Cost guide
How much does a Tenant referencing cost?
Are you a landlord preparing to welcome new tenants? Understanding the cost of tenant referencing is a smart first step. It helps you budget effectively and find reliable services. Typically, tenant referencing in the UK costs between £20 and £60 per applicant. This essential service includes crucial checks. You get credit checks, employment verification, and references from previous landlords. It also supports your Right to Rent obligations. These checks give you peace of mind and protect your investment.
Typical price
£20 to £60 an item
What's usually included
- £20 to £60 per tenant
- Guarantor checks are usually extra
What changes the price
Service Level
Basic checks might cost less, while comprehensive reports often involve more detailed investigations.
Applicant Numbers
Referencing multiple tenants for one property can sometimes offer a small discount per person.
Speed of Report
Faster turnaround times for urgent references may incur a slightly higher charge.
Additional Checks
Extra checks, like international referencing or deeper financial dives, can increase the overall fee.
Provider Choice
Different referencing firms have their own pricing structures, so comparing quotes is always a good idea.
Package Deals
Some companies offer bundled services, combining referencing with other landlord tools, which can be cost effective.
Prices by region
| Region | Low | Typical | High |
|---|---|---|---|
| London | £30 | £50 | £60 |
| South East | £25 | £45 | £55 |
| South West | £20 | £40 | £50 |
| East of England | £25 | £40 | £50 |
| Midlands | £20 | £35 | £45 |
| North West | £20 | £35 | £45 |
| North East and Yorkshire | £20 | £30 | £40 |
| Scotland and Wales | £20 | £35 | £45 |
Questions people ask
Why should I bother with tenant referencing?
Tenant referencing helps you select reliable tenants. It minimises risks like rent arrears or property damage. It provides assurance about an applicant's suitability.
What's included in a typical referencing check?
You can expect a credit check, employment verification, and a reference from a previous landlord. It also includes checks to confirm the tenant's Right to Rent status in the UK.
Do I pay per tenant or per property?
Referencing costs are usually charged per applicant, not per property. If two adults apply for one home, you would typically pay for two individual references.
Can I do the referencing myself to save money?
While you can do some checks yourself, professional firms have access to specific databases and expertise. This ensures thorough and legally compliant referencing. This helps protect you from future issues.
How long does tenant referencing usually take?
Most standard referencing checks are completed within 2 to 5 working days. Complex cases or unresponsive referees might extend this timeline slightly.
What if a tenant fails their referencing checks?
If an applicant fails, the report will highlight the reasons. You can then make an informed decision about proceeding with their tenancy. This protects your interests as a landlord.