The Truth About Renting with a Debt Relief Order in the UK

When a tenant tells me they have an active Debt Relief Order, my first thought is the referencing report. I've run enough of them to know exactly what that line looks like on a credit file. And it's almost never good news.

What a DRO looks like on a tenant's application

A Debt Relief Order (DRO) is a form of insolvency for people with low income, few assets, and total debts under a set limit. It's designed to write off those debts after 12 months if circumstances don't improve. But on a credit file, it's a red flag. When I run a tenant referencing check, the DRO shows up as an insolvency event. Most referencing agencies treat any active insolvency as an automatic decline or a 'refer to landlord' flag. I've seen landlords overlook a few late payments. An active DRO is a different animal. It tells me the tenant currently cannot meet their financial obligations, and that's a problem when I'm about to hand them keys to a property worth more than they owe.

Why I (and most landlords) say no

There's no law stopping a landlord from renting to someone with a DRO. But most of us won't. The main reason is risk. If a tenant with an active DRO stops paying rent, I can't just add the arrears to their DRO. I'd have to go through the eviction process, which is slower and more complicated now that the Renters' Rights Act is changing things. That Act is rolling out new rules around possession grounds and longer notice periods, which makes a risky tenant feel even riskier. I'm not a lawyer, but the direction is clear: landlords are more cautious about who they take on.

Another issue is referencing. If a tenant has an active DRO, they've likely already failed the referencing stage. Most agencies won't even pass the file to me without a guarantor or six months' rent upfront. And I'm not comfortable asking for that. It feels like punishing someone for being broke, which isn't the point. The point is I need a tenant who can pay rent every month, not one who's already insolvent.

What to do if you have a DRO and need to move

If you're a tenant with an active DRO and you need to move, my advice is not to leave your current place voluntarily if it would make you homeless. The council's homelessness prevention team has a legal duty to help you if you're threatened with homelessness within 56 days. They can provide deposit support, help with rent in advance, and sometimes even talk to landlords on your behalf. I've seen this work. A tenant I knew got a council-backed deposit guarantee and found a private landlord who accepted them because the council stood behind the first few months' rent. It's tough, but doable.

Don't wait until you're actually on the street. Contact the council as soon as you know you might have to leave. They can assess your situation and offer a prevention duty. Some councils have schemes specifically for people with poor credit or insolvency history. It might mean renting from a housing association or a private landlord who's part of a council scheme, but it's a way in.

A final thought for landlords

If you're a landlord reading this and a DRO applicant comes your way, think hard before saying no automatically. Sometimes a DRO is a sign of past mistakes, not future failure. I once rented to a tenant whose DRO had just ended. Their credit file still showed it, but they'd been discharged and were rebuilding. I asked for a larger deposit and a guarantor, and they stayed for three years without a missed payment. Not every DRO is the same. But while it's active, I'd be very cautious. The eviction risk is real, and the legal landscape is only getting more tenant-friendly. Check your local rules, talk to your referencing agency, and trust your gut.