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Renting Guide

Establishing Your Budget and Finances 

Understanding what your budget is before you start your search will give you a realistic idea of the size, location and type of property you can afford and make the search process much more efficient. When calculating your budget, there are a number of factors to consider:

Offer Stage 

When you have found right property you will need to secure it through making an ‘offer’.

You will be required to pay a holding deposit, which is usually the equivalent of one week's rent and which will be offset against the first rental payment if the tenancy goes ahead. You need to carefully read the terms of the holding deposit receipt before signing it. In some circumstances, you may be refunded all or part of this money if the tenancy does not go ahead, in some circumstances you will not.

Referencing for individual tenant or guarantor - Reference checks are carried out on prospective tenants to confirm that they have previously rented without any major issues. Credit checks are carried out to ensure that prospective tenants can afford the monthly rent and have no serious adverse credit problems. You may be required to provide a guarantor for the tenancy, who will also need to undergo the referencing process. At Carter & Reeves we advise our landlords to use an independent specialist referencing company for this purpose. 

Offer accepted stage 

If your offer has been accepted (subject to contract and satisfactory references) then before the tenancy starts you will need to make the following payments at this stage of the process:

Rent- usually equivalent to one month’s rent, but as set out in the tenancy agreement. The holding deposit will be deducted from the first payment. Further rent payments will be collected via direct debit from your nominated UK bank account.

Security deposit – Under the Tenant Fee Act 2019, if your tenancy is an AST then there is a limit to the amount of deposit you can be required to pay. For tenancies with a rent up to £50,000 per annum this is no more than the equivalent of five weeks' rent. For tenancies over £50,000 per annum this will be no more than the equivalent of six weeks' rent. There is no restriction for tenancies which are not ASTs. This deposit is assurance to the landlord that when you move out, their rented property will be left in a good condition. If the property is not left in a state fit for purpose your landlord or letting agent may deduct your deposit if there is any damage to the rental property. For ASTs this deposit will usually be held by a government Deposit Protection Scheme (DPS).

How to Calculate Your Rent

To help calculate your monthly outgoings, have a look at this helpful budget planner:  https://www.moneyadviceservice.org.uk/en/tools/budget-planner 

Household Bills

If you are unsure about bill costs once you have decided on a property, ask your letting agent, who may be able to provide you with an estimate of utility bills based on the current tenants utility costs.

You can also find out the council tax band and associated costs of your property by entering the postcode into governments council tax checker:  http://www.mycounciltax.org.uk/content/index

Typical household bills may include:

  • Council tax
  • Energy – gas and/or electricity
  • Water
  • Telephone
  • Broadband
  • TV licence
  • Digital or satellite TV
  • Insurance for your personal possessions

It is important to always keep on top of your monthly bills, to maintain a good credit rating. 

Tenancy application and referencing

A letting agent will need to verify who you are in order to proceed with your tenancy application. This means bringing in photographic ID and examples of recent utility bills. While you're in the office, you'll be asked to sign a tenancy application form, and pay the outstanding moving in monies. An independent third party will pursue your references - following up with previous landlords and your employer - as well as undertaking a credit check.

Securing a rental property

You'll need to conduct viewings in person, to establish whether you like a property. Ask the landlord, tenant or letting agent (whoever is conducting the viewing) about commuting times and rail ticket prices, find out about any parking restrictions. It's these questions that will prepare you for the additional financial commitments attached to living in the property you are viewing. It's also wise to visit the property and the area more than once and at different times of the day - during rush hour/the school run, after dark and at the weekend. Once you have found a property you like, contact your letting agent to make an offer.

Signing the tenancy agreement

When your offer on a rental property has been accepted, you'll be required to sign the Tenancy Agreement and pay the first months rental and a security deposit. If you are renting a property from us that is professionally managed, your deposit will be secured with a government backed  Deposit Protection Scheme (DPS). If there is anything in your agreement that you don't understand - just ask. We want every tenant to move in knowing what is expected of them, of their landlords and of us, if we are managing the property.

Moving in

Once all the fees and deposit have cleared and the Tenancy Agreement is signed, the keys to your new home will be available for collection. Don't forget to notify utility providers, the local council and the electoral register of your new details.

Collecting the rent

Your rent will normally be collected on a monthly basis by standing order; you will be provided with a standing order form when you sign your Tenancy Agreement. The rent will be collected automatically from your chosen bank account.