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On this edition of Buy to let Gems I’m travelling to Mile End, E3 and focusing on the student rental market in that area.

The covid years have been tumultuous for many East London landlords, even those that own properties near universities. But in the summer of 2021 that all changed and rents went back to normal and some agencies have even said that they had seen all time highs in fact.

This is why we have come to Mile End and why I believe people should invest in something like this property.

This is a 3 bed maisonette in an ex-local authority building within walking distance of Queen Mary University. 2 double rooms and a single. To rent this property to students or even professionals that form more than 1 household, you will need an additional licence from Tower Hamlets council. This should allow up to 4 households and even be allowed to convert the living room to a bedroom, provided the smallest room is larger than 6.5sqm. 

Disclaimer: This information was correct at the time of writing this article. If you are purchasing this property or a property like this, please do your due diligence before buying or even reach out to me for the most accurate information at that time.

This property should rent for around £2500 pcm to students in August/Sept time and that’s being  conservative. From the pictures this property looks like it’s been decorated to a very nice standard unlike many others on the market right now. In the summer of 2021 my team had achieved £2500 pcm for much lesser properties, therefore I’m very comfortable with this appraisal.

As usual, here’s my breakdown of costs, yields and ROI’s:

The total initial spend is £132,250.00 however the gross yield from that is over 7% and a net of 5.29%. I assumed a service charge of around £1800 per annum as I went to see several properties in that neighbourhood which were around that and some lower. Gross return on investment over 22% and net at almost 17%. These are the types of investments I would hope to be making this year.

There’s definitely capital appreciation to be seen on this property even within the next 2 years I would say, as we are currently experiencing a price dip in many parts of East London. My prediction is that a property like this will sell close to half a million in the next 3 years.

If you would like a deep analysis on any property that you are looking to buy, don’t hesitate to contact me for a FREE no obligation impartial opinion by emailing abul@cityrealtor.co.uk.

I come across many self-employed people who collect money in cash, many of whom are very successful in their fields, be it builders, gardeners or makeup artists (not for me, although I can do with one). In a good wedding season makeup artists can make up to £5,000 a day which is definitely not a bad day’s work by anyone’s standard. But let’s say you even make £1,000 a day and it’s all cash every working day of the year, you would have racked up a whopping £261,000 (enough to buy a lovely house in Grantham or a nice little flat on the outskirts of London) however, this cash means nothing when you’re buying a property. 

Firstly you should be paying your taxes anyway otherwise the taxman will eventually get you. Secondly, when it comes time to buy your flat/house you will have to explain where your money came from. You will first have to explain to your solicitor why you have £261,000 stashed away under your mattresses in old 20’s and 50 pound notes. Next, if you are getting a mortgage, your lender will definitely want to know how you accumulated this small fortune. They will also want to know that you will be able to pay your monthly mortgage payments going forward. With your monthly takings you should have no problems paying that mortgage, however it needs to be on the books to prove that you can pay it. That means either through payroll, dividends, benefits in kind or a mix of them all. 

There’s a misconception generally that if you’re a higher rate taxpayer, then you would pay 40% of your entire income in tax, it doesn’t quite work like that. There’s a picture that went viral online recently which describes the UK income tax system quite well. I’ll attach it here and of course do your own research as the picture does not take into account dividends and NI etc. But still a very good visual for many.

Just to give you a brief idea about how much you would need to earn and have as a deposit I’ll give you an example of a £500,000 house. When buying a house like this to live in, you would need a residential mortgage where the bank (lenders) would typically ask you to put down at least 15% (lower deposits are available but usually with undesirable rates) which equates to £75,000. This means you will be borrowing £425,000 from the lenders, but for them to lend you this amount they want you to be earning somewhere between £85,000 per annum and £106,250 per annum (this depends on the lender’s criteria, generally it’s 4 or 5 times your salary). Therefore if you’re a highly paid self-employed person, you need to be able to display that you can earn this much and pay taxes to reflect this.

To buy a rental property, it doesn’t work quite the same way. It is favorable to have at least a 25k salary, however you still need to prove where your deposit came from. And generally lenders will ask for a minimum of 25% deposit however there are products available with less deposit (again with less desirable rates usually). If you become a professional landlord, then you may not even need a £25k salary. Anyway, before I digress on a tangent, get yourself a good mortgage broker who can advise you regarding the best products and rates on the market.  

Nobody likes paying their taxes, who wouldn’t like to keep all the money they earn, but if you are looking to buy a house/flat then I would advise that you get yourself a good accountant and start paying your taxes (disclaimer: even if you’re not buying a house, you should still pay your taxes). A good accountant will find smart legal ways to pay as less tax as possible, while earning the most possible. 

So to all my self employed readers out there, if you are looking to buy a house or a BTL property, get yourself a good accountant and pay your damn taxes, and start soon, as lenders can (not always) ask for your last 3 years accounts.

In my years as a lettings agent I come across 2 types of misconceptions a lot. 1 is that renting a property is so overly simple, and the other is “oh my god, this is so complicated, what did I get myself into, I should’ve just invested into crypto”, like that’s any simpler. And the truth is its somewhere in between. It’s definitely not simple, but with a little guidance and preparation you will be fine.

The things I will go through in this article will be accurate to Jan 2022 and will probably apply to most of England, however please do check with your local boroughs regarding anything particular to your area, most likely licensing.

It’s around noon, you’ve been waiting for the call since you woke up. You’re anxious, excited and most likely upset with someone in the process of this purchase (most likely your solicitor, joooke). And the call finally comes, the voice in the phone says “congratulations, you’ve completed, please go and collect your keys from the estate agent” somewhat unceremoniously. After collecting your keys you walk out the door and start thinking to yourself “what the .. next”.

First thing you do is go and see the property to see if it’s in the condition you expected or at least just check what condition it’s in. It may be that the property needs light touch ups as a property can look very different when the keys are handed over to when you saw it lived in. A lot of the marks on the walls and damage to the sealant is somehow covered up. However, fear not, you’ll be amazed what a quick lick of paint and some sealant can do.

If there is no major renovation work to do, then you need to next look at getting the compliance certificates done. This would be the following:

• Gas Safety Certificate (GSC)
• Electrical Installations Conditions Report (EICR)
• Energy Performance Certificate (EPC)

All three of the above are mandatory. It’s likely you would have an EPC if you have just bought it. But in any case, all EPC’s are held on an online database that anyone can access on the following link: https://www.gov.uk/find-energy-certificate

The GSC and the EICR are not on online registers so if you don’t have them then you need to get them done. When getting the gas safe done, you should also ask the engineer to install a carbon monoxide alarm and there should be a minimum of 1 smoke alarm in every hallway. While your gas engineers there get him to check the heating to see if it’s all working ok.

Other tests you may need to do are:

PAT test – Portable appliance test, if you are providing portable appliances. 

Legionnaires test – This is to check that the water coming through the taps is safe to drink. Generally speaking, tenants should always try and run the taps for at least 20 mins to avoid legionnaires disease. Problems can happen when there is a large gap in between tenancies.

Next is licensing. This is dependent on your local authority and can sometimes get quite complicated. Being ‘The East London Blog’ and all I will use 2 East London boroughs as examples. In the London borough of Barking & Dagenham (LBBD) it doesn’t matter how many rooms a property has, they all require something called a selective license. In Tower Hamlets however they have 3 different types of licensing; Selective, Additional and Mandatory HMO. I will go into this in detail in a future article. I would advise speaking with a local property professional if you find it difficult figuring out which one you need. Lettings agents would usually offer this as a processing service. 

Next, get it ready for advertising and viewings. If you are using a letting agency it’s likely they will take professional photos and floorplan. Staging the property helps advertising immensely. 

You may want to ask your agent about whether it’s worth furnishing the property. It can depend on what area the property is in, or what type of property is. Certain areas need the properties to be furnished as it may only attract young professionals who may move the following year whereas other properties may only attract families who may already have their own furniture or want to buy their own. Same goes for the white goods.

Referencing your tenants. If you are using an agent, ask them who they use to reference their tenants and make sure it’s a reputable company, as there are many companies that do not do full checks.

I would strongly advise that you appoint a clerk to do an inventory, this is the best way to cover both yourself as a Landlord and your tenant. This can only be charged to the Landlord now after the tenant fee ban in June 2019.

Make sure that you and your tenants both sign a tenancy agreement so that you are both aware on your obligations.

And lastly, protecting the deposit. As a landlord you have to protect the deposit within 30 days of receiving it. Be sure to do this in time otherwise you can be fined for it. You have a choice of 3 government approved companies to do this with:

• TDS
• DPS
• MyDeposits

And that’s it, I told you, somewhere in between.

Welcome to the first ‘BTL Gems’ article.

This series of articles will follow the BTL market in East London where I will pick out good deals that you can invest in. I will break down the yield, upfront costs and running costs, so as a BTL investor you can fully know what you are getting yourself into. 

In this months edition I have chosen the following property: 

This is a 2 bedroom property in Shadwell, E1 and marketed by Smart Property. As you can see it’s on the market for ‘offers over £325k’. It’s been on the market since 10th September 2020 and reduced on 12th March 2021 from £350k. When a property has been on the market this long, it means 1 of 2 things. Either the seller is not a serious seller or its been on the market too long and the adverts become stale. If it’s the latter then a deal may be there to be had. 

Although I think there is some negotiation to be done here, let’s go with the £325k purchase price to calculate the figures you need to know.

This property will rent to the local authority for £1585 fairly easily. And if in a decent condition will fetch around £1700-1800 pcm on the private market.

It needs some light cosmetic work and because theres no kitchen and bathroom pics, its hard to tell how much work is needed there. Usually when theres no kitchen and bathroom pics its because its better you don’t see them.

Before I get into the numbers take a look at the table below. This is something I fill out every time I’m interested in a property. Seeing the numbers laid out like this always helps me see things a bit more clearly. 

At £1,585 pcm you are looking at a tidy 5.85% yield. As a HMO I believe you can hit the 7-8% mark no problem, where rooms are rented between £700 and £800 pcm including the living room. This is good as the average in London is below 5% at the moment.

Always remember to factor in the service charge for leasehold properties when working out your net profit. I would also factor in a small margin on lettings agency costs and building maintenance costs. 

1 bed Properties in the same building on the market for £300k so buying a 2 bed for £325k is not so bad when we usually see at least a £50k difference between 1 and 2 beds like these.

At £325k a BTL investor would typically look at putting down £81,250 as a deposit and a £16,000 stamp duty fee. 

I expect properties like this to see great capital appreciation over the next few years when we see the real bounce back from covid and Central London is back in full effect. Not so long ago, 2 bed ex local properties in this area were marketed between £400-425k.

I hope this article brought you some value or insight into the East London BTL market. I will aim to get you at least 1 BTL Gem every month so do let me know if there’s a specific property that is on the market right now that you would like me to break down.

Welcome to the very first article of The East London Property Blog. I’ve toyed with a few different ideas for the first article and none seemed right for the launch, and then came the Idea to write about how the East London property market has been coping over the last few years, the dreaded covid years. So here I am writing this article on the night of new years eve which requires several hours of research, hoping to post on the first day of the year. Well done Abul, could’ve thought of that earlier.

The sales market

Anyway, now that I’ve stopped babbling, let’s take a look at the sales market in East London. I need to throw out a few disclaimers first; for my examples I’ve chosen to use E postcodes only even though LBBD, Havering and Redbridge (IG and RM) are considered East London, However I didn’t have the time to extract all the data for it but I will be making reference to it from my personal experiences. The house price data has come from the Land registry website. Second Disclaimer is that I downloaded the data on the 31st of December 2021, therefore the data for 2021 will likely not be fully accurate as it usually takes a few months to update, however the averages will be a good indicator for this article. In this article I will be discussing the sales and rental market and will be analysing the overall prices, averages and number of transactions.

So let’s now take a look at some stats:

As you can see, From 2019 (which was pre covid), to 2021, the total value of property sold has almost halved. However if you look at the Average Prices tabel, you will see that the average price of property has actually increased slightly every year while the number of transactions have gone down steadily. 

So let’s explore some of the reasons for our findings. Firstly regarding the total values, in March 2020 we saw almost all industries come to a halt, briefly. This did affect the property market massively, which is one of the reasons we saw the stamp duty holidays brought in by the chancellor Rishi Sunak. This got the market moving but of course it would have been very hard to match 2019, imagine what would have happened without this great incentive to buy property, I bet you’d rather not.

Secondly, although the average prices have risen the number of transactions have fallen. Traditionally this happens when prices rise. After lockdown, many people wanted to move, for a change of scenery, and for many it was a move from a flat to a house. This meant many people were moving out of the E1, E2, E3, E14, postcodes. Not having to work from the office meant many people did not have to be that close to work, which led to people moving further away from central London. This of course meant most areas with houses went up in value and inner city London areas like Tower Hamlets and Hackney have actually seen a dip in prices. As you can see from the individual postcode table you will see that most of the postcodes show that the average price actually went up with the exception of a few. Some went up in 2020 and then went down in 2021. This can happen when there is an influx of new builds in an area, like E16, where there is massive amounts of new construction happening on the coast of the Thames like the Royal Wharf development. These properties are priced much higher than the average property in the postcode before which may have pushed the average high in 2020, but then in 2021 the average went further down than 2019 even though the number of transactions were almost double. I anticipate this going up again soon as there is still a lot of new construction taking place in the area.

Now if we spend a little time looking at the table with the total number of transactions with individual postcodes you will see that overall most went down progressively after covid hit. With some postcodes like E20 having as little as only 15 sales after having 867 the previous year. Mind you, E20 is a brand new postcode only existing since 2011 just before the olympics, residing in stratford where there are only new build properties, therefore it is likely that we will see another spike soon, as there are still new buildings popping up in E20.

However, the majority of the other postcodes saw a big drop, apart from E7 which saw a slight increase and E16. The interesting thing about E16 is that the number of transactions almost doubled in 2021 as I mentioned earlier, while we saw the average price go more than half. Like I said, when prices increase you will see transactions slow down and when prices go down the transactions go up.

This is why I believe people will and should be investing in E1, we’ve seen a massive drop in average price but also a massive drop in transactions. When in fact people should be actually investing in E1 right now. The prices are low and I don’t expect them to go much lower. It’s one of the cheapest inner city areas to buy in right now. Although the average price is 844k, in fact you can buy 1 beds for as low as 285k, 2 beds for as low as 320k and 3 beds for around £380-400k. The rents of which are around £1300, £1800 and £2400 pcm respectively. All these properties would have been around £50k higher in recent years like 2016, and I believe soon they will hit those numbers again.

Rental 

It was harder to find stone cold stats for rental but my personal experience working in an East London Sales and Lettings agency was that in 2020, soon after the lockdown we saw a massive drop in rents. The media says up to 20% drop, in some parts we saw up to 30% and that is partly due to Central London flatlining briefly and also where some properties were actually overlet. Also due to the initial shock factor of the covid, we saw many international tenants from different parts of Europe fleeing the country, leaving their deposits and wanting to be near their loved ones. This of course created a massive vacuum in the rental market. Since then we have seen a bit of a rollercoaster ride where the market has been going up and down and after the summer of 2021 I believe we have almost come back to normal.  

We’ve seen many renters move to more rural areas like Barking, Seven Kings, Gants Hill and so on, and in areas like this, the change in rent was almost unaffected over the last few years, in fact some places it went up. 

Whats coming in 2022

So, what’s to come in the next few years? As you may know the Bank of England base rate has gone up from 0.1% to 0.25% after a very long time. This is reflective of inflation, which is probably up much more than 0.25%. With inflation we will definitely see the prices of property go up again, some experts say up to 10% market wide. If you are looking to buy property in a London area, I would advise buying in E1. In later articles and blogs, I will share individual property adverts that I think are great investments in East London.

Well that’s where I’ll wrap up my first blog/article. If there’s any topics you would like me to write about please do reach out to me and I hope you enjoyed this one.

On the 12th of November 2021, we were invited to the first ever awards ceremony held by @all_agents_uk . All Agents are the largest Estate and Lettings agent review site in the UK. This is why we were delighted to receive 4 Gold awards and the National Award for Best Lettings Agency in the UK. This is our third consecutive year to win Best in Lettings and Sales in E1 and London, but to win the Best Lettings in the UK was a wonderful surprise. We would like to thank all our lovely landlords, tenants, buyers, vendors, and suppliers for their support in helping us achieve this and we will of course continue in our endeavors to always deliver the best service we can.

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Ride 4 Your Mosque initiative encourages the community to take up cycling for a healthier lifestyle as well as support our fundraising for the mosque. This year’s fun-filled and scenic ride will be from Cambridge to East London Mosque. This is suitable for beginners as well as experienced riders.

Our director Hassan is taking part in in this years event & we kindly ask for your support  by donating in order to make the mosque debt free and self-sufficient.

Please donate generously via the link below.

https://www.eastlondonmosque.org.uk/fundraisers/mhassans-ride4elm

Shared accommodation is no longer something only students endure for a few years. You may be sharing a house or flat with other professionals, friends or a partner. Follow these tips to keep your house share amicable.

1. Keep the property tidy

Cleanliness is subjective and we all have different ideas of what ‘clean’ means. It’s best to share with housemates that have similar standards to you. If this isn’t possible, try to compromise. You should set a few ground rules in the house or flat at the start of your tenancy agreement, such as keeping communal areas (kitchen, living room, bathroom, etc.) clean and tidy.

Everyone must agree to clear up after themselves, particularly in the kitchen, and dirty pots should never be left to fester. Try creating a cleaning rota to ensure everyone does their fair share of the housework, or agree to split the cost of a weekly or fortnightly cleaner.

2. Get your house bills and utilities in order

When you move in, agree with your housemates on how bills will be paid and split between everyone, as this is a common cause of arguments. Set up bank transfers to cover the monthly outgoings that are your responsibility, and keep a record of what’s been agreed with everyone when it comes to making payments.

Alternatively, download an app that allows you all to access and track expenses by logging in from your phone.

3. Keep your room secure

Keep your belongings in your room and be clever with storage, so that your personal items don’t spill into the communal spaces.

Security can be an issue in a house share, with people coming in and out of your home that you don’t know, so it’s worth having some lockable storage in your room for high-value items.

Be vigilant and, as a house, agree to always lock your doors and windows to prevent break-ins. If you’ve got a house alarm, use it!

4. Share the essentials

It’s a good idea to band together with your housemates and put money towards kitchen basics such as pots and pans, condiments, spices, and dairy products to save you all over-buying.

Each month, you can agree on what needs to be replaced and all put money in a pot to make sure that those essentials are restored going forward.

Property selling is not something most of us do every day, so choosing an estate agency to handle the sale might seem a little daunting.

Contrary to what you may think, not all agencies are the same and some will be more effective than others.

This guide will help you find a professional and pro-active agency that will sell your property for the best possible price.

How to Choose an Estate Agent

1. Traditional or online estate agency?

You first choice is the type of estate agency to use.

A traditional full-service estate agency will have an office that you can visit and will normally take care of every stage of the selling process in return for a fee when the sale goes through. They usually work on a no-sale, no-fee basis, so if the property doesn’t sell you shouldn’t be out of pocket.

Online agencies generally don’t have offices you can visit and usually charge an up-front fee to put a property on the market. There can be further charges if a sale takes place and you may need to deal with a lot of the selling process yourself.

As the overwhelming majority of sellers use traditional estate agencies this is what we look at in this guide.

2. To start with – make a shortlist of estate agents

Create a list of about six agents you would consider using. Ask friends and neighbours if they can recommend some. You will probably have seen agents’ For Sale boards, advertisements in the papers and promotional leaflets through your letterbox. Which ones catch your eye?

Take a stroll down your local high street and have a look in the agents’ windows. Which ones are smart and appealing? All estate agents must belong to an Ombudsman scheme for dealing with unresolved complaints. Some belong to an industry body such as the NAEA Propertymark (formally the National Association of Estate Agents) or RICS (Royal Institution of Chartered Surveyors).

All good agents should be operating to codes of conduct that will ensure you are dealt with professionally.

3. Narrow down the choices – take a closer look

Now find out more about the firms on your list. Look at their websites. There may be information about the company, staff, range of services and perhaps some comments from customers. Look at the properties they are listing for sale. Are they similar to yours and presented with good quality photographs, floor plans and clear information? Would you be happy to see your property on there?

Check that the agent advertises properties on at least one major property portal. You should now be able to narrow down your list to two or three agents that can be asked out to your property to give their opinion of its market value and to explain how they would go about selling it at this price to a reliable buyer.

4. Find out if they are the estate agents for you – go and see them

It’s tempting to email or call these agents right away but you’ll get a much better sense of who they are and what they are like if you visit their offices to make the appointments. You are about to ask them to deal with what is probably your most valuable asset so you want to know they are people you are likely to trust and get on with. When you go in, how do they respond to you? Do you feel welcome? Are they helpful? Is it a professional and friendly environment? If you feel comfortable, make the appointment. If not, it’s best to walk away.

5. The valuation of your property – what to watch for

When the agent arrives pay attention to their punctuality, politeness, professionalism and knowledge. They will tell you what they think the asking price should be and how much the property may actually sell for. If all the agents suggest similar amounts, you can be reasonably sure they are accurate but don’t be surprised if one comes up with a very different figure. They might know something the others don’t! Always ask them to justify their opinions of the value of your property by showing you examples of similar ones that are on the market and those that have sold.

6. Help the agent to help you – tell them what you need

A good agent will want to have an understanding of your circumstances and needs. Perhaps you must sell by a certain date because of a job move or there’s a baby on the way and you need to get a bigger home. Help them to help you. Be honest about your circumstances and why you are selling. Everyone has particular requirements and a good agent will tailor their services to deal with them.

7. Assess the agent – ask them lots of questions

From your fact-finding at the beginning you’ll already have some idea of how these agents showcase properties for sale but you want to know what they are going to do for you individually and how they will go about marketing your property. Ask if they have “hot” prospective buyers already on their books. Find out if they will accompany the people who come to view.

Ask how often they will keep in touch to let you know how things are going. And find out what they do once a sale is agreed as a good agent will be able to tell you about what is called “sales progression” which is really important to making sure the sale goes through.

8. The estate agent’s fees – what you can expect

The agent will charge a fee to sell your property. Fees are usually a percentage of the selling price. There may be additional costs for things like advertising or photography and there might be a fee if you withdraw the property from sale. A good agent will explain all this in detail and there should be no hidden costs.

The actual amount you pay will depend on what services the agent is providing and whether they are appointed as your “sole agent” or one of several. Make a value judgment based on what services the agent provides and don’t assume that cheapest is best. It seldom is.

9. Choosing the agent – it’s time to decide

You’ve now met the agents, had their opinions about price, found out what they will do for you and know what they will charge. There’s also the fact that “people buy people” and you’ll almost certainly like some individuals better than others. It’s time to make your choice based on all you have seen and heard.

You can appoint just the one agency, or several. In practice, it is often best to use just one as your “sole agent”. You’ll pay a lower fee and, because the agent knows they have a reasonable chance of selling the property, they will concentrate their efforts on it. The sole agency arrangement will last for an agreed period of time.

10. You and your agent – working as a team

Now that you have chosen which agent or agents to instruct, call them up and give them the good news. They will then start the process of putting your property on the market. Our final tip is about what happens from now on. Think of you and the agent as being on the same team.

You are working in partnership to find a buyer who will pay the best price for the property within a time-frame that suits you. You’ll be more likely to succeed in doing that if you work closely together and we look at how that happens in another of our top tip guides, “Working with your agent”.

All your frequently asked questions about renting a house or flat answered, including information about rent guarantors, referencing and deposits.

I need to find a place to rent. What do i do first?

Before you start searching for your new home it’s a good idea to write down a budget. What are your current outgoings and what money do you have left each month to spend on rent? Take into account that, when you first move in, you will need to front a security deposit as well as the first month’s rent and a refundable holding deposit.

I’ve found a place i want to rent. Now what?

If you haven’t already, make sure you go and view the property. If it’s a house-share, meet all the people you’ll be moving in with. The letting agent will ask you to sign a Tenancy Fee Declaration form which lists the services they will provide and the Permitted Payments expected from you, in line with the Tenant Fees Act 2019. The agent will then begin the referencing process to ensure you’re in a position to rent the property.

Why do i need to be referenced?

The landlord needs to be sure that that their tenant won’t have any problems paying the rent on a monthly basis and that the tenant will take good care of their property.

What does referencing involve?

Referencing is nothing to worry about. Tenants applying to rent need to give details of their employer and income, their previous address, and some bank account details. These will be checked to ensure they are able to commit to monthly rental payments.

Do i need to show ID?

As part of the referencing process we need to be sure a tenant is who they say they are. We will require a proof of residency (such as a utility or council tax bill from the last 3 months) and proof of ID (such as a passport or driving licence).

What if there are problems with my reference?

In some circumstances, a tenant may not be approved immediately via referencing. Obvious examples are students without a regular income, or someone leaving their family home for the first time with no renting history. This is not uncommon, and there are still options for tenants in this position. They could pay the rent for the full term up front, or seek out a guarantor.

What is a guarantor?

If a tenant is not fully approved by the referencing process, they can ask a guarantor to support them. A guarantor (usually a parent or guardian) will agree to take joint responsibility for the rent for the property if the tenant fails to. Guarantors are required to pay any rent arrears (if the tenant does not pay) and for any damages costing more than the deposit.

What does a guarantor need to do?

A guarantor needs to go through the same referencing process as a tenant. The normal requirement is that they are employed and a UK resident, with sufficient earnings to cover the tenant’s rental commitment.

Why does my guarantor have to guarantee all tenants?

In the case of a house-share, the tenancy agreement makes all tenants jointly responsible for all rents and responsibilities. There is no individual ‘share’ of the rent written into the agreement. The guarantor therefore has the same responsibility.

Why do i have to pay a deposit?

The landlord trusts the tenant to keep the property in a good condition and in good order. The deposit is held to ensure that any damages (over and above fair wear and tear) can be corrected at the end of the tenancy.

What will happen to my deposit?

Landlords and letting agents are required to register your deposit with an approved Tenancy Deposit Scheme. Your Move landlords register their deposits with a scheme such as My Deposits. The deposit is then either held by the landlord, the agent or the deposit scheme itself. You should receive details of the scheme, explaining where the deposit is held.

What does a Tenancy Deposit Scheme do?

A Tenancy Deposit Scheme like My Deposits will protect the money for you and can offer assistance should there be a dispute about the deposit at the end of the tenancy.

What is a tenancy agreement?

A tenancy agreement is a contract signed by both the tenant and the landlord. It outlines all the rules to which both parties must comply.

What is a routine visit?

Your landlord or letting agent will regularly schedule visits to the property. They want to make sure that the property is being looked after and maintained in a good condition, and they’ll be looking for any maintenance issues.

Who is responsible for repairs?

The landlord is responsible for maintaining the property in a good state of repair. They will either take care of this directly, or do so via a letting agent – make sure you know who to go to when there’s a fault at the beginning of the tenancy. Check your ‘Welcome letter’ to find out what service level your landlord has. If it is Tenant Find or Rent Collect, then you will need to talk to your landlord directly. It it is Fully Managed then the agent will help. If you do damage to the property you are expected to cover the cost of putting this right.

Can i decorate or make changes to the property?

In most cases, a tenant can only decorate or make changes to the property with the express permission of the landlord. We recommend receiving this permission in writing.

What if i accidentally cause damage to the property?

Don’t worry – accidents happen. Tell whoever is responsible for the property maintenance (either the landlord or letting agent) as soon as possible. You will be expected to cover the cost of putting it right. Don’t try to ignore or hide damage because it could get worse, and it will only come out of your deposit at the end of the tenancy.

What if the landlord isn’t keeping to their side of the agreement?

If a tenant believes the landlord is not keeping to their side of the agreement – for instance, not maintaining the property in a fit state of repair – then the first thing the tenant should do is speak to their letting agent. The letting agent has a duty of care to the tenant, and may be able to help to resolve issues depending on the service type the landlord has with the agent. Look at your ‘Welcome letter’ to find out the service level of your landlord. Alternatively, a tenant can find independent advice from The Citizens Advice Bureau.

When can my landlord enter the property?

A landlord has to give the tenant notice before entering the property, unless it’s an emergency.

What if i want to end the tenancy?

If you are tied into a fixed term contract, you will be liable for the rent until the fixed term is finished. If you are no longer in a fixed term contract (ie. a rolling contract) your tenancy agreement will define the notice you need to give.

What if i can’t pay my rent?

It is always your responsibility to pay the rent, but circumstances change. What happens if you become unemployed or are unable to work due to sickness? The most important thing is not to let arrears pile up until they’re unmanageable. Speak to your landlord or letting agent and see if you can reschedule your payments. And don’t forget, you can get insured against sickness and unemployment to keep yourself protected.

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