Beware The Absence Of Paperwork

Avoid like the plague the landlord willing to offer some ‘back of the envelope’ type of tenancy – the last thing a modern tenant needs is a landlord who skirts round the legalities over such huge financial obligations. Organised landlords know what they need. They’re the ones who aren’t interested in scams, in trying to charge for things that have never been discussed, let alone agreed to by tenants. Okay, in reality an assured shorthold tenancy can be legally set up without a shred of paperwork – but that’s not what you want.

Organisation proves a mindset of responsibility and with rents this high, who wants a disorganised landlord when the boiler breaks down? Or all those fights over what the conditions were when deposits need returning? Paperwork protects tenants and landlords. Don’t be tempted to skirt round them in such costly contracts. It’s a recipe for future trouble.

A Word About Inventory Costs

Let’s be clear here, whether you’re renting from a private landlord or via an agent, inventories are absolutely essential to protect both tenants and landlords. You need an inventory – a freshly prepared one that accurately reflects the genuine condition of the property.

Inventories are closely tied into the deposit structure – so they really do matter and are explained more fully in Lesson 4.

Inventories are one of the most contentious areas of ‘the business’ and so closely tied into the deposit structure that no sensible tenant can afford to be blasé about them. Read up on deposit charges and inventories – not knowing what you’re legally liable for can be a very costly bit of ignorance.

Examining The Options Realistically

All these various charges and services need to be considered when working out what you can and cannot afford. Tenants renting relatively lower priced units very often find themselves renting via independent landlords who simply don’t generate the profit levels needed to engage agents – or choose not to pay them because they know perfectly well how to run a tenancy.

Also bear in mind that agency fees for many other services can be very hefty. Not only do they levy high fees from the landlord for their services, but also their end of lease redecorating, cleaning, and repair services can be very expensive – especially if they have a good sized deposit to work through at the end of a tenancy. (Much of this will thankfully change with the new Tenancy Deposit Scheme – explained later – soon to come on-stream.)

Sometimes properties available to let through agencies can be more expensive than similar properties available direct from private landlords. The landlord’s agency fees have to be incorporated within the rent, and you will be paying them. Agencies usually charge landlords around 15 per cent plus VAT of the rent for management – money that comes from higher rents. For some tenants this is worthwhile, but many others prefer to find their own landlord.

Finding The Independent Landlord

Check the local classified section or ‘property to let’ column. Many of the advertisements will have been placed by agents, but they are often required to indicate that they are trade, or to state their company. Some free advertising papers even require anything other than private advertising to be in bold print so that it is very easy to recognise. Rule of thumb. Wherever it’s glitzy, it’s an agent.

Look through the smaller adverts and there you’ll find thousands of private landlords who advertise here direct – every single day of the week. Check the price range you are looking for. Rental valuations depend on a number of different factors; the area, the condition and the facilities offered. The valuations will vary, so check over a couple of weeks to get a feel for the price range you are looking for before you start making appointments to view. And again, watch out for charlatans.