Tenant Referencing Without a Letting Agent: A Step-by-Step Guide

How do you reference a tenant without a letting agent?

Run the same checks on every applicant: identity and right to rent, a credit check, employment and income, and a previous-landlord reference. Then apply one written affordability test to all of them. Referencing itself is not regulated, but what you charge, what rent you ask for up front, and how you treat families and people on benefits all are.

Where referencing fits in the letting process

1. Viewing and application. The applicant views the property and applies.
2. Holding deposit (optional). You can take a holding deposit of up to one week's rent while you reference. Under the Tenant Fees Act 2019, the default deadline to sign the agreement is 15 days after you receive it. You must repay it within 7 days of signing, of deciding not to let, or of that deadline passing.
3. Referencing. Run the checks below.
4. Decision and signing. Only after the tenancy agreement is entered into can you ask for rent in advance, and then no more than one month's (see below).

Don't let anyone move in while references are outstanding. Once a tenancy starts, you can only end it on a Section 8 ground.

The checks, step by step

1. Tell the applicant what you will check. Referencing uses personal data. Under UK GDPR you must tell people what you collect, why, who you share it with and how long you keep it (the ICO calls this the right to be informed). A referencing service will normally handle the applicant's authorisation for the credit search.
2. Confirm identity and right to rent. Check that the person applying is the person in the documents, and carry out a right to rent check on every adult who will live there. This is a legal duty, with civil penalties of up to £10,000 per occupier for a first breach.
3. Run a credit check. A tenant referencing service or credit reference agency report will show county court judgments, insolvency and the applicant's credit history. A single old judgment is not the same as a pattern of recent defaults, so read the detail rather than just the score.
4. Verify employment and income. Ask the employer to confirm job title, start date, salary and whether the role is permanent, fixed-term or zero-hours. Get the employer's contact details yourself, not only from the applicant. For self-employed applicants, ask for recent tax calculations from HMRC or an accountant's reference. Count all income, including benefits (see below).
5. Get a previous-landlord reference. Ask whether rent was paid on time and in full, what condition the property was left in, whether proper notice was given, and whether they would let to the applicant again. Where you can, contact the landlord before the current one as well. A current landlord may simply want the tenant gone.
6. Apply your affordability test. Use the same written test for every applicant (see below), and record the result and your decision.

Affordability, guarantors and benefits

Most referencing services test affordability by comparing income with a multiple of the rent. That multiple is a commercial choice, not a legal requirement, and providers set their own. The law has two things to say about it.

Income can be taken into account. Section 41 of the Renters' Rights Act 2025 says nothing in the Act's discrimination provisions stops you considering whether someone can afford the rent.

But benefit income must count equally. From 1 May 2026, sections 33 and 34 ban doing anything that makes someone less likely to get a tenancy because they have children or receive benefits. The government's guidance says an affordability test must account for all income, including state benefits and pensions, and treat it as having equal value. It also covers referencing services that discount benefit income. If your referencing service does that, you are responsible. The landlord guide puts the penalty at up to £7,000 per breach. For the full rules, see our guide to the no DSS, no children ban.

Guarantors. You can ask for a guarantor. The guidance says requiring one from all applicants is acceptable, but requiring one in practice only from people on benefits is discrimination. Write down what triggers a guarantor request (for example, "income below our affordability test") and apply it to everyone. Reference the guarantor the same way.

What you can and can't do

More detail on the up-front rent rules is in our guide to rent in advance under the Renters' Rights Act.

Red flags to look into

• Unexplained gaps in address history. There may be a good reason, but ask.
• Reluctance to give a previous-landlord contact when the applicant says they have rented before.
• Income that doesn't match the job. Ask for payslips or bank statements.
• A "previous landlord" who may be a friend. Find the landlord's contact details yourself where you can, for example from the Land Registry title of the previous address, rather than relying only on the number you were given.

Handling applicants' data

• Collect only what you need for the decision.
• Store it securely. See our guide to storing tenancy documents securely.
• Don't keep unsuccessful applicants' data longer than you need it. UK GDPR requires personal data to be kept no longer than necessary. Right to rent records for tenants you do let to have their own retention period: the tenancy plus one year.

Frequently asked questions

Do I have to use a referencing company?

No. You can run each check yourself. A referencing service is simply a convenient way to get a credit report and collect employer and landlord references in one place. Whoever does the checks, you pay: you can't pass the cost to the applicant.

Can the tenant pay for their own reference if they offer?

You must not require a relevant person to pay for referencing or to take out a contract with a referencing company as a condition of the tenancy. The safe course is to pay for referencing yourself.

What income multiple should I use?

There is no legal figure. Choose a test you can justify, write it down, and apply it to every applicant, counting benefit income the same as earned income.

Is a right to rent check part of referencing?

It is done at the same time, but it is a separate legal duty with its own rules and penalties. See our right to rent checks guide.

Further reading

• Setting up a tenancy: the landlord's compliance checklist
• Managing a rental property without a letting agent
• Tenant deposit protection rules for landlords