Step 1: Ensure your finances are prepared
It is crucial to be financially prepared as there are various costs that need to be taken into account. Make sure you are fully equipped!
When engaging in the rental process, there are expenses beyond the regular weekly or monthly rent that must be factored into your budget.
In 2020, the Tenant Fees Act 2019 came into effect, eliminating many fees that were previously paid by tenants. However, there are still some initial costs associated with renting a property. These expenses typically include:
- Holding Deposit (equivalent to one week's rent)
- Tenancy Security Deposit (equal to five weeks' rent if the annual rent is below £50,000, or six weeks' rent if it exceeds this amount) – unless you opt for a deposit-free rental option
- First month's rent
Key enquiries to make prior to commencing your property search
Step 2: Finding the right property for you
Choosing a trustworthy landlord or letting agent is crucial as a tenant, considering that renting a home is a significant and long-term decision. At Charles Knight all of our employees are trained with the Association of Residential Letting Agents (ARLA PropertyMark) ensuring that our agents adhere to strict standards of professional and ethical conduct.
To determine your budget, most agents will have an income criteria as part of their referencing process. As a rough guideline, multiplying the monthly rent by 30 can give you an approximate idea of the annual salary required for affordability. In cases where you intend to share a property with another person, which may initially seem beyond your budget, it might actually be more attainable.
Regarding the desired move-in date, properties on the rental market typically become available for viewing around six to eight weeks prior to their readiness. It's advisable to commence your search as soon as you know when you need to move, up to eight weeks in advance. During this time, most agents will register you as an applicant and keep you informed about new properties. You can initiate your property search online, over the phone, or in person at the branch.
Once you've discussed your requirements and the agent has narrowed down the options, they should arrange a viewing appointment for you, either in person or via a video tour.
When it comes to finding the right rental property, Charles Knight offers convenient options for your search. Our property search feature is the ideal starting point, allowing you to filter and match properties according to your specific needs. Utilise our rental search tool, adjust the filters and advanced features to narrow down your search and find exactly what you're looking for in your preferred location.
Step 3: Start viewing the properties you're interested in
In the fast-paced rental market, it's crucial to act swiftly when you come across the perfect property with an agent. Make arrangements for a viewing, or even multiple viewings, as soon as possible, and try to schedule them closely together. This approach will facilitate easier decision-making.
To ensure the property meets your requirements, ask the right questions during the viewing process. Consider the following aspects:
Space: Does the property fulfil your needs in terms of size? Will your furniture fit, or does it come with the necessary furnishings? Evaluate the availability of storage space.
Parking: Is there a designated parking space or garage? If so, is there an additional cost associated with it? Do you require a permit for parking?
Decor: Keep in mind that repainting may not be allowed without permission. Assess whether the current decor aligns with your preferences. Also, inquire about the possibility of putting up pictures or mirrors—are there existing hooks for this purpose?
Essential amenities: Ask about mobile phone reception, availability of cable/satellite dish, broadband connectivity, and the number of electrical sockets in the property.
Tenancy management: Clarify who will be responsible for managing the tenancy once you move in—is it the agent or the landlord?
Property condition: If you are interested in renting the property, enquire about any pending or planned works before occupancy. If there are specific improvements or modifications you desire before moving in, ask if they can be accommodated. This information will assist you in making your final decision.
Charles Knight's top tip for securing a property is to place a holding deposit equivalent to one week's rent. This deposit demonstrates your intention and good faith towards renting the property. You can consult the website and the local branch page for a comprehensive list of potential charges and terms. Before moving in, you will likely need to pay the first month's rent and a deposit, so ensure that you have sufficient funds available for this purpose
Step 4: Tenancy Application
When applying for a rental property, you will be required to provide references to your prospective landlord or agent to verify your details and background. Most agents prefer online submission of reference information, so ensure that you provide ample contact details to expedite the process. It's also a good idea to inform your references in advance, so they are aware they may be contacted.
The typical referencing criteria include:
Three years' address history
Landlord details for any properties rented in the past three years
Confirmation of earnings, annually, typically equivalent to 30 times the monthly rental fee
For retirees, joint pension income, annually, should also equal 30 times the monthly rental fee
No adverse credit history, such as county court judgments, bankruptcy orders, or similar records
For self-employed individuals, either an accountant's reference or evidence of the past three years' tax returns may be required.
The tenancy agreement, the deposit, and preparations for moving in
Congratulations! You've passed the references and reached the "subject to contract" stage, which means you're moving in! What's next?
A tenancy agreement is a legally binding document that outlines the terms of the tenancy, ensuring that both the tenant and landlord understand their rights and responsibilities. It's crucial to read the agreement as soon as possible to fully comprehend the terms and your obligations. Once all parties agree, sign the agreement, and pay the necessary move-in funds, you are legally bound by the terms until the specified end date.
Once the deposit, first month's rent, and tenancy agreement are fully paid and signed, the property is secured, and the keys can be handed over to you.
A tenancy deposit is held by the landlord to safeguard against unpaid rent, property damage, or breaches of the tenancy agreement. In England, from June 1st, 2019, landlords are limited to a maximum of five weeks' deposit for new and renewed tenancies (or six weeks if the annual rent is £50,000 or more). Your tenancy agreement will clearly state the purpose of the deposit and how it will be handled according to the regulations of the Tenancy Deposit Scheme. Your agent or landlord should inform you of the government-approved scheme being used and provide confirmation of the deposit registration within 30 days of payment.
Some agents may offer a Deposit Alternative or Deposit Free option. A Deposit Alternative allows you to pay a fee, typically one week's rent plus VAT, instead of the traditional security deposit (which is usually five weeks' rent, or six weeks for higher annual rents). This fee grants you membership in a deposit-free renting scheme, significantly reducing upfront costs. It's important to note that this fee is non-refundable and not considered a deposit. Any outstanding costs or damages will still be payable by the tenant(s) at the end of the tenancy. Not all agents offer this option, but if you're interested, it's worth inquiring about their current offerings.
Step 5: Staying safe and protected in your rental property
Prioritising safety
A responsible agent or landlord, especially those who are voluntary members of accreditation schemes like ARLA or Safeagent, will stay updated with the latest legislation in the lettings industry. They understand the importance of ensuring tenant safety and will inform landlords about their legal responsibilities in this regard. This includes maintaining the property and its furnished contents in compliance with safety standards. Typically, they conduct annual safety checks and may contact you during your tenancy to arrange for approved contractors to inspect the property.
Insurance
Tenants often overlook the need for insurance, but it is important for protecting your belongings and liability. Each tenant's possessions and responsibilities are equally significant, so considering insurance is a wise decision. Your agent can provide you with information about different types of insurance available and assist you in making an informed choice.
Step 6: Moving in
Finalising the move-in process
On the proposed move-in day, there are a few essential steps to complete before receiving the keys:
Sign the Tenancy Agreement: All tenants or guarantors should sign the agreement. Some branches offer electronic signing, so check with the local office for the process.
Clear the move-in funds: Ensure that all necessary payments have been made and cleared, including the first month's rent and the deposit.
Bring required documents: Bring any requested documents, such as photo ID, Right to Rent documents (England only), proof of recent residency, and confirmation of insurance.
Information provided by the agent:
Your agent will provide you with a copy of the signed Tenancy Agreement for your records. They will also provide contact details for future correspondence, which may be either the agent or the landlord. Additionally, you should receive copies of the Gas Safety Certificate (if applicable), Energy Performance Certificate (EPC), How to Rent Guide/Rent Smart Wales leaflet (minimum requirement), and starting from 1st July 2020 (England only), an Electrical Safety Report.
Setting up future rent payments:
Rent payments are typically made monthly via standing order. Your agent will provide you with the necessary forms or bank details to set up the payment before the next rent due date. If a Payment Reference Number is provided, make sure to include it in your payment for easy identification.
Key collection:
You can collect your keys either at the local branch or during a check-in appointment with the landlord or inventory clerk. The details of the key collection process will be discussed with you beforehand by your local office.
The Inventory:
The inventory is a detailed list documenting the property's contents and condition at the start of the tenancy. It is crucial to carefully review and agree upon the accuracy of the inventory to minimise disputes at the end of the tenancy. Take note of any discrepancies or damages. The inventory will be used during the move-out process to assess any changes or charges, accounting for fair wear and tear.
Utility and Council Tax responsibilities:
Ensure that your name is on the bills for Council Tax, water, gas, electricity, and TV licence from the day you move in until you move out (unless your rent includes bills). Contact each supplier to update the information, or inquire if the local office offers assistance with this process. It remains your responsibility, even if there is support available.Insurance reminder:
Consider obtaining insurance as a tenant to protect your belongings and liability. Your agent can provide information about different insurance options to help you make an informed decision.
Charles Knight Top Tip for post-move-in:
Organise a file for your rental property, keeping the signed tenancy agreement, inventory, and contact numbers in one place for easy reference. Save your agent/landlord's contact information in your phone and inquire if they offer a maintenance reporting service through a phone bookmark feature.
Step 7: Living in your new property.
Property maintenance problems/questions:
If your property is managed by the agent, they will provide you with contact information for reporting maintenance issues during your tenancy. They will guide you on whether action is needed from yourself or the landlord, depending on the nature of the issue (long-term fault or wear-and-tear). Consult your Tenancy Agreement and Tenants Handbook for information on responsibilities and response times. Some offices may have an online maintenance reporting system, and your local office will explain how to access it.
If your property is managed by the landlord, you will be provided with their name and contact details. You should directly contact the landlord with any maintenance issues.
Rent payment:
Your rent is typically due monthly, weekly, or quarterly, as specified in the Tenancy Agreement. The agreement will also outline when and how the rent should be paid, including bank details and reference numbers. As the Tenancy Agreement is a legally binding contract, it's crucial to pay the rent on time. If you anticipate a delay in payment, it's best to inform your landlord or agent promptly to avoid any potential issues.
Property inspections:
Properties managed by the agent usually undergo regular visits by staff members to ensure the property is well-maintained on behalf of the landlord. These inspections typically occur a few times a year and provide an opportunity for tenants to raise any concerns. If the landlord manages the property themselves, they may also conduct periodic visits. In both cases, proper written notice should be provided by the landlord or agent before any visits occur.
Charles Knight Top Tip:
If something requires repair or breaks down before or after a visit, don't wait for the next visit to inform your agent. Contact them immediately to report the issue.
End of tenancy:
As your fixed-term tenancy contract approaches its end, the agent or landlord will contact you to inquire about your intentions—whether you want to extend your stay or move out. It's important to communicate your decision to them promptly so that necessary actions can be taken.
If you plan to stay:
Notify the agent or landlord at least one month before the end of the fixed term, and providing more notice if possible is appreciated. When moving out, ensure the property is left clean and tidy, and return all items to their original positions. If you'd like assistance with cleaning, the agent can recommend a cleaner, and you can pay them directly for their services if desired.
Step 8: Moving out of the property.
To ensure a smooth process for moving out and getting your deposit back, follow these steps:
Notify the agent or landlord at least one month before the end of the fixed term or give two months' notice if you are on a rolling/periodic tenancy.
If the property is managed by the agent, they will arrange a check-out appointment with you to ensure the property is left in an appropriate condition according to deposit legislation. You will hand back the keys at this time. If the landlord manages the property, you will need to contact them directly to arrange a check-out and key handover.
To get your deposit back in full (fair wear and tear excepted), make sure the property is left in good condition. The agent or landlord will provide you with specific requirements and tips in writing. Follow them to make the process easier.
If there are no deductions or disputes and all the necessary forms are filled out correctly by both you and the landlord, your deposit should be returned within ten days, as specified in the tenancy agreement.
Charles Knight Top Tip:
Clean the property thoroughly, including carpets, windows, walls, and furniture. Consider hiring a professional cleaner if needed or more convenient for you.
Tidy the garden and remove any rubbish.
Return all keys to the agent or landlord.
Remove all your belongings from the property.
Notify energy suppliers, the water company, and the council tax department about your move-out and settle any final bills.