). Look at how stable the applicant’s total income is, not whether they are employed.
• References from past landlords: did they pay on time and leave the property in good condition?
• Smoking: set out your smoking policy in your listing so applicants know where they stand.

Clear standards help you choose between applicants when you get more than one, and make it easier to explain your decision. Our free tenant referencing checklist keeps every check in one place.

The key question is whether they can afford the rent and are likely to pay it on time and in full.

2. Meet them

Meet your applicants, at a viewing or by video call. Use the meeting to answer their questions, confirm the details they’ve given you and explain how your referencing works.

Don’t make a decision on gut feel. Base it on the criteria you set in step 1 and the evidence you collect, and apply the same approach to everyone.

3. Check their ID and Right to Rent

Before you agree a tenancy, make sure applicants are who they say they are and that they have the right to rent in England.

Under the Immigration Act 2014, landlords in England must check that every adult who will occupy the property as their only or main home has the right to rent, even if they are not named on the tenancy agreement. There are three ways to check:

• Manual document check: check the original documents from the government’s acceptable documents list. You can do this in person or by live video call, but for a video check you must still have the original documents in your physical possession. Seeing them only over video is not enough (landlord’s guide to right to rent checks).
• Home Office online check: the applicant gives you a share code. This is the only route for someone who holds an eVisa.
• Registered digital verification provider: a provider on the government register checks eligible documents digitally.

Do the check, and keep a record of it, before the tenancy agreement is entered into. If someone has a time-limited right to rent, carry out and record the check no earlier than 28 calendar days before the tenancy’s start date, and diarise a follow-up check. Limited exceptions apply, for example where an applicant is overseas.

The penalties are steep. Under the code of practice in force from 1 October 2026, the civil penalty is £10,000 per occupier or £5,000 per lodger for a first breach, rising to £20,000 and £10,000 for a repeat breach within three years. Paying an eligible first-breach penalty within 21 days can reduce it by 30%.

4. Use a tenancy application form

Ask interested applicants to fill out a tenancy application form. Bring printouts to the viewing, email it the same day, or use Landlord Studio’s online tenant applications.

Your tenancy application form should include:

• Tenancy details: property address, rental period, number of applicants, proposed start date
• Applicant’s personal details: name, contact details and time at their current address
• Current landlord: contact details for their current landlord
• Referee and guarantor details: details of any guarantor
• Income details: sources of income, such as employment, self-employment, pensions or benefits, and how they will evidence them
• Occupiers: details of everyone who will live in the property
• Other details: such as smoking status, and whether they have or plan to ask about a pet

Hopefully you will receive more than one application and can compare them side by side against your criteria.

Handling applicants’ data: referencing means collecting personal and financial information, so UK GDPR applies. Tell applicants what information you will check, why you need it, who it will be shared with and how long you will keep it. You need an appropriate lawful basis under UK GDPR, which is not necessarily consent (ICO). You should also get any authorisation your credit-check provider requires. Keep documents secure, and don’t use the information for anything else.

5. Use a tenant referencing service and credit check

It’s worth having the key details checked by a professional tenant referencing service. A good referencing report should cover:

• identity, address history and fraud checks
• a credit check, including County Court Judgments (CCJs) and insolvencies
• income confirmation, with an affordability result
• a previous landlord reference

Some providers also offer Right to Rent checks. A referencing report only counts as your legal Right to Rent check if the provider is a registered digital verification provider and the prescribed process is followed. Otherwise, do the check yourself as set out in step 3.

Turnaround times vary, and delays often arise while employers or previous landlords respond. Some rent guarantee insurers require a specific provider, so check your policy before you choose one. For more on what a credit check shows, read how and why UK landlords run a tenant credit check.

Treat a third-party referencing report as one input into your decision, not the whole decision.

Landlord Studio’s online tenant applications help you collect and compare applications in one place before you pay for referencing.

6. Corroborate their story

Most applicants are honest, but it’s worth confirming the details your decision relies on. Contact the employer and the previous landlord yourself, using contact details you have found independently as well as the ones on the form, and check that what they tell you matches the application.

If you find gaps in their story, talk to the applicant about it. They might have a perfectly reasonable explanation. Our landlord reference letter template shows what a useful reference from a previous landlord looks like.

7. Ask for a tenant guarantor

A guarantor is a popular option for landlords, especially when renting to students or people with short rental histories. A guarantor agrees to meet the obligations set out in the guarantee, most commonly unpaid rent, if the tenant does not.

If you accept a guarantor, reference them too. Run the same identity, credit and affordability checks, because a guarantor who can’t pay offers no protection.

Free guarantor form template

When referencing is harder

Some good applicants are hard to reference: people new to the UK with no UK credit history, first-time renters with no previous landlord, or tenants whose last tenancy was informal. Rather than rejecting them outright, ask for alternative evidence, such as an employer reference, bank statements or a UK guarantor. Apply the same approach to everyone in that situation.

Other points to consider

1. You can’t charge the applicant for referencing

In England, the Tenant Fees Act 2019 bans landlords and agents from charging tenants for referencing or credit checks. Wales has the same ban under the Renting Homes (Fees etc.) (Wales) Act 2019. If you use a paid service, it makes sense to reference only the applicants most likely to succeed.

You can take a holding deposit of up to one week’s rent while you reference someone. You must not take another holding deposit for the same property while the first is active (Tenant Fees Act statutory guidance). If the applicant gave you accurate information and you decide not to go ahead, for example because they don’t meet your affordability requirement, you must return the holding deposit. You can only keep it in specific cases, such as where the applicant gave false or misleading information that was relevant to your decision, failed a Right to Rent check or withdrew. Our holding deposit FAQs cover the details.

2. Don’t treat a verbal yes as final

Until a holding deposit is paid or the tenancy agreement is signed, a verbal commitment can change. Your applicant might decide not to move, or take a different property, leaving you back at square one. Once you accept a holding deposit, though, stop advertising the property, because you can’t take another holding deposit for it while that one is active.

For an assured periodic tenancy in England, you must not ask for, encourage or accept rent before both parties have signed the tenancy agreement. Between signing and the start of the tenancy, you can normally ask for up to one month’s rent where rent is paid monthly, or up to 28 days’ rent where it is paid more often. A holding deposit or tenancy deposit can be requested before signing, within the deposit caps (gov.uk). See also rent in advance rules under the Renters’ Rights Act.

3. Rent guarantee insurance

Rent guarantee insurance (RGI) can cover you against lost rent if a tenant stops paying, which helps you manage the risk of rent arrears. Cover, exclusions, excesses and waiting periods vary between policies, so read the terms carefully.

If you plan to take out rent guarantee insurance, check the insurer’s requirements before you reference anyone. Many will only cover a tenancy if you ran specific checks or used a particular referencing service.

You can stay on top of new laws, regulations and good practice, and get advice from other landlords, by joining a landlord association.

Frequently asked questions

Who pays for tenant referencing?

Not the applicant. In England and Wales, landlords and letting agents cannot charge tenants for referencing or credit checks. If you use a referencing service, you pay the fee yourself.

How long does tenant referencing take?

Turnaround times vary between providers. Delays usually come from waiting for an employer or previous landlord to reply, so ask applicants to give their referees a heads-up.

Can I refuse a tenant because they receive benefits?

No. Since 1 May 2026, landlords in England cannot discriminate against applicants because they receive benefits or have children. You can still apply an affordability requirement, as long as you apply it to everyone and count benefit income in the same way as any other income.

What happens to the holding deposit if an applicant fails referencing?

If they gave you accurate information and you decide not to go ahead, you must return it. You can only keep it in specific cases, such as where they gave relevant false or misleading information, failed a Right to Rent check or withdrew from the tenancy.

This article is general guidance for landlords in England, not legal advice.