Letting your property to the right tenant starts with good referencing - a structured set of checks that help you understand who you are about to enter a tenancy with. Done well, referencing protects both sides: you gain confidence the rent is affordable and the tenant is who they say they are, and the tenant gets a clear, consistent process. Done badly, it can be unfair, unlawful, or simply miss the things that matter. This guide walks through what referencing covers, how the separate Right to Rent check fits in, what you can and cannot charge, and how to keep the whole process lawful - whether you are letting the property yourself or working with a local agent. Last reviewed: 30 May 2026.
What tenant referencing actually covers
Referencing is not a single test - it is a bundle of checks that together build a picture of a prospective tenant. A typical reference covers:
- Identity - confirming the person is who they say they are.
- Right to rent - confirming they are legally allowed to rent a home in England (see below - this is a distinct legal duty, not just part of a credit report).
- Affordability and income - checking the rent is realistically affordable on their income.
- Employment - confirming their employment status, often with an employer or via payslips.
- A previous-landlord reference - asking a former landlord or agent about rent payment and conduct.
- A credit check - looking for adverse credit such as defaults, County Court Judgments or bankruptcies.
Many landlords and agents use a referencing company to gather these in one report. You can also do parts yourself - for example, asking for payslips and contacting a previous landlord directly. Whichever route you take, be consistent: apply the same checks to every applicant for the same property, so no one can reasonably argue they were treated differently. For a general overview of your responsibilities when letting, see the gov.uk guide to renting out a property.
How Right to Rent fits in
Right to Rent is a separate legal duty, not just a line on a credit report. In England, a landlord must check that a prospective adult tenant has the right to rent before the tenancy begins. This applies to every adult who will live in the property as their only or main home, not only the named tenant. You check by seeing acceptable documents (or using an approved online check for those who have a share code), confirming they are genuine and belong to the person in front of you, and keeping a dated copy.
Because the rules on acceptable documents and how to verify them are detailed and change over time, follow the current official guidance rather than relying on memory. Start with the gov.uk page on how to check a tenant's right to rent documents, and see our companion guide on Right to Rent checks for a step-by-step walkthrough. If you are unsure whether someone's documents or immigration status qualify, check the current gov.uk guidance before granting the tenancy - do not guess.
What you can and cannot charge a tenant
This is where many landlords slip up. In England, the Tenant Fees Act 2019 bans most fees charged to tenants. Crucially, you cannot charge a tenant for referencing. The cost of credit checks, reference reports and admin falls on the landlord or agent, never the tenant. Charging for referencing - whether directly or dressed up as an "application" or "admin" fee - is a prohibited payment.
Only certain "permitted payments" are allowed. In broad terms these are:
- Rent.
- A tenancy deposit, which is capped (see below).
- A holding deposit, which is also capped in law.
- Limited default fees - for example for a lost key or late rent - within the limits the Act allows.
The deposit cap depends on the annual rent: a tenancy deposit is capped at 5 weeks' rent where the annual rent is under £50,000, or 6 weeks' rent where the annual rent is £50,000 or more. The deposit must also be protected in a government-approved scheme - see our guide on deposit protection for how that works. For the exact, current limits on holding deposits and default fees, and the full list of permitted and prohibited payments, check the current gov.uk guidance for landlords on renting out a property, as the figures and rules can change.
A practical point: if you ask for a holding deposit while you reference, be clear in writing what it is, when it counts towards the first rent or deposit, and the circumstances in which it may be kept. Vague terms here cause disputes.
How to reference fairly and lawfully
Referencing must be fair as well as thorough. Two bodies of law shape this.
Do not discriminate
You must not discriminate against applicants on protected grounds under the Equality Act 2010 - for example race, disability, sex, religion or belief. Beyond that, the Renters' Rights Act 2025 strengthens tenant protections: discrimination against prospective tenants who have children or who are on benefits is banned, and a tenant's request to keep a pet cannot be unreasonably refused. In practice this means you should not advertise or screen on a "no children" or "no DSS/benefits" basis, and you should consider pet requests on their merits rather than applying a blanket ban. Because the detailed rules under the Renters' Rights Act 2025 are still bedding in, check the current gov.uk guidance on private renting for how the protections apply to your situation rather than relying on older assumptions.
The safest approach is an objective, written set of criteria - for example a minimum affordability ratio and a satisfactory previous-landlord reference - applied identically to everyone, with your reasons recorded. If you decline an applicant, base it on the criteria, not on personal characteristics.
Handle personal data properly
A credit and reference check processes a lot of personal data - financial history, employment, sometimes sensitive information. You must handle it lawfully under UK GDPR: collect only what you genuinely need, tell applicants what you are collecting and why, keep it secure, and do not hold it longer than necessary. Unsuccessful applicants' data should generally be deleted once it is no longer needed. The Information Commissioner's Office sets out what good data handling looks like - see the ICO for guidance on your obligations as a data controller.
Putting it together
A sound referencing process looks like this: agree your written criteria up front; carry out the Right to Rent check before the tenancy begins; gather identity, affordability, employment, previous-landlord and credit information consistently for every applicant; charge only permitted payments and never bill the tenant for the referencing itself; and store the data securely and lawfully. If you would rather not run this yourself, a local letting agent can manage referencing for you - on Domovita you can list and let the property independently or bring in an agent, whichever suits you. Either way, the legal duties above still apply, so it is worth understanding them even if someone else does the legwork.
Property law in England moves quickly, and several of the rules touched on here - permitted-payment limits, deposit caps and the Renters' Rights Act 2025 protections - can change. Treat the official sources linked above as the live reference, and check the current gov.uk and ICO guidance before you rely on any specific figure or rule.
Frequently asked questions
Can I charge a tenant a referencing or admin fee?
No. In England the Tenant Fees Act 2019 bans charging tenants for referencing. The cost of credit checks, reference reports and related admin falls on the landlord or agent. Only permitted payments are allowed - broadly rent, a capped tenancy deposit, a capped holding deposit, and limited default fees. For the full and current list, check the gov.uk guidance on renting out a property.
Is the Right to Rent check the same as a credit check?
No. Right to Rent is a separate legal duty. In England you must check that every adult who will live in the property as their main home has the right to rent before the tenancy begins, by seeing and verifying acceptable documents or using an approved online check. A credit check looks at financial history and is part of referencing, but it does not satisfy the Right to Rent duty. See gov.uk for how to check right to rent documents.
How much can I take as a deposit?
The tenancy deposit is capped: 5 weeks' rent where the annual rent is under £50,000, or 6 weeks' rent where the annual rent is £50,000 or more. The deposit must also be protected in a government-approved scheme. Holding deposits and default fees have their own limits under the Tenant Fees Act 2019 - check the current gov.uk guidance for those exact figures, as they can change.
Can I refuse tenants with children or on benefits?
No. Under the Renters' Rights Act 2025, discrimination against prospective tenants who have children or who are on benefits is banned, and you must not unreasonably refuse a tenant's request to keep a pet. You also must not discriminate on protected grounds under the Equality Act 2010. Use objective, written criteria applied to everyone, and check the current gov.uk private renting guidance for how these protections apply.
What does a tenant reference usually cover?
A typical reference covers identity, right to rent, affordability and income, employment, a previous-landlord reference, and a credit check. Many landlords use a referencing company to gather these in one report, but you can carry out parts yourself, such as requesting payslips and contacting a previous landlord. The key is to apply the same checks consistently to every applicant for the same property.
Do I have data protection duties when referencing?
Yes. A reference and credit check processes personal data, so you must handle it lawfully under UK GDPR. Collect only what you genuinely need, tell applicants what you are collecting and why, keep it secure, and do not keep it longer than necessary - unsuccessful applicants' data should usually be deleted once it is no longer needed. The ICO publishes guidance on your obligations as a data controller.
General information, not legal advice. This guide explains the rules in plain English and is kept under review, but the law changes and every situation is different. Always check the current position on the official gov.uk pages linked above, and take professional advice - a solicitor, conveyancer, accountant, or your local council as appropriate - before relying on it for a specific decision.