A failed referencing result deserves a closer look before a landlord decides what to do next. OpenRent’s updated guide distinguishes affordability concerns, adverse credit, limited credit history and previous letting references. These are different issues, and a summary label does not explain which evidence is missing or disputed.
Read the detail
Identify the specific reason recorded by the provider and ask the applicant to clarify relevant gaps. A report that cannot verify information is not the same as evidence that the information is false. Keep a clear note of any correction and how it affects the assessment. Avoid promising acceptance before outstanding checks and any relevant insurance conditions have been reviewed.
Assess income fairly
For England, government guidance says benefit income must be considered in the same way as other income when checking affordability. Landlords may decline an applicant who genuinely cannot afford the rent, but excluding benefit income from the calculation can amount to discrimination. The check should answer a financial question about the proposed rent, rather than apply a blanket assumption about a group of applicants.
Do not use an old upfront-rent workaround
The archive version of this article suggested seeking several months of rent in advance. That is not an appropriate general recommendation under the current rules for assured periodic tenancies in England. GOV.UK says rent must not be requested, encouraged or accepted before both parties sign the agreement. Between signing and the tenancy starting, the usual maximum is one month’s rent for monthly payments, or 28 days where rent is not paid monthly. Limited exceptions are explained in the official guide.
Check any proposed safeguards
If a guarantor is being considered, obtain appropriate advice on the agreement and the obligations being accepted. Do not assume that adding a guarantor automatically satisfies an insurer’s conditions. OpenRent’s guide itself distinguishes different insurance eligibility outcomes depending on which check failed. Read the actual policy and obtain written confirmation where necessary.
Finally, record the reason for the decision and communicate it clearly. Review any holding-deposit question under the applicable rules rather than treating a failed report as an automatic entitlement to retain money. A careful process should help both sides understand the evidence and avoid relying on outdated advice.
Sources: OpenRent’s referencing guide; GOV.UK guidance on benefit discrimination and rent in advance.