How to reference a tenant in the UK

What tenant referencing actually is

“Referencing” is an umbrella term for the background checks a landlord runs before granting a tenancy. There is no single legal definition — it is whatever evidence gives you reasonable confidence the tenant will pay the rent and look after the property. In practice a thorough reference combines five things: a credit check, an affordability assessment, employment confirmation, a previous-landlord reference, and a Right to Rent check. The last one is a separate legal duty in England, not optional.

The five checks that make up a tenant reference

1. Credit check— confirms identity and surfaces County Court Judgments (CCJs), bankruptcies, IVAs and defaults on the tenant's public credit file.
2. Affordability— checks the tenant earns enough to cover the rent comfortably, usually against an income-to-rent multiple.
3. Employment / income reference— confirms the tenant's job, salary and contract type with their employer (or accounts, if self-employed).
4. Previous-landlord reference— asks the current or former landlord whether rent was paid on time and the property kept in good order.
5. Right to Rent— a legal check, required in England, that the tenant is allowed to rent property in the UK.

Credit checks: what they show (and the soft-search myth)

A tenant credit check confirms the applicant's identity against the electoral roll and reports any adverse history: CCJs, defaults, bankruptcies and Individual Voluntary Arrangements. It does notshow a full bank statement or exact income — that comes from the affordability and employment checks.

A common worry from tenants is that being referenced will harm their credit score. It will not. Tenant referencing uses a soft “quotation” search, which is visible only to the tenant on their own report and leaves no footprint that other lenders can see — no matter how many times they are referenced. Reassuring applicants of this upfront speeds up the process.

Affordability — the income-to-rent rule

The most widely used benchmark is that the tenant's gross annual income should be at least 30 times the monthly rent— roughly 2.5 times the annual rent. On a £1,200-a-month let, that means an income of about £36,000. Where a tenant falls short, the usual answer is a guarantor (see below) or several months' rent in advance.

For self-employed tenants, affordability is usually evidenced with the latest SA302 tax calculation, accountant's confirmation, or two to three months of business bank statements rather than payslips.

Right to Rent — a legal duty in England

Under the Immigration Act 2014, landlords in England must check that every adult occupier has the right to rent in the UK before the tenancy starts. The duty applies in England only— not Scotland, Wales or Northern Ireland. You can carry out the check in one of three ways:

• Manual checkof the tenant's original documents (e.g. a passport), in their presence, keeping a dated copy.
• Online check via a share code on GOV.UK, for tenants who prove their status digitally (eVisa / biometric residence permit holders).
• Identity Document Validation Technology (IDVT) through a certified provider, for British and Irish citizens with valid passports.

Getting it wrong is expensive. Civil penalties rose sharply in early 2024 — up to £5,000 per lodger and £10,000 per occupier for a first breach, rising to £10,000 per lodger and £20,000 per occupier for repeat breaches. A correct, documented check gives you a statutory excuse against a penalty.

Guarantors

A guarantor is someone — often a parent — who agrees to cover the rent if the tenant cannot. Guarantors are standard for students, tenants new to the UK, and anyone who falls short on affordability. A guarantor should be referenced too, usually against a higher multiple (commonly 36 times the monthly rent), and the guarantee should be in a properly drafted, signed deed.

The referencing process, step by step

1. Agree the let in principle and take a holding deposit (see the cap below).
2. Collect the applicant's details and consent to be referenced.
3. Run the credit check and affordability assessment.
4. Request employer and previous-landlord references.
5. Complete the Right to Rent check before move-in.
6. Review the full report, then either proceed, ask for a guarantor, or decline.

DIY vs paid referencing — and what it costs

You can gather references yourself by phoning employers and landlords, but a paid online reference is faster, more consistent, and gives you a documented, fraud-checked report to rely on. A credit-only check typically costs under £10; a full reference (credit, income, affordability, Right to Rent and anti-fraud) is usually around £14–£20 per tenant. RentFig's free tenant referencing tool lets you collect the application for free and pay only if you run a check.

Crucially, since the Tenant Fees Act 2019you cannot pass referencing costs on to the tenant in England — charging a tenant for a reference is a banned fee. The cost sits with the landlord or agent, which is exactly why a low per-check price matters.

Holding deposits and the Tenant Fees Act

The Tenant Fees Act 2019 also caps the money you can take. A holding deposit is limited to one week's rent, and the security deposit to five weeks' rent where the annual rent is under £50,000 (six weeks if it is £50,000 or more). The holding deposit must be returned or put towards the rent unless the tenant withdraws, fails a Right to Rent check, or provides false information.

What the Renters' Rights Act changes

Referencing is becoming more important, not less. Under the Renters' Rights Act, rental bidding is banned (you must advertise a fixed asking rent and cannot accept more than it), and you cannot discriminate against tenants in receipt of benefits or with children. With section 21 “no-fault” evictions abolished, getting the tenant selection right at the start — on a fair, consistent, documented basis — is your strongest protection against problems later.

FAQ

Does referencing a tenant affect their credit score?

No. Tenant referencing uses a soft search that is only visible to the tenant on their own report. It is not seen by lenders and does not affect their credit score, however many times they are referenced.

Can I charge the tenant for referencing?

No. In England, charging a tenant for referencing is a banned fee under the Tenant Fees Act 2019. The landlord or agent must cover the cost of the check.

What income should a tenant have?

The common benchmark is a gross annual income of at least 30 times the monthly rent (about 2.5 times the annual rent). Below that, a guarantor or rent in advance is the usual route.

How long does tenant referencing take?

A credit check is often instant. A full reference depends on how quickly the employer and previous landlord respond — typically one to three working days. Asking the tenant to give their referees a heads-up speeds things up considerably.

Is Right to Rent the same across the UK?

No. The Right to Rent scheme is a legal requirement in England only. It does not apply in Scotland, Wales or Northern Ireland, though landlords there still reference tenants for affordability and credit.

Disclaimer: This guide is general information for UK landlords, not legal advice. Immigration rules, fee caps and penalty levels change; always check the current GOV.UK guidance and, where the stakes are high, take professional advice before acting.