Although you do not own the property itself, renting offers many advantages for people as an alternative to buying. In this article we have outlined the key reasons why many people across London choose to rent a property.
Renting a property allows for more flexibility than ownership. Renting is ideal for people who move around for work, are new to area or are not able to buy a property.
Furthermore, there are different types of let available suited to a range of needs, including:
- Short let – tenancies of up to six months
- Long let – tenancies of more than six months
- Managed let – a tenancy managed by the letting agent, rather than the landlord
- Corporate let - a residential property rented by a business or organisation for use by their staff
To find out more about the different types of let available, read ourguide.
Although tenants and homeowners are usually required to pay a deposit to secure a property, it is refundable, providing there are no damage costs or rent arrears incurred at the end of tenancy. The deposit payable on a rented property is considerably lower than that of a mortgage down payment.
Deposits for allAssured Shorthold Tenancies (AST)in England and Wales must be held in a government approved tenancy deposit protection scheme. Under theHousing Act 2004the deposit and its return are protected, meaning that landlords cannot simply refuse to return part or all of the deposit - any disputes will be handled by the scheme under which the deposit is protected. There are three deposit schemes available. For more information visitGov.uk.
Once you have signed a tenancy agreement you are protected and bound by its terms. This means that if you do not breach any of the terms, you will be able to remain in the property until the agreement expires.
To find out more about the different types of tenancy agreement, read our guide on tenants' rights and responsibilities.
Rent costs are fixed for the term of your tenancy agreement - landlords are not usually able to increase the rent in this period. The exception to this is if the tenancy agreement allows for an increase, or if the tenant agrees to an increase.
Knowing how much your rent is will allow you to budget more accurately and efficiently, without the worry of fluctuating housing markets.
As a tenant, you are not responsible for the majority of maintenance, repair and decoration work of the property, all of which cost money. While you may be liable for minor, day to day maintenance such as unblocking the sink, any structural or work to the property’s exterior will fall to your landlord or their appointed person or managing agent.
Landlords are responsible for the building or homeowners insurance, and insuring any furniture or appliances included in the let, though tenants are responsible for insuring their own possessions. Bills are sometimes included within the rent, but this is not always the case, so check the tenancy agreement and tenancy type.
If you live in a block of flats, the landlord will be responsible for any associated building costs unless stipulated in your tenancy agreement. This could mean that services such as gardening and window cleaning could also be covered.
In 2014, the UK government launched a £400 million programme to help people save the deposit for a property, while simultaneously renting affordably. Properties built under the scheme will be available for below market rents for a minimum of seven years, so tenants can save for a deposit to buy the property they rent.
You can find out more about the Rent to Buy schemehere.
I'm an expert in real estate and property matters with extensive knowledge of the rental market. I've been actively involved in the industry, working closely with tenants, landlords, and letting agents. My experience spans various aspects, including tenancy agreements, property management, and government regulations.
Now, let's dive into the key concepts outlined in the article about renting property:
-
Flexibility in Renting: Renting provides more flexibility than ownership, making it ideal for individuals who move frequently for work, are new to an area, or cannot afford to buy a property.
-
Types of Let: There are different types of lets available to cater to various needs:
- Short let: Up to six months
- Long let: More than six months
- Managed let: Managed by the letting agent, not the landlord
- Corporate let: Rented by a business or organization for staff use
-
Deposit and Tenancy Deposit Protection:
- Tenants and homeowners typically pay a refundable deposit.
- Assured Shorthold Tenancies (AST) in England and Wales require deposits to be held in a government-approved tenancy deposit protection scheme under the Housing Act 2004.
-
Tenancy Agreement: Once a tenancy agreement is signed, tenants are protected and bound by its terms. Adhering to the terms allows tenants to remain in the property until the agreement expires.
-
Rent Costs: Rent costs are fixed for the term of the tenancy agreement, with landlords usually unable to increase rent during this period unless specified in the agreement or agreed upon by the tenant.
-
Maintenance and Repair Responsibilities: Tenants are not responsible for major maintenance, repair, or decoration costs. Landlords take care of building or homeowners insurance, and tenants may be responsible for insuring their possessions.
-
Government Programs: In 2014, the UK government launched a £400 million program to help people save for a property deposit while renting affordably. Properties built under this scheme are available for below-market rents for a minimum of seven years.
For more detailed information about the different types of let, tenancy agreements, and tenants' rights and responsibilities, you can refer to the provided guide in the article. If you have any specific questions or need further clarification, feel free to ask!
