How much does tenant referencing cost?

Tenant referencing usually costs £15–£50 per applicant. As an example, Goodlord referencing through the NRLA costs £23.40 for members and £40.20 for non-members. The landlord pays: tenants in England, Wales and Scotland can’t be charged for referencing or credit checks.

Typical tenant referencing prices

These are typical ranges from referencing providers and landlord guides, not quotes. Remember to budget for every adult who will be on the tenancy, plus any guarantors. A couple with one guarantor means three references.

What checks are included

Most full references cover:

• Identity and address history, checked against credit reference data.
• Credit check for county court judgments (CCJs), bankruptcies and insolvency arrangements.
• Affordability. Many providers compare income against the rent using a rule of thumb, such as annual income of around 30 times the monthly rent. This is industry practice, not a legal rule.
• Employer, accountant or pension reference to confirm income.
• Previous landlord reference covering rent payment and the condition of the property.
• Guarantor checks where the applicant doesn’t meet the affordability level.

Some providers add open banking income checks, faster turnaround or Right to Rent checks for an extra fee. Rent guarantee insurance usually requires the tenant to pass a full reference from an approved provider, so check what your insurer needs before you choose. See our rent guarantee insurance cost guide.

Who pays: the fees ban

In England, the Tenant Fees Act 2019 means landlords and agents can’t charge tenants for referencing, credit checks, guarantor checks or administration. The Act bans every payment from a tenant except those it specifically permits (see the government’s Tenant Fees Act statutory guidance), and referencing isn’t one of them. You can still use a credit reference agency and ask the tenant for the details it needs, but you pay the fee yourself. Breaking the ban can lead to a penalty of up to £5,000 for a first breach.

Wales has a similar ban under the Renting Homes (Fees etc.) (Wales) Act 2019. In Scotland, mygov.scot’s guide to setting up a tenancy explains that charging a tenant for a credit check or any other fee for starting a tenancy is unlawful, and the tenant can claim it back.

You can still take a holding deposit of up to one week’s rent in England while referencing takes place.

Referencing after the Renters’ Rights Act

Since 1 May 2026 in England, the Renters’ Rights Act has changed how you can choose a tenant:

• Rent in advance is capped at one month, so you can no longer ask for several months upfront from an applicant with a weak reference.
• Blanket bans on families with children or people receiving benefits are not allowed. You can still assess affordability, but on the individual’s circumstances.
• Rental bidding is banned. You must advertise an asking rent and can’t accept offers above it.

A good reference, a guarantor or rent guarantee insurance matters more now that you can’t use large upfront payments to cover risk. Read our Renters’ Rights Act guide for the wider changes.

Right to Rent is separate (England only)

A tenant reference is not a Right to Rent check. In England, you must check that every adult who will live in the property has the right to rent before the tenancy starts. A new Right to Rent code of practice for landlords took effect on 1 October 2026. It allows a manual document check, the Home Office online check with a share code, or a check through a certified Digital Verification Service Provider. People with an eVisa can only prove their right to rent online.

Penalties are up to £10,000 per occupier for a first breach and up to £20,000 for a repeat breach. Scotland and Wales have no Right to Rent scheme. Use our landlord certificate checker to see which checks apply to your property.

Data protection

Referencing involves sensitive personal and financial data, so treat it carefully:

• Only collect what you need, store it securely and delete it when you no longer need it, for example once an unsuccessful applicant has been told.
• Tell applicants who will check their data and why. Referencing firms normally provide the consent wording.
• The ICO says landlords who carry out credit checks, obtain references or decide which tenant gets the property usually need to pay the data protection fee. If a fully managing agent does all of this for you, you may be exempt. Check the ICO guidance.

Ways to keep the cost down

• Use a membership discount. Landlord association members often get cheaper referencing, as the NRLA rates show.
• Reference only your preferred applicant rather than everyone who views. Ask key questions about income and history at viewing stage first.
• Pick the level you need. A basic credit check may be enough in some low-risk cases, but a full reference is the safer choice for a new tenant, and is usually needed if you want rent guarantee insurance.
• Reference a guarantor only when the applicant needs one. A guarantor reference costs about the same as a tenant reference, so wait until the applicant’s affordability result shows a guarantor is needed. Our how to become a landlord guide sets out every step before the tenant moves in.