Home Renting Guide
Your complete guide to renting a property
Renting property is an attractive option for many people. It affords a more flexible lifestyle and less responsibility than owning property. This comprehensive guide covers everything from finding the right rental property through to ending a tenancy and dealing with disputes.
Introduction to Renting a Home
Renting property is an attractive option for many people for many reasons. Renting a home affords a more flexible lifestyle and less responsibility than owning bricks and mortar. Moreover, in times of falling house prices, renters may well be saving money.
Renting a house or flat is popular with people from all walks of life:
- Former homeowners who have sold a home will often rent in the short term while they take their time finding another property to buy
- Students moving temporarily to a new town typically share the rent of a flat or house
- For those who cannot afford to buy a home, renting is often a necessity
Finding a Home to Rent
Finding a home to rent usually starts with an online rental search such as Home.co.uk, through which you can contact letting agents. You should also:
- Look for advertisements in local newspapers' property sections
- Check for simple homemade signs and notices in shops
- Use word of mouth – consult friends and work colleagues who have rented and ask them to recommend a letting agent
- Ask if they know of any properties for rent
The two ways a home can be rented are:
- Indirectly through a lettings agent
- Directly by arrangement with the landlord
This guide covers the advantages and disadvantages of each option, tips on viewing properties, legal and contractual issues, deposit schemes and insurance. We'll also explore your responsibilities as a tenant and provide advice on what to do when problems arise.
Renting Direct from a Landlord or Via a Letting Agent
There are two main ways to rent a property, each with their own advantages and disadvantages:
Renting Directly from Your Landlord
Advantages
- Dealing with a landlord direct cuts out the middleman and can speed up requests for repairs
- Can build a stronger relationship between landlord and tenant, which can minimise the potential for disputes
Disadvantage
- Without a letting agent there is very little legal redress should issues arise such as failure to carry out repairs
Renting through a Letting Agent
Advantages
- Wide choice of properties to view
- Right of redress through The Property Ombudsman scheme should disputes occur (only available if the agent is registered with trade associations)
- Ensure the letting agent is a member of Propertymark or Safeagent before renting
Disadvantages
- Having an agent can slow down a landlord's response to problems as it creates another tier to deal with
- A good letting agent should arrange provision of a fund for emergency repairs in case the landlord is away or cannot be contacted
Viewing a Home for Rent
It is always advisable to look at a number of homes on the rental market before selecting the right home to rent. However, in some areas, particularly university towns and cities, competition can be fierce and you may need to make a snap decision on a property in order to secure it.
Whether your area has an abundance of homes to rent or competition is high, it pays to ask the right questions of a landlord or letting agent and do a thorough search of the property. Take a friend along – another pair of eyes can be very useful to spot problems.
Viewing Checklist
Check the Property's Condition
Look out for signs of damp, shabby décor, drafty windows, and animal droppings. If the décor is not to your taste or is out of date, ask whether the landlord can redecorate or objects to you redecorating.
Safety Checks
- Are smoke and carbon monoxide alarms fitted?
- How often is the boiler serviced?
- If the home is furnished, does the furniture meet fire safety standards?
Neighbourhood
- Ask the landlord about the neighbours
- Take time to look around the neighbourhood
- Is the area noisy at night?
- Are the neighbours students or other groups likely to have frequent parties?
- Is it an area with a crime problem?
- Has the property been burgled?
Running Costs
Find out whether the rental home has metered water supply, double glazing, and loft insulation. These factors affect your utility bills.
Value for Money
Look at the market and similar properties. Is the property worth the rent being asked? If not, consider putting in a lower offer.
Energy Performance Certificate
Does the property have an Energy Performance Certificate? It should have. Ask for a copy.
Tenancy Contracts Explained
A tenancy agreement between a tenant and landlord is required before a tenancy can be legally binding. For most rented property this will be in the form of an assured shorthold tenancy.
Key Point: Assured shorthold tenancies are for a minimum of 6 months. This applies to both the landlord and the tenant. Sometimes this minimum period can be longer, so check the arrangement carefully, particularly if you think you may want to leave early.
This rental agreement can be oral or written. However, an oral agreement can lead to misunderstandings so it is advisable to request a written agreement. Your tenancy agreement establishes the rights, duties and responsibilities of the tenant and landlord.
Rights to Written Agreements
- England, Wales & Northern Ireland: Tenants in the private rental sector do not have a right to a written tenancy agreement
- Scotland: A landlord must provide the tenant with a written tenancy agreement
If you are in any doubt about a tenancy agreement, it may be worth asking a solicitor to check it for peace of mind.
A Written Tenancy Agreement Should Include:
- The landlord's name and your name
- The address of the property
- The length of the tenancy and the notice period
- The amount of rent and when this is due, including any payments in advance and whether it includes bills such as council tax and water rates
- Whether the tenancy is for a fixed term or is open ended. If open ended, the tenancy agreement should include details of when the rent can be increased
- Details about the deposit, what it covers and when the tenant will get it back
- Obligations of the tenant, such as keeping the property in good condition and paying bills
- Whether animals are permitted
- An inventory of furniture and other goods provided with the rental property
- The duties of the landlord to ensure the home is kept in good repair
Written tenancy agreements also include implied terms that are not specifically written down. These include the right to live peacefully without nuisance from the landlord. The landlord must also not discriminate against you based on race, sex, sexuality, disability or religion.
Important Tip for Shared Rentals: If you are renting with friends, try to enter separate agreements for each room with the landlord. If all of you rent the whole property, you will be jointly and severally liable, and you may be responsible for other people's rent if they stop paying the landlord.
Renting a Room in Someone's Home
People renting a room in private residences are usually treated by the law as lodgers or licensees, so they do not have the same degree of legal protection as a normal residential tenant.
Key Differences for Lodgers
- The lodger does not usually have a fixed six month period before their agreement can be ended
- The lodger does not have the same protection from eviction as a residential tenant and can be evicted once they have had suitable notice
Although not essential, it is probably best for both parties if a formal agreement is drawn up. These agreements usually stipulate a notice period of one month and contain other useful terms to make sure the arrangement gets off to a proper start. There are various professionally drafted lodgers' agreements available online.
Responsibilities of a Tenant
Included within a tenancy agreement will be the responsibilities and obligations of the tenant. Broadly this covers paying rent and bills and keeping the property and its furnishings in good order.
Important: Failure to adhere to these obligations could result in all or part of a deposit being withheld or even legal action.
Typical Obligations of a Tenant Include:
Financial Obligations
- Pay rent and bills during the terms of the tenancy, including the cost of reconnecting services if they are disconnected due to non-payment
- May include water rates and council tax
- Pay any television license fee for the premises
Property Maintenance
- Keep the property in good condition (but this does not include fair wear and tear, which refers to natural deterioration over time)
- Ensure the property, including garden area, is left in a clean, ordered state when leaving at the end of a tenancy
- Not carry out any alterations or additions without the landlord's permission
- Report any damage to the landlord or letting agent as soon as possible to prevent further damage (you may be liable for damage caused through negligence)
Access and Inspections
- Allow the landlord to enter and inspect the property as long as reasonable notice is given (usually 24 to 48 hours notice) and the visit is at a reasonable hour
Restrictions and Prohibitions
- Not sub-let or bring in other tenants as lodgers
- Not use the property for business purposes, carry out illegal activities or cause a nuisance to neighbours (e.g., by playing loud music, especially at night)
- A ban on pets or other animals may be in place – if so this must be adhered to
- Furnished properties may include an obligation not to bring additional furniture into the property
Administrative Duties
- Forward any correspondence or notices addressed to the landlord to the landlord or their agent
Fees & Deposit
Rental Fees
The government introduced The Tenant Fees Act in 2019 with the aim of making residential letting more affordable for tenants. This bans letting fees paid by tenants on housing in England.
The only payments landlords or letting agents are permitted to charge tenants are:
- Rent
- A refundable tenancy deposit of no more than five weeks' rent where the total annual rent is less than £50,000, or six weeks rent where the total annual rent is £50,000 or above
- A refundable holding deposit of no more than one week's rent
- Payments associated with early termination of a tenancy, when requested by the tenant
- Variation, assignment and novation of a tenancy costs of no more than £50
- Utility payments
- Default fee for late payment of rent or replacing lost key/security devices
Deposit
In securing a tenancy a tenant must hand over to the letting agent or landlord a deposit, typically the value of four to six week's rent. The reason for having a deposit is to cover any damage to the property during the tenancy.
A deposit can be a key area of contention, with some landlords in the past withholding a deposit for no reason or paying it back some months after a tenancy has ended. Arguments over damage can arise.
Best Practice: Carefully go through the inventory of a property with the landlord or agent, pointing out any damage or problems before you move in. Take dated photos of any existing damage.
Important: A deposit is not designed to be set against the last rental payment. Disputes surrounding deposits in recent years have been minimised through the creation of tenancy deposit schemes.
Tenancy Deposit Protection Schemes
Tenancy deposit schemes were created after a change in the law to stop tenants being unfairly deprived of their deposits by their landlords, through the Housing (Tenancy Deposit Schemes) Order 2007.
Legal Requirement: All deposits handed over through an assured shorthold tenancy are now protected by law and landlords are required to place the deposit in either a custodial or insurance tenancy deposit scheme. It is particularly important to check this arrangement when dealing with private landlords.
Custodial Tenancy Deposit Scheme
A custodial tenancy deposit scheme is where a landlord hands over the deposit to the Government appointed custodial deposit organisation The Deposit Protection Service (DPS).
- This service is free to use and is funded by the interest earned on deposits
- Interest is also paid out to the tenant or landlord who receives the deposit back
- The scheme hands back the deposit if the tenant and landlord agree how it should be apportioned
- It also has a disputes service if the tenant and landlord cannot agree
Insurance-based Deposit Scheme
An insurance-based deposit scheme is where a landlord pays a fee into the scheme, which will insure against the landlord unlawfully retaining the deposit at the end of the tenancy.
- It also has a disputes service
- Once a deposit is paid back, the landlord informs the scheme that protection is no longer needed
- The fee is designed to be absorbed as part of the landlords costs, but there is nothing to stop a landlord passing on the fee to the tenant
There are two insurance-based schemes:
- MyDeposits – sponsored by the National Landlords Association and administered by Hamilton Fraser Insurance Services
- Tenancy Deposit Scheme – only open to landlords and letting agents who belong to a professional body which requires members to arrange client money protection insurance
Contents Insurance
The landlord will be responsible for insuring the property, including buildings insurance and for furniture and other items that do not belong to the tenant. However, it is the tenant's responsibility to insure their own possessions.
Why You Need Contents Insurance
It is advisable to take out contents insurance to protect you against the unexpected. Without contents insurance your damaged possessions cannot be replaced if the home being rented is affected by fire or flooding.
There are a variety of home contents plans available, covering everyday items with options to include specific items such as jewellery or computing equipment.
Troubleshooting & Dealing with Problems
Most arrangements between landlords, agents and tenants run smoothly, but things can go wrong. Here's how to deal with common problems:
Deposit Disputes
Any tenancy dispute relating to deposit issues is now dealt with through tenancy deposit schemes. Disputes can arise through disagreement about damage to property and whether it is the tenant's responsibility to pay for damage or the item or part of the building was already damaged.
Prevention: Carry out an inventory check with a landlord or agent and alert them to any problems when you move in. Take dated photos of any damage.
Repairs
Another common dispute is where a landlord does not undertake repairs.
What to do:
- Ensure that the contract includes a stipulation on the landlord to carry out repairs
- Take photos as evidence that work needs to be carried out
- Contact the landlord and letting agent in writing
- If they do not respond or ignore your request, seek redress and dispute resolution from one of the trade bodies or through The Property Ombudsman (for complaints involving a letting agent)
Excessive Fees
Agencies are not allowed to charge fees for administrative costs and checking references and credit history of a tenant. The Tenants Fees Act places restrictions on landlords and letting agents on the fees they can put in place.
Ending the Tenancy
If the tenancy is for a fixed term (usually six months) it will end automatically.
Otherwise once the initial period (again usually six months) is over, the tenancy automatically continues until either the landlord or the tenant serve notice to quit.
The service of notices can be complex and if there is any doubt it may be best to consult a solicitor to draw up and serve it. Usually it has to be in writing with the tenant serving one month's notice and the landlord two months, but check the tenancy agreement to be sure of the process and the method.
Excessive Rent
Assured shorthold tenancies are at market rent. If you discover you are paying too much rent you can refer the arrangement to a rent assessment committee, who will compare the rent you are paying to the market as a whole. Rent assessment committees are part of the Residential Tribunal Service.
Where to Go for Help
The Property Ombudsman
If you are renting a property through a letting agent which is a member of Propertymark or the National Approved Letting Scheme, there is the option of contacting The Property Ombudsman.
Note: There is little recourse other than legal action through the small claims court if the dispute involves a letting agent that is not registered with this ombudsman scheme or you are dealing directly with a landlord.
The Property Ombudsman will offer mediation to find a settlement and can award compensation to a tenant who has been disadvantaged through maladministration or unfair treatment via a letting agent.
Citizens Advice Bureau (CAB)
The Citizens Advice Bureau can offer advice on:
- Where to get support, such as The Property Ombudsman
- Your legal rights as a tenant
- Acting as your advocate and helping in mediating a dispute
The CAB has long campaigned for greater regulation of letting agents and the private rental property sector. One recent online survey by CAB found that 73% of tenants were dissatisfied with the service provided by their letting agent.
Residential Property Tribunal Service
The Residential Property Tribunal Service is the umbrella organisation for the five regional offices called Rent Assessment Panels which provide an independent, fair and accessible tribunal service in England for settling disputes involving private rented and leasehold property.
Houses in Multiple Occupation (HMOs)
If the property is 3 or more storeys and occupied by 5 or more people it will normally come under the mandatory licensing regime. Other HMOs may be licensed but that depends on the local authority.
If the property requires a licence:
- The landlord and their associates must satisfy the requirement to be a fit and proper person
- The property must be up to an acceptable standard
HMOs are regulated by your local authority. If you have any concerns over the state of the property, the behaviour of your landlord, or whether your property is correctly licensed, contact your local authority's housing team.
Useful Contacts
Free advice on housing, legal, and money matters
Adviceline (England): 0800 144 8848
Advicelink (Wales): 0800 702 2020
www.citizensadvice.org.ukIndependent redress scheme for estate agents and letting agents
Tel: 01722 333306
www.tpos.co.ukProfessional body for estate agents and letting agents
Tel: 01926 496800
www.propertymark.co.ukLetting agent accreditation scheme (formerly National Approved Letting Scheme)
Tel: 01242 581712
www.safeagents.co.ukSupport and advice for landlords
Tel: 0300 1316400
www.nrla.org.ukIndependent tribunal for settling rental disputes
Tel: 0207 446 7700
www.gov.uk/property-tribunalGovernment-approved tenancy deposit protection
www.depositprotection.comProperty search, rental guides, and market information
www.home.co.uk