A Tenant's guide to renting

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> I've never rented before - Please explain!

The two main routes to renting are:

1. Through a letting agency who manages property on behalf of landlords.
2. Through a private landlord who manages their own property.

*This is slightly complicated by the fact that some landlords use letting agencies to help them find a tenant, but then manage the tenancy themselves. The main differences in the letting experience arise through who is managing the property.

Letting Agencies
Letting agencies sell themselves to potential tenants by saying that they will be able to "do all the legwork" of looking for a property because they represent a large number of landlords and have many properties on their books (obviously this does depend on the size of the agency). They also present themselves as professionals who will deal with all aspects of the tenancy promptly and efficiently - they suggest they can be better at these things than a single private landlord.

It is generally much more expensive to rent through a letting agency because they tent to charge "fees" for just about everything - credit checks, drawing up the contract, inventory checks, admin fees etc. Some letting agencies also regularly inspect the properties they manage, as often as every six weeks.

In conclusion, renting through a letting agent who manages the property is very much bound up with rules and regulations. This is the reality of a big commercial company running tenancies - they need to make absolutely sure that they make as much money as possible, and so introduce as many rules as possible to minimise any losses that may occur. The regulations mean that both the agency and the tenant generally know exactly where they stand in any given situation. But for the tenant, the rules can sometimes be unnecessarily restrictive and inflexible - and often expensive.

Private Landlords
Private landlords generally sit somewhere on a scale going from "professional landlords" at one end, who own a number of rental properties and whose business is letting out property, to "reluctant landlords" at the other end, who own a single rental property and are being forced to rent it out for any number of reasons - including not being able to sell the house and having to move away (as you can imagine, the credit crunch has seen a rise in this type of landlord!)

Private landlords can be more flexible on the rules of your tenancy, so if you have a pets, children, or other special circumstances then often private landlord can be more accommodating than letting agencies with strict rules. There are often less fees involved too, as many landlords are satisfied with looking through bank statements or having a quick chat with your employer to confirm your income rather than running a credit check. They also take references from previous landlords very seriously, and a good reference can be enough to secure you a tenancy. As landlords generally have fewer properties to manage than a letting agency, you can foster a real relationship with them which can make things easier throughout the tenancy, and allow a certain degree of "give and take".

Due to the scale on which landlord can sit, some "reluctant landlords" can be very unfamiliar with current legislation, and not take their responsibilities as a landlord seriously, causing problems for the tenant when things go wrong.

In conclusion, renting through a private landlord can be a more liberating experience than using a letting agency, with less petty rules and regulations and more room for flexibility. However not all landlords are created equal, and the ones who do not take the duties of being a landlord seriously can cause a major headache for their tenants.

The reality is that like most things in life, there are good and bad letting agencies and good and bad private landlords. The rest of this guide will try and help you identify the good from the bad.