Reducing rental costs
If you are a tenant of a house or flat, you may be one of the many who are currently struggling to pay their rent.
New research, the Skipton Group Home Affordability Index, carried out for Skipton Group by Oxford Economics, reveals that only one in eight renters can afford to buy in the area where they live. High rents, bills and current house prices mean that it is more difficult than ever for renters to purchase their first home.
Recent Financial Conduct Authority statistics show that 7% of tenants have been late with a rent payment, whereas 26% have been late with other bills.
It may seem impossible to avoid rent increases, but here are some tips for reducing them.
15 top tips for keeping your rental costs down
- Do your research. Regularly check local area prices (using Zoopla, for example) to ensure you are not paying over the odds and look at more than one property.
- If you can, be flexible. The summer months of May to September are busier times for renting, consequently there’s more choice between October and April.
- When looking at a property, ask the landlord whether they have a mortgage and if it’s fixed rate. With no mortgage or fixed rate, there is less reason for the landlord to put up the rent. Check for any minor faults with the property such as stains, dents, rails coming away from walls etc. You can use this to negotiate a reduction, as well as offering to do some of the work. (See point 13)
- Pay ahead: Last year, Camilla Collins moved from London to Wiltshire. The property was advertised at £2,000 a month. The landlord agreed to her offer of paying the full year up front at £1,800 per month. This may be an option for some.
- Ask if there will be a guaranteed fixed rent for a certain period of time. In return, you can offer a guaranteed minimum term to help give the landlord security. Trust works both ways.
- If you are struggling to pay your rent, get advice and let your landlord know as soon as possible. They may be able to agree a reduced amount for a short time whilst you get back on your feet.
Whilst renting, the Webb family bought two properties in Liverpool, one as a vacant buy-to-let and the other with lodgers. The tenant was paying £525/month. When asked to increase the rent to £575/month (the going rent was £650) she replied that she was on reduced hours and requested to postpone the increase.
Linda Webb says the tenant had always paid promptly and although the insurance and maintenance costs had increased, they were happy to give her more time. They would also have incurred more costs in finding a new tenant. A few months later she agreed to pay the new rent.
- Never stop paying your rent. This could lead you into all sorts of legal problems. Always try to keep a dialogue going with your landlord or agent. Most will want to work with you, rather than being obliged to “go legal”.
- Be a good tenant. Pay your rent on time and look after the property. Always be open to inspections and phone calls. If you are a good tenant, landlords are more likely to keep you, rather than risk an unknown new renter.
- Keep communication open with your landlord. This demonstrates you are a good tenant.
After Linda Webb sold a property to release some equity and move to a cheaper area, the family hoped to be renting temporarily. But this was extended as they couldn’t get their children into the same school. Each time the landlord tried to put up the rent, she challenged it, asking why there was a need to increase. She comments:
Many letting agents seem to think it’s a rite of passage to increase rents yearly to make more profit. I advise renters to always challenge, as the landlord may just be agreeing with the estate agent, without any further information.”
- In discussions about rent increase at contract renewal, demonstrate your value as a good tenant. Have a list ready of how you have saved the landlord money.
- Maintain your property, furniture and goods properly. Don’t waste your landlord’s time to say your washing machine is broken when it’s because you haven’t cleaned it, or the freezer is not working when it hasn’t been defrosted. Whilst easily fixed, these cases are time-consuming annoyances for landlords.
- Consider doing a little extra in looking after the property to show your reliability and value, e.g. buy throws for sofas, use a table cloth, all things to take with you, but also protect the property.
- Offer to decorate and undertake maintenance to ensure the property stays in good condition. The landlord can buy paint for you to use and keep decorating costs down.
- Share and Care Homeshare is an organisation that brings people together, usually from two different generations. It connects those looking for inexpensive accommodation with home owners seeking company, help round the house and/or garden, to keep their independence. The organisation has been going for more than 17 years and has safeguarding measures in place. It is a good option for anyone who wants to give back to society and build a relationship with an older person.
- Negotiate face-to-face. It’s more difficult for someone to say “No” to you in person. Be polite and put your evidence and information across politely and objectively, whilst being ready to compromise. But if the landlord doesn’t make a decision there and then, thank them for their time and follow up with an email.
Your renting rights
Christian Weaver, barrister and author of The Law in 60 Seconds: A Pocket Guide to Your Rights* – explains your rights when it comes to problems with renting.
3 things you need to look for when signing a tenancy
What you are entitled to when moving into a rented property
