Renting - What's the norm, what's required?

curtis122

We are hopefully going to be able to start looking for a rental very soon. The last time I rented was over 20 years ago and from what I remember it was a very easy process, some pay slips and that was it.

What's the process now for applying for a rental? What's the norm that most need now as I read on one they wanted so much info and they stated people must earn at least £41000 and it was not a very expensive rental, which made me also think how does your average worker even rent given they are saying you need to earn that much to even apply.

I noticed also a few used a separate company to do the checks, which if they are anything like the ones recruitment companies use, I imagine would be painful as they normal just do a tick box exercise where every box needs to be ticked exactly with what they require and how they require it, anything outside that, its a fail.

Brie

Credit checks are normal.  So is having 100 people wanting the same place so the LL often has their pick.  

Actual salary required will depend on where you're looking.  And what you're looking for.  

subjecttocontract

Many landlords now require an applicant to qualify for rent guarantee insurance which might  not have been around 20+ years ago. My agents usually ask a few basic questions to check the tenant will pass the criteria for RGI first, then if ok, the people offering the insurance run the actual checks.

Albermarle

A couple of years in some areas as soon as a rental was available there was a queue of people outside.
Sometimes you could view 20 properties before even you got to the stage of credit checks etc.
It seems to have calmed down since then, partly because rents went up a lot, but can still be a bit of a scramble for anything decent in some areas.

gwynlas

A lot depends on where in the country you are renting as to price conditions and whether landlors self managing or using agency.

You can get useful information from listings.

All should do credit checks, and take up refernces, if you have no recent history of renting they might request tha you offer six months advance rental.

If they do not offer a pre contract inventory write up your own with time stamped photographs.

FreeBear

gwynlas said: All should do credit checks, and take up refernces, if you have no recent history of renting they might request tha you offer six months advance rental.

And they should also be checking that you are either a UK citizen or have the right to stay in this country.

owls1867

curtis122 said:

We are hopefully going to be able to start looking for a rental very soon. The last time I rented was over 20 years ago and from what I remember it was a very easy process, some pay slips and that was it.

What's the process now for applying for a rental? What's the norm that most need now as I read on one they wanted so much info and they stated people must earn at least £41000 and it was not a very expensive rental, which made me also think how does your average worker even rent given they are saying you need to earn that much to even apply.

I noticed also a few used a separate company to do the checks, which if they are anything like the ones recruitment companies use, I imagine would be painful as they normal just do a tick box exercise where every box needs to be ticked exactly with what they require and how they require it, anything outside that, its a fail.

Credit Check / Employment Check / Previous Landlord Reference (but not applicable in your case) and then Right to Rent to prove your immigration status (which if you are a British or Irish Citizen is just providing your passport, but slightly different for foreign nationals). 

The affordability criteria is usually 30x the monthly rent - but this can vary from referencing agency depending on who they use. So if the monthly rent is £1000 per month, they would want the household to earn £30k to pass.  

The deposit is capped at 5 weeks rent, so make sure they don't ask you for anymore than that. 

Once referencing have been passed - they will ask you to pay a holding deposit, usually 1 weeks worth of rent to take it off the market. Tenancy agreements are then drawn up ready to sign, dates are agreed and the remaining monies are then paid before you move in.

Tenancy agreements are usually for 6 or 12 months fixed and rents cannot be increased for at least 12 months. 

My best tip is to be as flexible as you can be for move in - landlords want someone who can move in straight away to avoid any large void periods (££££) and absolutely make sure you get your viewing as soon as possible.
Not all, but a lot of agencies have a first come, first served rule that as soon as referencing is passed and satisfactory, you're then expected to pay your holding deposit so not to miss out. So if are viewings are only taking place at say 2.30 on a Tuesday afternoon - then make sure you can make it because its highly likely it will probably not make the second round of viewings such is the demand at the minute. 

Albermarle

owls1867 said:

curtis122 said:

We are hopefully going to be able to start looking for a rental very soon. The last time I rented was over 20 years ago and from what I remember it was a very easy process, some pay slips and that was it.

What's the process now for applying for a rental? What's the norm that most need now as I read on one they wanted so much info and they stated people must earn at least £41000 and it was not a very expensive rental, which made me also think how does your average worker even rent given they are saying you need to earn that much to even apply.

I noticed also a few used a separate company to do the checks, which if they are anything like the ones recruitment companies use, I imagine would be painful as they normal just do a tick box exercise where every box needs to be ticked exactly with what they require and how they require it, anything outside that, its a fail.

Credit Check / Employment Check / Previous Landlord Reference (but not applicable in your case) and then Right to Rent to prove your immigration status (which if you are a British or Irish Citizen is just providing your passport, but slightly different for foreign nationals). 

The affordability criteria is usually 30x the monthly rent - but this can vary from referencing agency depending on who they use. So if the monthly rent is £1000 per month, they would want the household to earn £30k to pass.  

The deposit is capped at 5 weeks rent, so make sure they don't ask you for anymore than that. 

Once referencing have been passed - they will ask you to pay a holding deposit, usually 1 weeks worth of rent to take it off the market. Tenancy agreements are then drawn up ready to sign, dates are agreed and the remaining monies are then paid before you move in.

Tenancy agreements are usually for 6 or 12 months fixed and rents cannot be increased for at least 12 months. 

My best tip is to be as flexible as you can be for move in - landlords want someone who can move in straight away to avoid any large void periods (££££) and absolutely make sure you get your viewing as soon as possible.
Not all, but a lot of agencies have a first come, first served rule that as soon as referencing is passed and satisfactory, you're then expected to pay your holding deposit so not to miss out. So if are viewings are only taking place at say 2.30 on a Tuesday afternoon - then make sure you can make it because its highly likely it will probably not make the second round of viewings such is the demand at the minute. 

In areas where there is high demand, you may even have to offer to 6 or even 12 months rent in advance to secure the property.
This might also be the case if your credit checks are less than perfect, although sometimes they will accept a guarantor. 

mta999

although once the RRB becomes law in the autumn that will not be possible

curtis122

I was under the impression you pay the holding fee first then the references get done as many of the EA say, if your references are positive you get it back or its off your first months rent.

We are renting while looking for our new home, I've read some contracts do not have break clauses which may be an issue for us if we find something within a matter of months of moving in but given what we are looking for it may take a lot longer and we could be there a year or more, its a complete unknown. 

We will be asking how long the initial contract is for, should we be asking "Does that include a break clause?" Is that a question people ask?

I don't want to think that if we ask, it gives the impression we want to maybe get out sooner when that's not the case necessarily, might be but might not be. To be honest even if we were not looking for our new home I would still want a break clause as you never know what life may throw at you and to be trapped in a long contract would be terrible.

I know this may be all meaningless if the new rental laws come in as contracts will be periodic which will be ideal then for us. Does anyone know if these new laws come in, if existing contracts automatically change or will it change at the end of the contract?

owls1867

curtis122 said:

I was under the impression you pay the holding fee first then the references get done as many of the EA say, if your references are positive you get it back or its off your first months rent.

We are renting while looking for our new home, I've read some contracts do not have break clauses which may be an issue for us if we find something within a matter of months of moving in but given what we are looking for it may take a lot longer and we could be there a year or more, its a complete unknown. 

We will be asking how long the initial contract is for, should we be asking "Does that include a break clause?" Is that a question people ask?

I don't want to think that if we ask, it gives the impression we want to maybe get out sooner when that's not the case necessarily, might be but might not be. To be honest even if we were not looking for our new home I would still want a break clause as you never know what life may throw at you and to be trapped in a long contract would be terrible.

I know this may be all meaningless if the new rental laws come in as contracts will be periodic which will be ideal then for us. Does anyone know if these new laws come in, if existing contracts automatically change or will it change at the end of the contract?

Agencies can work the way you have suggested - but they cannot hold more than one holding deposit at any one time as all application fees (and many other types of fees) are now band. If you pull out of the application process though, or knowingly provide false information then the agency can keep it and reject your application. However, if the landlord pulls out then you will get it back. 

But if you're a landlord, you take a holding deposit from somebody, house comes off the market and then they fail referencing after waiting a week for it to come back - it would mean a good chunk of time / interest wasted and a possible longer void period for them. But there is genuinely no hard or fast rule how it would work as every letting agent will do things differently. 

You are right in saying that the holding deposit will come off the total deposit owed however. 

Same with break clauses - you can ask for one, but they are getting less common for landlords to agree (unless they want one as well). The only way I could see it being realistic is if you sign up for a longer tenancy than normal (say 24 months) as that would be a good get out for a landlord if you aren't a good tenant and they need to evict you (which I am sure is not true) or if they indeed think their own circumstances might change. Just bear in mind also that a lot of agents will not allow the tenancy to go periodic once the first initial fixed term elapses and you will expected to sign up to another fixed term - but again, it will all vary from agent to agent and when this RRB comes into affect.  

If you do sign up to a 6 month contract but want to leave after 3 months lets say- then you will be still be expected to continue to pay for the property and most likely pay the re-let fee for the agency to re-market. Only when a tenant is found will the agency release you from your contract as the landlord shouldn't have to suffer any financial loss because of your circumstances changing.  

But like you say, this whole mantra and way of doing things will all change come its commencement in 2026 when the bill becomes law after passing Royal Assent in the Autumn.