The country has been witnessing high rent increments since the financial crisis. It is due to the increased demand to rent and the low availability of rental homes. And as per current statistics, tenants spend about 50% of their income on rent. The percentage may jump to 60% anytime soon.
And this could be heartbreaking for the renters as renters with unmanaged or pending rental payments face eviction. This homelessness due to failure to keep up with the payments is rising in the country. Because of fear of eviction, many individuals skip the bare minimum requirements like food and medicines. It could turn devastating if one continues to thrive in that environment.
You must act wise if you wish to stay within the bills with costly medical treatment that comes with continuous stress and fear. Are you short of cash to pay rent by the month’s end? You can check out mainstream lenders for help. Sometimes, tenants cannot secure cash from them due to bad credit profiles and switch to a broker, only to return dissatisfied. It further complicates the problem. Here you have 2 solutions:
Try convincing your landlord to roll it over to next month.
If that does not work, facilities like very bad credit loans with no guarantor and no broker in the UK marketplace can help you instantly grab money. It helps you deal with the issue independently without involving any third person as a guarantor. Whether it is medical costs or bridging a rental income, you may secure it hassle-free.
It may be one option to check in extreme financial distress and requirement; you must take charge of your finances as a first-time renter.
How To Save Calculative as a Tenant?
If you are renting for the first time, things could be overwhelming. Whether budgeting or saving for your dreams, you must predict and plan finances accordingly. The blog is all about ensuring enough savings to stead past emergencies and uncomfortable financial issues. If you are a first-time tenant seeking solutions to unmanageable finances, this will help.
1) Determine the basics while renting
While thinking about renting a property, here are some major considerations to check out:
- Location and the price of rentals there
- Do you want it furnished or unfurnished?
- What is your budget?
- When do you plan to move in? Landlords generally want the tenant to move in within 1 month of the agreement.
- For what months do you want to rent? Minimum contract terms may vary.
These parameters help you decide on the money you need to move in and plan accordingly.
2) Take some time to visit rental locations
Never apply for a property without viewing it. Analyse different aspects before booking it. When scheduling your viewing plan, keep the following in mind:
- Book your viewing in advance- else you may have to reschedule owing to a packed schedule
- Avoid placing your viewing on Weekends; these are popular days
- Ask the landlord about the area and surrounding facilities
- Speak to the lead rental adviser about potential viewings
These help you decide on the right rental per your preferences and budget
3) Cover and save for initial renting costs
If you are checking rentals as a first-timer, you must take note of costs like- a deposit, up to 1 week’s rent, and a standard security deposit. The standard security deposit is generally 5-week rent, usually less than £50000.
And many landlords ask for the first month’s rent as an advance. So, discussing the requirements with the landlord is a deal. Check for the terms and conditions in the agreement before signing it off. It would help you avoid certain things prohibited by the landlord.
Make out a spreadsheet regarding the costs that come with renting a home. It is important even if you are renting it out for just a month or two. Here are some costs that you must budget for:
- Gas, electricity, and water
- Council tax (full-time students are exempted)
- Provide proof of income over 2.5 times the rent
4) Rent a house in sharing/ find a roommate
To some, especially married couples, sharing may not suit them, while students or unmarried employed individuals can think about this. Chances are, some landlords may be strictly against it. However, if there is no such restriction and you can share it with anyone, it could be profitable.
It would help you reduce 40% of the rental and the other costs associated with that (mentioned above). It is why many young professionals and students often look for a partner to split the cost of renting.
But before inviting someone to the agreement, conduct due diligence. You would not want problems to kick in from the first moving day. Research everything about the shortlisted person and decide whether he would align with your lifestyle or could be a problem.
5) Slash your outgoings to ensure a long stay
As a first-time buyer, you first must figure out your lifestyle. To do this, you must list your expenses, including the essentials required for survival.
Apart from sorting out the bills, gas, electric, and water bills, you must list the unexpected leisure expenses that your lifestyle covers. To maintain a good relationship with your landlord, you must ensure essential rental and these costs.
For example, if you miss rent consecutively for 2 months, your landlord may figure out ways to evict you. It may impact your relationship with your landlord. Also, missing the council tax may lead to court trials. And if you continue to miss your rental payment, it may drop your credit score too.
If you cannot arrange for the full rent and need money now urgently, tap some quick cash loans for help. These loans are same-day offerings and require just income proof to qualify. It helps settle the dues in no time- keeping the relationship intact with the landlord. Meanwhile, you must acquaint the landlord with your financial situation and the rental delay. It would grant you some more time to arrange for the money.
6) Check out the insurance policy
Though the landlord is responsible for the maximum number of things in a rental, it is ideal for safeguarding your finances with insurance coverage. It would help you cover any accidental damage, additional costs, etc., that you incur as a tenant on the property.
Here are some other tricks to save as a tenant:
- If you need to cover a small distance- walk instead of hiring a cab
- Shop for groceries online. Beware of impulse purchases
- Keep the electricity off when you are away