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Austin Kelly discusses how to write a personal reference letter, emphasizing only accepting requests from individuals you know well enough to discuss positively. Key elements to include are: 1) the relationship to the candidate (e.g., volunteer work or neighbor), 2) the duration of the relationship (e.g., known for over six years), and 3) positive personal traits that relate to the job. It's important to convey your genuine perspective on the candidate's character and qualifications. The tutorial guides on ensuring the reference letter effectively supports the candidate's application through these structured elements.