Firstly am I right in thinking that the landlord needs to pay for referencing for both tenants AND guarantors, and this cannot be passed on to the tenants? And if they both fail and I am not willing to take any risk, I guess that it and I refund the holding deposit in full?
I want to know the same as this is our first time using Open Rent and it looks like we also have tenants that have failed referencing.
Yes you pay for both. No charges can be passed on to tenants.
If EITHER fail, I wouldn’t take the risk. Yes, refund holding deposit if you’re not going to proceed with application unless you find out something they hid from you e.g. a CCJ when you have proof that they told you they didn’t have a CCJ, etc.
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Correct. Referencing costs cant be charged
Tenancy fees act it would be a prohibited payment
Refund holding deposit unless they provided misleading info
This is basic stuff. Maybe consider doing some LL training
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I’d add that many inexperienced LLs do referencing as a first step. In my experience, it’s the last step of the process, otherwise you’re throwing your money away.
So, have a phone call with them and ask screening questions to establish they are a match for your property. Ask them up front questions about finances and credit history.
Do a viewing with them. If you still like their vibe, give them a data protection form, take their ID and invite them to apply. (If they’re non-UK nationals, carry out right to rent check while they apply). Ask them also to provide 6 months bank statements and (if applicable) payslips.
Go over these bank statements in detail. Call them and ask any questions you have. If anything here raises flags and their responses dont reassure you, stop at this point.
Verify that they work where they do by asking for a work email for someone who can vouch for them and/or LinkedIn profile. Email that person and say you’ll be formally doing referencing but want to simply vouch for their employment status at this point.
Ask them for their social media profiles and check them out (friend them if you need to get access).
If they’ve got a guarantor, check that person owns their property by a quick and cheap land registry search. Get 6 months statements and payslips off the guarantor and do the same due diligence. Verify their employment the same way.
If at this point, everything checks out and you don’t have any doubts, then pay for referencing because, by now, it will simply allow you to verify everything you have already found out.
If they fail at this final hurdle, well you did your best. But I don’t see the point in paying for referencing until all the above has been done.
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Hi, I am guessing you have the option on open rent to refund the holding deposit?, this is my first time using their service.
What I can’t understand is the landlords are demanding a Guarantor asking a outrageous earning for people on Benefits but the Benefits are Guaranteed the Guarantee might lose their jobs, surely the Government is a better way to go ??
You trust the government??? Benefits can be stopped if there is a false claim that the landlord knows nothing about. The only certain thing is uncertanty
Yes I do , it’s people I don’t trust , claiming benefits is easy to find out especially if your a landlord as you can ask you rent to be paid directly to you, so I do thing it’s a better way to go !
I do understand the frustration a landlord must feel when he has no rent money coming in, but I honestly think if unfair on claimants who are extremely good tenants to be dismissed so easily.
The government is made up of people…you do know that a tenant can cancel the direct payment anytime they choose , So it is not certain also if the tenant has lied to claim benefit for rent and it is direct paid to the landlord the council will demand it back from the landlord.
no actually the govt position is that it is for benefits to be paid to claimants and only after there are arrears and with agreement of tenant can they be paid direct to the LL.
"The default position in Universal Credit is that claimants should manage their own finances, including payment of their rent. This encourages self-reliance and eases the transition back into work.
Where a claimant is vulnerable or if they get into arrears, rent payments may be sent direct to their landlord, on their behalf. Decisions related to direct payments of rent must be based upon the claimant’s best interests.
Tenants remain responsible for their rental liabilities, even where payment goes straight to their landlord".
https://questions-statements.parliament.uk/written-questions/detail/2026-07-06/16351
And the evidence is those on UC more likely to get into arrears and with bigger arrears.
" Residents paying by Universal Credit continue to be more likely to be in arrears than tenants paying by other means"
Source: National Housing Federation National Housing Federation - Our research on Universal Credit and rent arrears
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Hi
Thanks for your message, I am now retired and get a pension my daughter is on lifelong disability and we were asked the question would we want the rent money going to ourselves or to the landlord?
Exactly- unless the tenant agrees to it, it doesn’t go direct to LL, and the default is that it doesnt go direct to LL. The LL cant force it to happen.
LLs can no longer have a policy of not renting to benefit claimants due to RRA, but they can assess risks and ask for a guarantor just the same as they would for someone else earning the same amount from employment
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They might… but it’s far less likely they’ll lose their home which is what they can borrow against in a worst case scenario where they have to pay off a tenant’s debts.
Guarantors should be homeowners.
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If you ask them to complete an application form before referencing and they lie on the form, you can keep the holding deposit if they fail referencing for a reason related to the lie.
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