Understanding Rent: How Much Rent Can I Afford to Pay?

admin    Tenants    

Sometimes renting a home makes more sense than purchasing a home. If your job entails transfers or seems unstable, you would be better off to rent first. It’s also a good way to get to know the area you’re interested in living long term without committing a large sum of money for a purchase.

In order to figure out how much you can afford to pay in rent, there are a few things you should consider first:

When considering you as a potential tenant, a landlord will look at your income to determine if your gross income would cover the annual rent by a ratio of 2.5 times your annual salary before taxes. So for example, in order to be considered by the letting agent, if your rent was going to be £6000 per year (or £500 per month), you would be required to make a gross annual salary of £15000 before taxes.

To work out what your own budget will allow for rent, you’ll need to do some simple math. You need to work out absolutely everything you spend your money on, including how much you plan on spending on holidays or have put away for emergencies. Then figure out what your take home pay is (salary less taxes) which will be your net income.

Now write down all of your monthly expenses including car loans, credit cards, petrol, holidays, groceries, utilities, food, clothing and anything else that you spend regularly. This would be considered your long term debt.

Now subtract your long term debt from your net income and what’s left is what you can afford to pay for your monthly rent. This total for rent should include your contents insurance.

An easy way to think about what you should be capable of spending is to take 25 – 30% of your net income and this is what you should be paying for rent. So for example, let’s say you make £20000 per year you might be looking at a rent payment of about £5000 – £6000 per year (or £416 – £500 per month).

No matter what the numbers say on paper, you should only pay what you feel comfortable paying. After all it’s your money and only you know how much money you have left at the end of each month.

10 Tips to Find Your Ideal Property Rental

admin    Tenants     perfect property rental, property rental, property rental checklist, rental property

We’d like to help you get that perfect property rental you’re looking for, and since it’s a “perfect” property for you, it’s also likely that it’s a “perfect” property for others as well. So by following these tips you will be better prepared to land the right property rental for you.

1. Determine the Perfect Property Rental

Although it seems obvious, the first thing you need to do is to figure out exactly what “perfect property rental” means to you. Most people are unable to describe what they need or want in a property rental. So by writing down your “needs” and “wants”, you’ll have a better chance of recognizing the best property rental that suits your needs.

For example, write down whether it must have a 2^nd bathroom, lots of storage, no stairs, and number of bedrooms or whether the property rental must be close to local transportation. As soon as these decisions are made you’ll be on your way to finding your “perfect” property. Before booking an appointment to view the property rental you’re enquiring about, ask the landlord if it has all of your “wants”. If not, don’t waste your time.

2. Use the Internet to Find Your Property Rental.

You will save a lot of time and energy searching if you go directly to the area agent’s website. By using the agents direct website you’re more likely to find an up-to-date listing, rather than the portals that can be quite out of date.

3. Have your references ready.

Landlords and Letting Agents will require them so make sure you have your financial or employment reference that shows you are financially capable of paying the rent. Your income should show that you make two and a half times more than the rent. If you are self-employed your accountant will need to prepare a statement that indicates ability to pay the rent.

If you can secure a letter from your previous landlord that claims you were an ideal tenant who paid on time and kept the property in good condition, it will also go a long way. Make sure you also inform your referee’s to expect a phone call so time is not wasted waiting on replies.

4. Let your present landlord (if applicable) or letting agent know that you will be leaving.

Giving appropriate notice is ideal and if you are able to move into the new property quickly, you will be put on the top of the priority list for the new landlord or agent.

5. Visit the Area.

If there’s a particular you would like to live in, visit the area so you’ll be more equipped with information such as close proximity to shops, schools, transportation etc. Very often these areas will have a local board that will post local phone numbers for agents in the area.

6. See as Many Properties as Possible.

Make a list of the most desirable properties and try to get in to see as many as possible at one time. If most people can only see properties after work or weekends, try to take a day off so you can see many in one day. This might give you an advantage if you can see properties before anyone else.

7. Don’t Hesitate.

When you see the property you think is right for you, don’t hesitate. If it’s the right property for you someone else is thinking the same thing. Put a deposit down immediately so that the landlord knows you are serious. If you wait, the property will go to the first person that’s ready and willing to commit.

8. Offer the Longest Rental Period.

If possible offer the longest rental period you can so that the landlord will see you mean to stay. Landlords don’t like to have empty properties, and although he will likely offer a 6 month term, by stating your intentions of being a long-term tenant, it should put you on the top of his list.

9. Move In Quickly.

It’s important to be prepared to move in as quickly as possible. Even if you don’t intend to move in on the date you specify, landlords want to have tenants move in within days not weeks or months.

10. Make a Decision!

And lastly, Make A Decision! By procrastinating like so many others, the
perfect property will slip through your fingers. Don’t wait and over think your
decision – it could be too late!

Good luck with your search!

The Benefits of Private Landlord Lettings

admin    Tenants     private landlord, property rental, tenancy agreements

There are many advantages from renting from a private landlord. The most important advantage is that you will likely be paying less rent. And who doesn’t want to have less of an expense for their rent each month? But the advantages are not limited to the rent you’ll pay.

Communicating directly with the private landlord gives you a better chance of showing your most redeeming qualities and establishing a more personal relationship right up front. This will give you a better opportunity to show what a good tenant you would be, or to introduce a pet that you are trying to have included in your tenancy. The more a landlord likes you and gets to know you the more likely he might be to decreasing the rent. A private landlord is looking to rent to a responsible person that they can trust with their property and who will pay their rent in a timely fashion.

Since you won’t need to go through a letting agent, a private landlord does not pay an additional fee which means he can pass this saving along to the tenant by charging less rent. As a private landlord it is unlikely that he will have the means in which to perform a credit check which also cuts down on the amount of money a landlord pays out of pocket, not to mention the advantage this presents if you have bad credit, ccj’s or bankruptcy in your history.

Also because most private landlords do not perform credit checks and other administrative functions, the move in date is generally much quicker. Private landlords are looking to get their properties rented as quickly as possible so that the amount of lost revenue is kept at a minimum.

You will also find the term of tenancy to be more flexible than if you were to go through a letting agent. With a more personal relationship, you are more likely to negotiate a rental agreement that is suitable for both yourself and the landlord. The entire experience with a private landlord is more personable and can lead to a long and enjoyable relationship that benefits all those involved.

A letting agent generally charges additional fees for credit checks and references sometimes check in and check out fees, which are fees that you would not expect to pay when dealing with a private landlord. The savings can leave you with more money in your pocket for other expenses that are associated with moving.

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Renting a Property with Pets

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Most pet owners look at their pets almost like family. And of course they are well behaved and no trouble at all! Unfortunately, not all landlords are pet lovers so you may have a difficult time convincing them that little “Fido” or “Fluffy” are not going to cause any problems.

The reality is that most pets do leave the rented property in a smellier and dirtier condition than when they arrive. Your best bet is to purchase pet insurance, as most of the insurance policies not only pay for vet bills, but will also cover damage to someone else’s property through the liability insurance.

A lot of landlords are reluctant to letting dogs onto their property, especially those with long hair that tends to shed profusely. Although it sounds strange, some pet owners have produced a C.V. for their dogs, giving as much detail as possible. You might want to include things like breed, age, temperament, last set of shots, whether it’s been to training, how quiet he tends to be and anything else that might convince your prospective landlord that your dog should be welcomed as part of your family.

Be prepared however to pay more of a deposit as a security measure should the landlord need to do a more intense cleaning or repair damage done by your pet once you have decided to move out. By agreeing right up front to pay extra for this unlikely event, could be seen as a good faith measure by the landlord and would have him looking favourably at your application request.

If the landlord is still not convinced, you might want to ask him to visit you at your current home to see just how clean and damage free your living space is in, which may win him over. If this is not possible, your current landlord might be willing to write out a reference for you to give to the new landlord stating that they have had no problems with your pet.

Make sure no matter where you live, that you leave your rental unit in the same condition as you found it, as stated in your tenancy agreement. We all want to have our “family” members with us, but we must be considerate of others at all cost.

Renting a Property with Bad Credit, CCJ’s, IVA’s or Bankruptcy

admin    Tenants     property rental

Does having poor credit stop you for being able to rent a property? No of course not. There’s always a way to get around any problem as long as you know where to go and what to do. Just because you’ve been turned down because of bad credit or bankruptcy before at some locations, doesn’t mean
you’ll never find a place of your own.

The first thing you need to do is to find out exactly what your credit history is saying – what are potential landlords and/or letting agents seeing when they look at your credit.  Know exactly how many and who you have ccj’s with and be willing to disclose this information right from the beginning.  Being honest about your past can go a long way in getting the landlord or letting agent to see past those unfortunate problems from your past.

Don’t forget, both landlords and agents want to help you, because it means money in their pockets – they just want to know what type of a person you
are and that they will receive their money each and every month. Not every
landlord or agent goes to the trouble of getting credit checks so ask before
you go to see a potential property what references they require and do they
perform credit checks.

Try to avoid those properties that do require a credit check to be done. No sense setting yourself up for let-down right off the bat. Having said that however, you must be very cautious about renting from a landlord who doesn’t take the time to check out potential tenants. This could indicate that the landlord may not be too concerned about any problems or repairs that you may have throughout your tenancy.

One other possible avenue is to seek a property from a private landlord. Since the majority of the private sector does not have a means of doing credit checks,
your bankruptcy or bad credit need never come up. If you are able to get a
reference from a previous landlord showing what a good tenant you had been and how they had received your rent on time can also go far in securing good faith.

Bad credit does not have to define you. You could also seek a guarantor or someone who will move in with you to share the rent. This person would need to have the necessary credit rating and would be equally responsible for the rent. The landlord would have a legal right to pursue both you and your guarantor should the rent not be paid on time.

Obviously the ideal situation would not to have gotten into trouble with your credit in the first place, but because there are several reasons – some completely out of your control – for having bad credit or going bankrupt, the next step is to correct the problem and get back on track.

Tenancy Deposit Schemes – Basic Guidelines

admin    Landlords, Tenants     landlord responsibilities, letting agreement, Rental deposits, Tenancy deposit, Tenancy Deposit Scheme

Ever since the Government introduced The Housing Act 2004 to protect the tenancy deposits under the Tenancy Deposit Protection Scheme, there have been 3 companies awarded the rights to run two types of Tenancy Deposit Protection Schemes.  Both of these schemes apply to residential property being rented in England or Wales, no matter whether the landlord and/or managing agent operates overseas.  Theses schemes do not apply to commercial property, when rent would be greater than £25,000 or if the landlord is also a resident of the property.

Both types of Tenancy Deposit Protection Schemes are generally supported by some sort of call centre and some would have a way of performing on-line registration or paying for the deposit.  A deposit has been set out as any amount of money paid in addition to rent as security and would include fees for cleaning and amount added to the rent monthly as long as the tenancy deposit is not used for making repairs or paying expenses.

The Custodial Tenancy Deposit Scheme is a deposit held by the scheme in a separate account where the fees were funded by the accruing interest of the Tenancy Deposit or by the government if the interest rate was too low to generate enough interest.   Within this scheme there are two ways in which the deposit is handled.
Several tenants could each give a deposit and it would be designated as Room A, Room B, etc, or there can be one deposit representing all of the tenants.  A main tenant would be chosen for correspondence purposes, however if tenants chose to vacate at separate intervals, this plan would be extremely difficult to control as the deposit must be repaid in full.

The Insurance Based Tenancy Deposit Scheme is differentiated by the deposit being held by the landlord and/or managing agent and is secured by the landlord paying fees and an insurance premium to a Scheme administrator.  It would be the administrator’s duty to ensure enough insurance was in place in order to assure full repayment of the Tenancy Deposit.  Within this type of schemes there are two approved – one being “The Tenancy Deposit Scheme” which can be used by all landlords, however, since April 6, 2009 this scheme can only be used by regulated agents.  The second scheme is the “MyDeposits” (previously known as Tenancy Deposit
Solutions Ltd.) and is aimed more for the landlords.  It consists of a onetime fee plus additional fee for each tenancy deposit, as well as an annual renewal fee.

The penalties can be quite severe for landlords who don’t comply with the Housing Act, so understanding the necessary information is vital to all parties.   At the end of the tenancy agreement both parties will need to come to an agreement as to the amount of the tenancy deposit due as a return to the
tenant.  If both parties are in agreement, the tenancy deposit is required to be returned within 10 days.

If however there is a disagreement over the amount, the desired course
of action would be to go through the Alternative Dispute Resolution (ADR), rather than having to resort to the courts.

The Tenancy Deposit Schemes have been put into place to protect all parties, and it is the responsibility of both parties to understand what is required of them prior to entering into any sort of tenancy agreement.    As with any legal document you should always try to obtain legal advice prior to making a decision on which Tenancy Deposit Scheme you wish to venture into, as well as the tenancy agreement.

Tenancy Agreements — Know Your Rights

admin    Landlords, Real Estate, Tenants     landlord responsibilities, letting agreement, tenancy agreements, tenant rights

When first moving into a new flat or rental unit, the excitement can be over-whelming. While this is always a good sign, it is always important to know and remember your rights as a tenant, should you need to exercise them in the event of a problem during the letting period. Likewise, as a landlord it is equally important to know and understand what the rights of both you and your tenants, should there be an issue down the road.

Insurance is the first right both the tenant and the landlord share equally. On the landlord side, maintaining adequate insurance on the rental property is the utmost important way to secure your investment, in the event of an accident. This means, while the tenant is living there, should a fire, flood arson etc. happen, your physical home is covered. Always check with an insurance agent about proper coverage for your unit. A tenant should always secure insurance on a rental property prior to moving in, for the same reasons. Should there be an accident or incident in the home, many times a landlords insurance will not cover your own private property (think you bed,television, computer or kitchen appliances.)

Rental upkeep is yet another common right both landlords and tenants share equally. In the event of repairs being needed on the rental unit, it is the landlords responsibility to make sure they are made in an orderly and prompt fashion. In order to notify the owner of such needed repairs, they are expected to provide accurate and current contact information to the tenant.

As a property owner, you have the right to ensure your property is being treated properly (not damaged or used for malicious purposes) and as such, you are entitled to enter the property after giving the tenant 24 hours notice.

In regards to monetary amounts, a landlord must put the rental deposit in trust immediately after approving the lease (see rental deposits for more information) and ensure the amount is returned promptly within 30 days of the lease being terminated. In the event of needed repairs, property owners need to justify withholding any monies from the tenant. Likewise, a landlord also has the right to collect any past due rent or arrears from the tenant. A landlord may visit their tenant at any time to request the amounts in full.

Subject to not receiving any compensation, a landlord also has the right to remove any tenant from their property (only following proper legal actions.)

Knowing and respecting tenancy rights is both a landlord and tenants responsibility meant to be shared equally. Knowing these rights can save hours of frustration down the road, should a problem arise.

Types Of Letting Agreements

admin    Tenants     letting agreement, property rental, rental home, rental property

There are two basic letting agreements regarding letting a flat or house.  Both agreements are legally binding and should be determined by how long the unit is needed for.  No matter which letting agreement is settled on, both parties should investigate all legal documents needing to be signed to protect themselves should a problem arise.

One of the letting agreements is called, Assured Shorthold. This agreement has to be for a minimum of six months without an increase in the rental amount during this time. At no time can a landlord evict a tenant before the end of the binding letting agreement, unless there is a court order and just cause.   After the term has expired, the tenant can be asked to leave.

The second letting agreement is called, Assured Tenancy. This agreement is a more secure rental when needing housing for a longer period of time.  The landlord can not evict the tenant before the expiry of the letting agreement unless there is eviction grounds filed with a court.  If a tenant receives a notice to vacate the property, it is advised to seek legal advice immediately.  Whether the flat or house is left unoccupied by the tenant before the end of the agreement, the tenant is still liable for the rent.  There is an option of subletting the flat to another occupant, however, the landlord must approve of this change in occupancy, therefore ending the agreement.

If a tenant is not sure which letting agreement is best suited for them, it is best to investigate each agreement before signing it.  If there are going to be joint or multiple occupants in one flat or house, and the agreement states, jointly or severally liable, than all tenants are responsible for the rent and any damage charges if one or all the tenants vacate the flat or house.

Once the flat has been agreed on, a tenant should agree with an inventory and schedule of condition with the landlord.  This letting agreement can be done by either party and should be signed by both parties at the beginning and end of each let cycle. An inventory and schedule of contents states the contents in the house or flat along with the cleanliness, decoration and damage, if any, of the unit.  This assures the tenant will not be charged or be held responsible for existing damage.  It also assures the landlord the state of the flat is in good working order.

Knowing what each letting agreement entails are imperative before signing any legal document.  Moving can be a stressful situation on its own, let alone, having the added stress of having to leave the flat or house at an unwanted time.

Understanding Property Rental Credit Checks and Property Rental References

admin    Landlords, Tenants     letting links, letting rental, property rental, property rental credit check, property rental reference

Whether you’re a tenant or a landlord, you’ve probably heard the terms property rental credit checks and property rental references before—but if you don’t know how they should be used, or why you should ask for them—it’s just another piece of paper to add into the mix. So before you run off and get property rental credit checks and property rental references gathered up, let’s take a second to understand how they’re used – and how you can secure the best possible outcome for your checks and references, regardless of if you’re a tenant or a landlord.

A property rental credit check is essentially a piece of confirmation you are, who you say you are. A landlord will often order a property rental credit check to make sure that the tenant applying for the flat is being completely honest about who they are, as well as checking to make sure the tenant is financially fit to rent the property in question.

A property rental credit report will normally consist of various items, but mainly act as a safe guard to proprietors. The report will generally contain information about
previous bankruptcies, insolvencies, bad credit, no credit or any other outstanding financial concerns. Depending on the provider, information such as employment history and current rental arrangements may also be disclosed. The report will put any comments the current landlord may have about the tenant in question (late payments, unruly behavior etc.) as well as the duration of the letting. Some landlords however, may decline the opportunity to have any information disclosed about the tenant – should this be the case, the report will show that they have spoken with the landlord, but commentary was refused.

Property Rental References on the other hand, are a tenants way of showcasing their true “personality” via other people. The types of property rental references required varies greatly depending on the landlord, however, generally speaking a landlord likes to have 2 personal references as well as a professional reference (these may differ depending on your current rental agreement.) The landlord will normally ask for these references before signing the lease, as to confirm what the tenant is claiming – is actually true. There are situations where a landlord may put restrictions on family references, purely because of biased opinions. A family member will normally leave a glowing recommendation for a not-so-stellar family member, where as a friend (despite being a personal reference) may give tips or hints as to the potential tenants true character.

Always make sure to check your own credit history prior to applying for a lease, as you are responsible for your reports accuracy. Note any discrepancies as well as any “problematic” areas you may find. Although you may not be able to remove them, you may be able to determine your best possible explanation ahead of time, instead of being caught without any notice. Landlords do not always expect a perfect property rental credit check, but they would like to see stability, security and the capacity to live in the unit in question. Although they may seem like a burden, property rental credit checks and property rental references actually make the letting process easier for everyone involved.

What Can Tenants Renting a Flat Do About Unfit Properties?

admin    Tenants     landlord responsibilities, property rental, tenant renting a flat, tenant rights

It is typical that the landlord is responsible for the structure of the flat while it is being let to a tenant. Items such as; electrical, structural, plumbing, fixtures should be maintained and repaired by the landlord during any time of the rental period. If a rental property should sustain such a repair where it can be hazardous to the tenant renting a flat or a health issue, the landlord should be notified immediately. Most landlords will respond to such repairs and unfit properties immediately so that the tenant renting a flat does not suffer both physically and or emotionally. A tenant renting a flat needs to state the unfit portion of the unit in writing to
the landlord when the issue is observed or noted. The landlord inspects the area and gives 24 hours notice to enter the premises to repair and resolve the issue. If there was an emergency the landlord may enter the flat immediately.

There are times when the landlord will not oblige to these unfit rental property conditions when the tenant renting a flat takes appropriate action to rectify the situation.

If a tenant renting a flat has given notice to the landlord and has not had a response, the tenant renting a flat has a few options. If it is stated in the let agreement, the tenant renting a flat may fix and repair the flat and the cost of
the repairs are to be reimbursed by the landlord. A tenant renting a flat may not withhold rent for the cost of the repairs and is required to continue paying the full let amount or they can face eviction. If the landlord does not reimburse the tenant renting a flat for the repairs the tenant renting a flat brings the landlord to court and has costs awarded through the court.

When the unfit rental property falls under the health and safety issues, the tenant renting a flat can contact the local council who will investigate the unfit rental property. It is the local council that takes further action against the landlord to
ensure the flat or house is in good working condition for a tenant renting a flat.