By clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.

Renting a home: what you need to know

From tenancy agreements to deposits, renting a home can be confusing. Here's what you need to know before you begin
Sam Wilson

Sam covers personal finance topics, from the best savings rates to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.

With around a fifth of households in the UK privately rented, the demand for the right rental home can be high - and so can the costs.

So, whether your lease is just about to run out, your landlord is selling up or you've been planning a fresh start for a while, it really pays to do your research before picking a new rental property.

Here, we detail what you need to know and the steps you need to take to choose the best rental home for you. 

Be more money savvy

free newsletter

Get a firmer grip on your finances with the expert tips in our Money newsletter – it's free weekly.

Unsubscribe whenever you want. Your data will be processed in accordance with our Privacy policy.

Check how much rent you can afford and set a budget

Renting is not a cheap process, and it's wise to make sure you're financially set before starting your search. 

Prices have rocketed in recent years, so you'll need to figure out your budget before you start considering properties.

Here are the costs to consider to secure a new rental property:

Monthly or weekly payments

Property costs will be advertised as 'pw' (per week) or 'pcm' (per calendar month) and you will normally have to pay your first month's rent in advance. 

Be careful not to calculate the monthly rent by multiplying the weekly charge by four. A typical month lasts longer than 28 days, so the extra days' rent you don't include will add up and could leave you budgeting less money than you need.

Some agreements also include bills within the rent, just make sure what's included and what you will have to pay yourself. 

Holding deposit

You might be asked to pay a holding deposit to reserve a rental property. 

Holding deposits are capped at one week's rent in England and Wales but are banned in Scotland. 

If you pay a holding deposit, it means that you're committed to renting the property and that the landlord is committed to renting the property to you, providing checks are successful. 

Tenancy deposit 

You'll also have to pay a tenancy deposit before moving into a new rental. 

In England, landlords can take up to five weeks' worth of rent or six weeks' if the cost of the rent is over £50,000 a year.

In Scotland, the limit is no more than two months' rent.

There’s no formal cap in Wales and Northern Ireland but tenants usually pay one month's rent as a tenancy deposit.

The money you pay acts as security during your tenancy, but must be protected (more on this later).

Decide if you want a furnished or unfurnished property

You probably know how many bedrooms you want and if you need a garden but a key choice to make - which will impact your budget - is to whether to go for a furnished or unfurnished rental property.

A furnished property should come with everything you need to live comfortably, including white goods such as a fridge and washing machine. It will also include other key items of furniture such as sofas, bed, drawers, dining tables and potentially kitchenware.

The advantages of opting for a furnished rental are:

  • Lower initial expenses -you won't need to pay to buy all of your furniture before moving in. Although it's worth noting might mean the cost of the rent or deposit could be more to cover the additional items included.
  • Convenient - you can move in quickly. You won't need to spend your time lugging large items between houses or setting up furniture. Great if you're a student or don't plan on staying in one place for too long.
  • No repair costs - depending on your agreement, most landlords will be in charge of repairing or replacing some of the main items in the home if furnished. For example, if the fridge breaks down due to general wear and tear the landlord would replace it.

While getting a furnished home is the simpler option, be aware of the disadvantages as well. The rent could be at a higher price as the landlord is supplying furniture, and you'll likely have to pay costs for damaging the furniture should you spill coffee on the sofa, for example.   

What's included in an unfurnished property will vary depending on the agent or landlord. Basic features such as a fridge and a cooker should come as standard but other items will need to be supplied by the tenant.

The advantages of opting for an unfurnished property are:

  • Cheaper rent - the rent and deposit could be lower if you opt for an unfurnished property because it's less hassle for the owner. You are also setting yourself up for your next property, whether you're planning to buy or rent.
  • Make it your own - some furnished properties are very basic and won't allow tenants to personalise the home with their own things.
  • Deposit deductions - the more furnishings in the home could mean the more likely you are to have costs deducted from your deposit for wear and tear.

Unfurnished properties also come with their disadvantages, so you need to weigh up which type of rental suits your needs. You will need to adjust your budget to make room for buying furniture and factor in more time in getting what you need.

Moving in and moving out will also prove to be more hassle with unfurnished homes as transporting your furniture can be complex and costly. 

Look for rental properties and arrange viewings

You can search for properties online through websites such as Rightmove and Zoopla but you might also want to use a letting agent to help you find a place.

Letting agents will advertise rental properties, arrange viewings and help negotiate the tenancy agreement. 

A perk of dealing with letting agents is they must be part of an approved redress scheme that can mediate in disputes between landlords and tenants. They must clearly state which scheme they are members of. The three government-backed schemes are:

  • The Property Ombudsman (TPO)
  • Ombudsman Services Property
  • Property Redress Scheme

Once you have a shortlist, see if you can arrange in person viewings. This will help you to inspect the property for mould or damp and check appliances are in good working order.

Be ready for credit and Right to Rent checks

In order to get an offer approved to rent a property, you will normally need to pass certain checks.

You will likely need to go through a credit check, so make sure your credit report is in good shape and doesn't contain errors.

Landlords in England must also check that all people aged 18 or over living in their property have the right to rent. This means you will need to have proof of your ID ready to hand over. Tenancies in Scotland, Wales and Northern Ireland are not subject to Right to Rent checks.

Make your money work harder

Get the best deals, avoid scams, and grow your savings with expert guidance. £4.99 a month or £49 a year, cancel any time.

Join Which? Money

Check your tenancy agreement

Once your offer has been accepted and you’ve passed the required checks, you should be able to sign a tenancy agreement.

A tenancy agreement is a contract between you and your landlord, which is put in place before the property is let out. It outlines both parties' rights, giving protection to the tenant and the landlord’s right to receive rent.

The type of agreement will depend on a number of factors, including the cost of rent and whether the landlord also lives in the property.

The main type of agreement most commonly used is an assured-shorthold tenancy agreement (AST). They are usually set for a fixed term of six months, a year or two years.

If you want to know more about what your contract should include, take a look at our in-depth guide on tenancy agreements.

Get proof that your deposit is protected

Once the contract is agreed upon, your landlord will likely require a security deposit from you. This covers the cost of any damage you make to the property while you live there, or any unpaid rent.

You will get your money back at the end of your tenancy if you have:

  • met the terms of your tenancy agreement
  • haven't damaged the property
  • paid your rent and bills

Your landlord must, by law, put your deposit in a government-approved tenancy deposit scheme (TDP) if you rent your home on an assured-shorthold tenancy.

The landlord is legally required to protect your deposit within 30 days of receiving it. They must also give you details of the scheme used, alongside information about your rights.

There are three deposit protection schemes in England and Wales:

  • Deposit Protection Service
  • MyDeposits
  • Tenancy Deposit Scheme

Your landlord will decide which scheme to use, but your deposit should be equally protected whichever one they choose.

Scotland and Northern Ireland operate separate schemes, but they work in the same way as detailed below. You can find out more on the Scottish and Northern Irish government websites.

If your landlord does not protect your deposit using a recognised scheme, or does not provide you with the required information, you could take them to court.

However, before taking court action, you should first write to your landlord to give them the chance to protect the deposit and/or to provide the information.

How to get your tenancy deposit back

At the end of a tenancy, provided you've stuck to the terms of your tenancy agreement, you haven't done any damage to the property, and you've paid all your rent and bills, you should be entitled to your full deposit back.

If you haven't met all of these terms, your landlord may wish to withhold some or all of your deposit to cover any costs they incur. If they need to repair damage you have made to the property, for example, you might not get your deposit back.

Your landlord must return your deposit within 10 days of you both agreeing on how much you’ll get back.

What happens to your deposit if there is a dispute?

As well as protecting your money during your tenancy, deposit protection schemes can help resolve disputes that arise between you and your landlord.

For example, if you think your landlord wants to withhold an unreasonably high amount of your deposit to cover their costs, you can complain to the scheme's dispute resolution service.

It will then investigate the facts and determine the dispute. If you use the dispute resolution service, you and your landlord must do what it recommends - its decision is generally final.

Again, once you and your landlord have agreed how much deposit you will be getting back, it must be returned to you within 10 days.

Living in your rented home

Having now moved in, there are rules and expectations for you to follow as a tenant.

What bills do I pay as a tenant?

As the contracted tenant, you must pay your rent. If it is more than 14 days late, you could be liable for a default fee. 

The default fee - which is limited by the Tenant Fees Act - is the outstanding rent amount, plus interest capped at 3% above the Bank of England base rate.

Failing to pay your rent could lead to eviction. Read our guide on what to do if you can't pay your rent if you are starting to struggle.

Most rental agreements (that don’t include bills) also state that the tenant is liable to pay all the utility bills, including: water, gas, electricity, council tax, TV licence and broadband. 

Who is responsible for upkeep and repairs on a rental property?

The landlord of every property has a legal duty of care to ensure the house they are renting out is kept to a certain standard. They must arrange an annual gas safety check and a five-yearly electrical safety check. 

The landlord is also responsible for repairs to:

  • the structure and exterior of the property, including walls, windows, external doors and stairs
  • drains, gutters and external pipes
  • basins, sinks, baths and toilets
  • gas appliances
  • electric wiring
  • heating and hot water.

If anything goes wrong in a property that the landlord is responsible for repairing, it's the tenant's obligation to tell them. If the landlord isn't informed, they are not liable to fix anything.

If repair work causes any damage to the house, the landlord is liable. If your home has mould or damp, more often than not, the landlord will be responsible for fixing it, but this may depend on what has caused the damp to occur.

It's always wise to speak to your landlord as soon as an issue arises - especially if it's a health and safety concern. If you speak to them on the phone, rather than by email, make sure you follow up with a formal notice in writing (usually by email) summarising your phone call. Always keep hold of any communication you send and receive - this will help if there are any future disputes about repairs not being completed.

Even if you're not particularly concerned about a fault or problem that arises, you should still report it. If you don't, you could find that money is deducted from your deposit at the end of the tenancy.

What is expected of the tenant?

As a tenant, you're usually responsible for the general upkeep of the property, such as changing light bulbs, unblocking sinks, gardening and cleaning. You are also responsible for fixing any damage that you or your visitors do to the property, and for repairing items that you've brought into the home yourself.

The agreement between a landlord and tenant will differ with each property, so it's vital that you carefully read your contract before signing it, so you're fully aware of what both parties are responsible for.

As a tenant, you should also consider securing insurance for your contents and belongings. The landlord will usually have insurance for the property, but it will not cover anything that belongs to you.

You must not take in a lodger or sublet the property without checking if you need permission from your landlord.

What is wear and tear?

Your contract may refer to 'wear and tear'. Tenants are not usually culpable for 'general wear and tear' in a domestic rental and should not be charged for these sorts of repairs. 

However, many landlord/tenant disputes during and at the end of tenancies arise from differing opinions as to what constitutes 'general wear and tear'. Landlords can withhold all or part of your deposit to repair damages that fall outside this category.

The law states that acceptable wear and tear is a 'reasonable use of the premises by the tenant and the ordinary operation of natural forces.' But unfortunately, there are no standard rules or a list of damages to follow.

A few things a landlord will consider when assessing damages include:

  • The number of tenants: a family of four will naturally create more wear and tear than a single occupant
  • The length of tenancy: if you have lived in the property for three years without any repairs then the general state of the home will be worse
  • Property condition: if the carpet was scuffed and the paint faded before moving in then it can only have got worse. Take pictures and record existing damage at the start of your tenancy.
  • Age and quality of individual items: a low-quality table that has been used for many years is more likely to have damage.

Can I remove items that are on the inventory?

An inventory is a document prepared by your landlord that lists items and describes the condition of the property before a new tenant moves in.

Try to avoid breaking, replacing or removing any items that are on the inventory as this could result in charges at the end of your tenancy.

If an item does break, report it as soon as possible. Keep records of repairs or replacements that have been agreed upon, along with any communications with your landlord.

If you don't want a piece of furniture in the property, it's best to ask for it to be removed before moving in. If you change your mind after moving in, you'll need to discuss it with your landlord. Don't just throw it out.

Can I decorate my rental property?

Making a rental property feel like home is important, especially if you plan on living there for a long period of time. However, there are certain things that you won't be able to do without the permission of your landlord - or at all.

Many landlords don't allow permanent changes to the house, but some might be happy for you to paint or make slight alterations that can be returned to how it was when you moved in. It's always worth asking.

With shorter lets, it might not be worthwhile, but for a longer tenancy agreement, it could be beneficial for both parties. Keeping the property fresh and updated will mean that the landlord won't have to do it themselves, while you can personalise your space too.

Always ask your landlord before doing any decorating. As you're likely to need to paint it back to white or cream at the end of your tenancy, it's wise to stick to light paint colours that will be easier to cover over. 

What happens at the end of a rental term?

There are three main options you can take when your fixed rental term comes to an end.

1. Let it become a rolling or periodic tenancy

If you continue living in the property after the fixed-term has ended and it has not been renewed, your tenancy will automatically become a periodic tenancy.

A periodic tenancy is a rolling contract which runs week-to-week or, more likely, month-to-month. It begins after your previous fixed-term ended. 

Under this new form of tenancy, all the same terms and conditions of the original agreement apply. It is ideal if you do not want to be tied into a new fixed-term and are planning on moving out soon.

You can usually end a periodic tenancy by giving your landlord one month's notice.

2. Renew your tenancy for a fixed term

You could have the option to renew your tenancy agreement for another fixed period of time, such as another 12 months.

You won't be charged a fee to renew your contract; however, the terms - such as your rent costs - may not be the same as in your original agreement.

3. Leave the tenancy

The end of your fixed-term is prime time to leave if you want to move on, as you won't be breaking your tenancy agreement.

Make sure to inform your landlord of your intention to leave at the end of your term before you're put onto a rolling contract.

Will my landlord increase my rent if I stay?

Landlords usually aren't allowed to increase your rent during the term covered by your tenancy agreement.

But when you come to renew your tenancy agreement, your landlord may want to increase your rent. 

Need a mortgage?

Find the best mortgage for you, with expert help provided by L&C Mortgages

Get advice now