By Sarah Macklin 
Latest data from the Office of National Statistics (ONS) reveals that renters have a bigger chance of experiencing financial vulnerability than those who own their home or have a mortgaged property.
A huge 43% of renters have admitted that they struggle to afford their rent, and this could be down to the cost (monthly payments tend to be higher when renting compared to having a mortgage). The data revealed that renters are spending 21% of their income on rent, a huge percentage that may not leave them with much disposable income once they pay other expenses and bills.
If you are currently renting and you’re wondering how you could save money, you’re in the right place. We’ve teamed up with Quotezone.co.uk to give you some top suggestions to ensure you don’t lose your deposit or lose additional money on top of your monthly rent.
Why is rent going up?
The first thing to understand is why rent is going up. First, fewer people are purchasing their homes, which means there are more renters in the market. With interest rates increasing, as well as the cost of purchasing a home (solicitor’s fees, stamp duty, etc.), more people are renting instead. In fact, the number of households renting has nearly doubled since 2000 to more than 19%.
An increase in renters leads to higher demand. Remember how over 50 people queued to view a house in East London earlier in the year? This shows how crazy the market is and how desperate tenants are to find a home. Some renters are even offering above the market rate in order to get the property they want, in effect bidding other people out.
The house in East London was advertised at £1,200 per month but it ended up being rented for £1,350 due to demand.
The national average asking price for rent outside London has reached a new record of £1,190 a month, while London average prices have surpassed £2,500 for the first time.
These nationwide price hikes are adding to increasing demands already established by the cost-of-living crisis, making it vital Brits find savings wherever possible.
When it comes to renting things like knowing your rights, making an inventory of issues and taking out tenants insurance can all help when it comes to losing as little money as possible during a tenancy.
Greg Wilson, founder at Quotezone.co.uk, said: “Rent prices across the country have risen to record highs, and many renters are feeling the impact.
“One of the simplest ways for Brits who are renting to make sure they aren’t forking out any more than they need to, is to make sure they know their rights.
“Many landlords are increasing rent in line with the cost-of-living crisis to help cover rising costs, so it’s more important than ever that renters do all they can to protect their security deposit as chances are they will lose more of it due to the increased cost of repairs and materials.
“Doing things like taking photos of prior issues when moving in and taking inventory of damage can help to safeguard the deposit and help avoid having money withheld at the end of the tenancy.
“If you need to make dramatic savings, even temporarily, it could be worth discussing adding a roommate with your landlord, to help spread the costs.”
Tips to help renters save money
1. Consider what amenities you need
If you’re looking for a new rental property, consider what amenities you absolutely need and which you can do without. The more amenities a building has, the more costly it can be. This can help you make a more informed decision about where to live based on the benefits provided by the building.
If a gym, a parking space and an on-site laundrette are an additional extra, you may wish to consider a building without these things.
2. Pay your rent on time
Just like you’d need to pay your mortgage on time, your rent shouldn’t be treated any differently. Failing to pay your rent to your landlord on time and have an effect on your credit score. This might make it harder to rent a property in the future, as well as take out loans, credit cards or a mortgage.
Some landlords may even charge a penalty for late rent, as much as hundreds of pounds per day, so it isn’t worth the risk.
In an emergency scenario, you may be able to speak to your landlord and explain the situation. They might have some flexibility or may offer a payment plan so you can pay your rent once you have it. Most landlords will be understanding.
3. Get a roommate
Have a spare room that is unused or just getting dusty? Use the space and rent out the room either on Airbnb or on a site such as SpareRoom. You should discuss the idea with your landlord first to check they approve. You’ll also want to discuss how rent and utility payments will be divided between you and the new renter. A written agreement may be a good idea should you run into problems down the line.
By renting out your extra room, you could reduce your own monthly rent, leaving you with a bit more disposable income to spend on other things.
4. Know your rights when it comes to price hikes
Your landlord cannot put your rent up multiple times in a year, and they need to give you at least a month’s notice before increasing the price. By knowing what your rights are in a situation like this, you could potentially prevent unnecessary hikes.
Rent increases are particularly rife after the pandemic, but the amount a landlord can increase their rate will depend on your agreement, and they should be fair and realistic about the increase (i.e. not upping the rent by £500 a month in one go).
You can always question any increases and confront your landlord if you think they’re unfair or against your agreement.
5. Complete an inventory
When moving into a new rental property, it is important to do a sweeping inventory of the space, taking photos and videos of its current condition and highlighting anything that needs the landlords immediate attention.
Remember, landlords cannot make deductions for fair wear and tear, and having date and time-stamped content of damage is the best way to ensure you are not blamed for prior issues when it comes to the end of your lease. Problems such as damp walls and mould will need to be addressed immediately for health reasons and to prevent it growing into a more serious issue.
6. Keep it clean
It sounds obvious but make sure to thoroughly clean and remove all belongings from the house to avoid being charged fees or having part of your deposit withheld for cleaning purposes. Keeping a good standard of cleanliness throughout the tenancy will stand you in good stead as landlords can inspect the property regularly to ensure it is being looked after.
What to do if something goes wrong?
If an accident happens in a rented property which leads to damage of the space or any furniture owned by the landlord, it is important to notify them straight away. Contacting your landlord or property management agency as soon as something goes wrong can help to safeguard your deposit and avoid any further damage.
Before an accident happens, you may wish to take out tenants or renters insurance. This will cover your items against theft and damage such as furniture, electrical equipment – anything you can take with you when you move. It also covers fire, floods and water damage.
It’s important to check your tenancy agreement as some landlords insist you have tenants insurance as part of the agreement and even tenants liability coverage if you’re renting a furnished property, to protect the landlords belongings as well. Also check if accidental damage is part of your policy or if you need to add it as an extra.
We hope these tips can come in useful and may prevent unnecessary rent hikes or losing your deposit when the time comes to move.
