Guidance

Private Rental (updated April 2020)

Updated 16 September 2020

This guidance was withdrawn on 8 March 2023

This publication is withdrawn as it is no longer current.

Please access Information and guidance on civilian housing

• Serial No: JSHAO/12
• Date: March 2020
• Review Date: April 2021

A definition of a rental is a property from which the owner receives payment from the occupant in return for occupying or using the property. Rental properties may be either residential or commercial.

Most Service personnel will have occupied a property at some point whilst Serving and been charged a payment to occupy either Service Family or Single Living Accommodation. Renting privately is a very different matter. If you’ve never rented privately before, or are looking for advice on this subject, this handout should help you out.

Options: Private Landlord or use a Letting Agency

Traditionally, there are two main ways of renting property and there are advantages and disadvantages to each.

Private Landlords

Firstly, there are independent private landlords. Private landlords come in all shapes and sizes, ranging from ‘Professional Landlords’ managing several properties, and large portfolios themselves. Right up to ‘Reluctant Landlords’, those landlords that have been forced to rent out their property to make ends meet. There are also a few single properties where Buy to Let home owners opt to become private landlords.

Advantages of using a Private Landlord

• more room to negotiate on price, as there are no letting agent fees

• direct telephone number to your landlord, which means you’ll be able to get a hold of them quickly

• you may be able to negotiate additional furnishing if you feel you need something extra. Private landlords are generally a little more flexible in that regard

Disadvantages of using a private landlord

• they may not be as professional as a letting agent, i.e. regarding rental laws etc

• a professional relationship will need to be maintained between tenant and landlord, which can get messy if things go sour. Many private landlords don’t bother with things such as property inventories

• a private landlord may not be fully aware of their responsibilities, and as such you need to be more careful if they are less experienced

Letting Agents

Letting Agents are the other way for those looking to rent. In many instances, there are cross-overs between estate agents and letting agents with some estate agents offering lettings and property management as an added service.

By law Letting Agents are required to display a full list of their fees online and in branches, in a place that’s likely to be seen by customers. Letting agents are often more expensive, with background checks, a ‘middleman fee’ and admin fees resulting in a passed-on fee to tenants. Using a letting agency can also be bound up with rules and regulations to minimise potential losses – regulations that can in some cases prove restrictive.

For example, many letting agencies insist on three monthly checks of the property to make sure that it is 100% in order, and as they left it. A good agent will make sure that both tenant and landlord are happy and negotiate on your behalf, saving you from the hassle of argument over a new set of curtains or whatever.

However, in some cases the assurances and the peace of mind provided by a professional management company can be worth paying extra for. Obviously not all landlords up the price to cover the letting agent fees, but it does pay to be armed with the facts prior to taking tenancy.

Advantages of using a Letting Agent

• they are more likely to be accurate in their rental valuation to the owner, and this may result in a saving of money being passed onto you

• rental collection is likely to be setup via monthly direct debit, meaning consistency of your personal finances, and making budgeting easier

• full inventory report performed professionally, normally resulting in minimal disputes at the end of the tenancy

Disadvantages of using a Letting Agent

• in some cases, letting agents can be more expensive, as owners often bump up the rent to cover the costs of the agent fees, or due to their market knowledge aren’t likely to give you as good a deal

• the stringent use of vetting and referencing procedures means you’re more likely to feel under scrutiny at the start of your tenancy. You probably will be subject to a credit check for example

• you will never be in direct contact with the owner of the property, only the letting agent

If you’re planning to rent a house, flat or room from a private landlord or letting agent, make sure you understand your rights, and be prepared for credit checks and upfront costs before you find a home.

Search for properties on the internet

Many landlords and letting agencies advertise on the internet. Popular websites that advertise house shares and homes to rent are:

• Rightmove

• Zoopla

• Spareroom

• Gumtree

Try doing a web search to see if there are local websites or forums that advertise flats, houses or rooms to rent.

When using these sites, never pay any money without seeing the property first. Take someone with you when visiting properties, if you can.

Use a Letting Agent to find and rent a home

You can use a letting agency to help you find a property. You will have to pay agency fees and charges if they find you a place. You’ll usually need to register with a letting agency before they’ll offer you a property, but it’s illegal for a letting agency to charge you a fee for registering with it or showing you its list of available properties.

Contact your Local Authority’s Housing Options Service

Speak to your local authority’s housing options service, especially if you need to find a landlord who will rent to you if you need to claim housing benefit. The council may also be able to help you with the tenancy deposit and rent in advance.

Check the property listings in newspapers and magazines

Most local newspapers and some local magazines have a section advertising houses or flats to rent or share. Some will be adverts from letting agencies and some will be from private landlords.

Look at notice boards in shops and community centres

Check notice boards in community centres, libraries, supermarkets, bookshops and newsagents. These often have adverts for rooms or houses to rent and are more likely to be put there by landlords themselves, rather than by letting agents.

Advertise that you need a place to rent

You could advertise that you’re looking for a place to rent. In your advert, describe the type of place you want, where you’d like to live and how much rent you can afford. You can put an advert on websites such as Spareroom or Gumtree. If you are on Facebook or Twitter, let your contacts know you are looking for a place. Some shops or community centres will let you put an advert on their notice board. Some of these are free, for others there will be a charge. Ask your friends, family or the people you work with if they know anyone who is renting out a room or a flat. Even if they don’t, someone they know might.

Applying to rent from a private landlord or letting agent

When you apply to rent a property, your letting agent or landlord will ask you to provide information and documents to show you are likely to be a good tenant. It’s a good idea to get all the information and documents ready while you’re looking for a place.

Documents to show landlords

Landlords or letting agents usually ask for documents to prove your identity, that you are reliable and that you can afford the rent. For example, they can ask for:

• Your bank details

• recent bank statements

• a letter from your employer confirming that you work for them

• your pay slips

• your employment contracts

• your accounts, if you work for yourself

• proof of benefit awards, if any.

Landlords can also ask for references from an employer or previous landlord. If you are renting for the first time, your landlord might accept a reference from a parent or guardian. Personnel who have previously occupied Service accommodation can request a reference from DIO or their Unit admin office.

Rent guarantors

You may need a guarantor if you are a student or young person renting for the first time, or you can’t prove that you can pay the rent. This is a person who agrees to pay the rent for you if you do not. Your guarantor would usually need to be a UK resident and own a property, and you will need their permission to use them as a guarantor.

Claiming housing benefit to help pay the rent

If you plan to claim housing benefit, ask the letting agent if the landlord accepts tenants on housing benefit before you pay any fees or sign any agreements. Not all landlords do.

Housing benefit won’t cover the deposit or any letting agency fees, and because it’s paid in arrears, you’ll need to pay the first month’s rent yourself. You may be able to get help paying your deposit through a rent deposit or bond scheme.

If your circumstances change and you have to claim housing benefit to pay rent in a property you’re already living in, this shouldn’t affect your tenancy if you pay your rent.

Questions to ask before applying for a property

Once you’ve found a room or property you like, make sure you find out as much about it as possible before you apply. Here are some questions to ask:

• what sort of tenancy agreement is it? Is it for 6 or 12 months?

• what fees and charges will you have to pay before moving in?

• how much is the rent, and when and how often is it paid?

• if you change your mind about the property after applying for it, or if the landlord changes their mind, what fees will be refunded?

• are there charges for renewing the tenancy? How much?

Credit checks for tenants

If you’re applying to rent a house or flat through a letting agent, they may ask if they can run a credit check. To do this, they will ask a credit reference agency to check if you’ve had problems paying bills in the past. The letting agent has to get your permission to do this. They may charge you for the check, although sometimes the landlord pays for it.

If there are any problems with the credit check, the letting agent may still rent the property to you if you have a guarantor. If you’re a young person who does not have a credit history, the letting agent may accept your parents to act as guarantors. You will need their permission for this.

Be prepared to pay a tenancy deposit and rent in advance

Landlords and letting agencies will usually ask for at least one month’s rent in advance and a deposit of one month’s rent. You must pay this before, or when you sign the tenancy agreement. Some landlords may ask for more than this. If you find a home through a letting agent, you may also have to pay agency fees before you move in. Some charge fees to tenants and some don’t.

When you find a property, you would like to rent, ask the letting agent about everything you’ll have to pay before you agree to take a tenancy. The letting agent should give you a list of all the fees.

Tenancy Deposit Protection

Your landlord must put your deposit in a government-backed tenancy deposit scheme (TDP) if you rent your home on an assured shorthold tenancy that started after 6 April 2007. In England and Wales your deposit can be registered with:

• Deposit Protection Service (Custodial and Insured)

• MyDeposits - including deposits that were held by Capita

• Tenancy Deposit Scheme (Custodial and Insured)

If you don’t rent your home on an assured shorthold tenancy, your landlord can accept valuable items (eg a car or watch) as a deposit instead of money. The items won’t be protected by a scheme.

Please note that there are separate TDP schemes in Scotland and Northern Ireland.

They make sure you’ll get your deposit back if you:

• meet the terms of your tenancy agreement

• don’t damage the property

• pay your rent and bills.

Your landlord or letting agent must put your deposit in the scheme within 30 days of getting it.

At the end of your tenancy

Your landlord must return your deposit within 10 days of you both agreeing how much you’ll get back. If you’re in a dispute with your landlord, then your deposit will be protected in the TDP scheme until the issue is sorted out.

Holding deposits

Your landlord doesn’t have to protect a holding deposit (money you pay to ‘hold’ a property before an agreement is signed). Once you become a tenant, the holding deposit becomes a deposit, which they must protect.

Deposits made by a third party

Your landlord must use a TDP scheme even if your deposit is paid by someone else, e.g. a rent deposit scheme or your parents.

Know your rights and responsibilities under the contract

When you have paid your deposit, rent in advance and fees, your agent or landlord will give you a tenancy agreement to sign before you can move in. Check this carefully before you sign it. This sets out the rights and responsibilities that you and your landlord have during your tenancy and should tell you what type of tenancy you have and how to end or renew your tenancy.

For further information on private rental:

On GOV.UK you will be able to find more information on ‘How to Rent’ and/or ‘Housing Benefit’

You will also be able able to find further information on Shelter

Joint Service Housing Advice Office Civ: 01252 787574 Mil: 94222 7574 RC-PERS-JSHAO-0Mailbox@mod.gov.uk