Moving out for the first time is an exciting step, but it’s also full of unknowns and can be daunting for first-time renters.
There’s a lot to consider – most of it financial – but understanding what to expect can really help.
“We know moving out for the first time can be intimidating but following these easy steps can help ease the anticipation of what to expect,” advises Rob Smith, Parkers Managing Director.
“We recommend finalising your budget as the first step!
“Google what the average electricity bills are for your household and think about WiFi speed if you’re working from home.
“Look at council tax bands and consider the cost of your average food shop. If you work out your total budget, looking for a place to rent
gets all the easier.”
In this guide, we reveal the seven key things you’ll need to do and everything you’ll need to look for when renting you first home.
1. Work out how much you can spend on rent
Your biggest outgoing when renting will be your rent payments to your landlord.
Before you start searching for suitable properties, work out your budget and what you can comfortably afford to spend each month on rent.
It’s hugely important not to overstretch yourself and by considering your rent affordability before you start searching, you can avoid wasting time looking at properties you can’t afford.
How rent affordability is calculated
When you find a property you like, your letting agent will ask for documents to support your tenancy application.
These allow them to perform an affordability test, so they can be sure you’ll be able to pay your rent each month.
Your agent may ask for:
- An employer’s reference
- Employee payslips
- Bank statements showing outgoings
- Accounts or a SA302 tax form if you’re self-employed
The agent will also perform a soft credit check.
For your rent to be classed as ‘affordable’, your annual salary will need to be 30 times higher than the monthly rent.
So, if your rent is £800 per month, you’d need to earn an annual salary of £24,000 or have a combined household income of at least that amount if you’re renting with someone else.
If you don’t pass the affordability test, your agent may request a guarantor, who will agree to take on responsibility for your rent if you’re unable to pay yourself.
2. Make sure you have enough for a deposit
The biggest up-front payment you’ll make when renting for the first time is your security deposit.
This is in place to protect your landlord should you be unable to pay your rent or damage is caused to the property you’re renting.
Since 2019, the amount your landlord can request as a deposit has been capped, so if you know how much a property will cost in monthly rent, you can work out the deposit you’ll require.
- If the annual rent is less than £50,000, your deposit will be no more than five weeks’ rent
- If the annual rent exceeds £50,000, your deposit will be no more than six weeks’ rent
Other deposit rules you need to know about
Once you’ve handed over your deposit, your landlord or their letting agent must place it in one of the UK’s tenancy deposit protection schemes within 30 days.
They must also give you details of how much you’ve provided as a deposit, and which scheme your money is with.
3. Factor in your monthly household bills
When considering if a rental property is affordable, you’ll need to factor in your other monthly outgoings.
Paying regular bills can be daunting when renting for the first time, but you should be prepared to pay:
- Monthly council tax
- Gas and electricity bills
- Water and sewerage bills
- TV licence fee
You may also have to factor in optional payments such as a contents insurance policy if you’re renting with lots of your own belongings, broadband, and subscriptions such as music and TV streaming services.
How much are bills per month?
You can get a great idea how much your rental property will cost to run by looking at its Energy Performance Certificate (EPC).
This must be provided when the property goes on the rental market and shows its energy efficiency rating alongside projected annual costs for gas and electricity.
How much is a TV licence in the UK?
TV licences in the UK cost £159 per year and you’ll need to pay this if you have a television in your rental property unless your landlord covers this cost by providing a TV for you.
How much does the average person spend on food per week?
The average UK household spends £97 on food and non-alcoholic drink each week, according to the Office for National Statistics.
That works out as £26.50 per person, per house, although doesn’t take into account individual calorific needs or money spent on food prepared by restaurants and takeaways.
4. Think carefully about what you need as a first-time renter
When looking at properties to rent, think carefully about what you’ll need from your home, which could include:
- Whether the property is furnished or unfurnished
- Off-road parking
- Superfast, fibre broadband connection
- An additional room to set up a home office
- More storage, or an outbuilding to store bikes
- A large kitchen diner or separate dining space for entertaining
- A garden or outside communal area
You should also think about the location you want to live in and consider:
- How close you need to be to transport links like main roads or a railway station
- How long you’re willing to spend commuting to work
- The amenities you need close by
- The quality of schools if you have children
5. Plan and think about how long you’ll stay
When you rent for the first time, you should think about the future and how long you’re likely to stay in your first rental property.
Your landlord or letting agent will let you know how long they’d like your initial fixed term to run for and once you’ve signed your tenancy agreement, you’ll be committed to stay in the property for that period.
If you think you may need to move again in the short-term, you should try to find a property with a six-month or 12-month fixed term.
But if you’re looking to put down some roots, you may wish to speak to your landlord about fixing for longer, perhaps two or even three years.
6. Understand your rights and responsibilities
Moving out and renting for the first time will mean much more responsibility that perhaps you’re used to.
You’ll also have some key rights, too, and it’s important to understand both these and your responsibilities as a tenant.
Your rights as a tenant
As a tenant, you have a number of key rights, including the right to:
- Be protected from unfair eviction and unfair rent increases
- Have your deposit protected in an approved scheme
- Have your deposit returned at the end of your tenancy, so long as you’ve met your obligations
- Live in a property that’s safe and in good repair
- Quiet enjoyment of the property and adequate notice from your landlord ahead of any visit
- Live in a property that has an Energy Performance Certificate (EPC) rating of at least ‘E’
Your responsibilities as a tenant
Your responsibilities will be outlined in your tenancy agreement and will include:
- To look after and avoid damaging your rental property
- Paying your rent in full and on time
- Paying all other bills you’re responsible for in full and on time
- Paying for damage caused by you or your guests
- Allowing your landlord or letting agent to inspect the property as long as adequate notice is given
- Not sub-letting rooms unless allowed to do so
- Reporting maintenance issues to your landlord or letting agent in good time so these issues can be fixed
7. Check and understand your inventory
When you move into your rental property, you’ll be given a property inventory to check and sign.
The inventory details the property’s condition on the day you move in and lists all items provided with the property and their condition.
Images are also included with inventories in many cases.
Make sure you check through the inventory and consider its contents against what you can see with your own eyes.
Only sign it once you’re happy it’s accurate, as the inventory is in place as evidence should you end up in dispute with your landlord over your deposit at the end of your tenancy.
