How Renting Works

Tenants need some basic explanations about the contracts on offer and other associated but important issues. Most are touched on in Lesson 1 to get you started, then delved into more deeply in the relevant lessons. Just keep reading. This lesson will give you a pretty good idea of how renting/letting works long before you start signing contracts that you can’t get out of.

For most tenants, their first step is to find out the going rate for properties that match their needs, in other words, how much what they want will actually cost them. Savvy tenants will check the papers, research online and visit agents to get a feel for how much money will be involved in what they’re looking to rent. Landlords and agencies are, since the introduction of the Housing Acts 1988, allowed to effectively charge the local ‘going rate’ for all assured shorthold tenancies. There’s therefore very little that most tenants can do to control costs but to shop carefully.

Where To Start Your Searching

Online Research

www.whatever is an excellent place to search through, but online letting has not yet really taken off. Although it’s an invaluable research tool, most private landlords (who remain the majority providers) still stick with newspaper advertisements. This means that online alone can actually distort your view to the only set of suppliers who always use it – i.e. the letting agents, whose rents are often higher because they incorporate fees. Make sure you never rely on only one perspective in such a diverse marketplace. Even if you’re searching from some distant town (or country) make sure that you explore all the options.

Specialist Services

• Students should always explore their own university’s accommodation service where decent property is often available. Check whether or not these units have been checked for safety – some universities simply provide lists, others carry out extensive safety checks and accredit property.
• Other tenants may wish to try contacting the local authority in the area they’re looking to rent in – many grew so tired of substandard accommodation that they drew up lists of accredited properties that comply with all safety requirements and have responsible landlords. Quite a few now have extensive lists of recommended properties that rarely come onto the open market via agents or the newspapers.
• Both the above options are a great place to start for students and the second is an excellent first choice for all tenants looking for keenly priced units.
• Tenants searching for property whose first consideration is not cost but location could do worse than explore a local relocation service – however once found, the terms/conditions would not be ‘guaranteed’ and users still need to read the full guide to avoid pitfalls.

The Lettings Agencies

Most towns are now awash with lettings agencies. These companies are keenly commercial operations which exist to make profits, not to be your friends, no matter how much of a welcome mat they put out for you. They are employed by landlords, not tenants – renting through an agency does not make you their customer, they already have their client – landlords. A quick walk down any high street, or a brief scan through any local paper will show you just how many there are. Every one of them has property on their books and is actively looking to get tenants into contracts. But beware: all agents have many additional up front fees. Added up, they can come as quite a shock to the unwary.

Finding accommodation through agents can have some unexpectedly high add-on costs and I take a look at some likely ones in Lesson 5. These can add up to significant sums of money simply to get to the contract stage so make sure that you check the agency lesson carefully – especially if you’re on a tight budget.