Additional Rental Considerations

When you wish to rent a property in the UK there are certain formalities in addition to signing the contract and ensuring that your pets are welcome. The main consideration for the landlord or letting agency is that you will be able to pay the rent that you have agreed to pay. For this reason it is usually important that you have a UK bank account, and some renters will specifically request tenants who are employed and have a regular income. If you do not have a high income you may still be allowed to rent the property if you have a guarantor. This is someone who agrees to pay the rent if you are unable to do so. Some renters ask to see financial references before you are allowed to sign the contract. These indicate your financial record and how reliable you are when paying your debts. 

It is important that you set up a UK bank account when you wish to rent a property. Often landlords and letting agencies will only accept rent payments as direct bank transfers. This avoids delays incurred waiting for cheques to clear and repeated trips to the bank to pay in cash. In addition to your rent payments, you will find it invaluable to have a UK bank account when you wish to pay utility bills. Many utility companies will offer you a discount on your bill if you pay by direct debit: a type of direct payment from your bank account. In order to open an account in the UK you will need some money to deposit and proof of your identity. If you have had your bank account for some time, the bank may even be able to act as a referee for your rental contract. 

References can be a deciding factor when applying for a rental contract. A landlord or letting agency will sometimes request a financial reference from a prospective tenant. This reference might detail your financial record with a bank or previous landlord; if you have a good record and have paid previous bills and rental payments on time, your reference will prove to your prospective landlord that you should be a reliable tenant. Since landlords and letting agencies often base their decision to authorise the rental on this reference, it is important that the reference is written by a professional and where possible that it reflects positively on your money management skills. References must be written by a professional who has enough knowledge of your finances to construct an accurate report and who has known you for a reasonable period of time. References cannot be written by family members. 

It is important that the prospective tenant will be able to pay the rent, and so many landlords prefer tenants to be employed. If you are a student you should be prepared to prove that you have suitable funds or financial support, perhaps from a parent, which will enable you to make the rent payments. If you are moving to the UK, you may find it useful to take proof of your employment with you when you wish to open a bank account or rent a property. This could take the form of a contract of employment, which would prove to your prospective landlord that you will have a regular income for the foreseeable future. For more information on moving to the UK see Initial Formalities. 

If you cannot prove that you have a secure income, if you have a low income or if you have a poor credit rating, the landlord or letting agency that you are dealing with may require you to name a guarantor. A guarantor is someone who will guarantee that the rent will be paid: if you cannot make one or more rent payments for whatever reason, the guarantor will pay the rent on your behalf. They act as your emergency bank, and the landlord's insurance that regardless of any changes in your circumstances they will receive their money. Similarly, if you leave the property and there are damages that must be paid for your guarantor will be responsible for covering the costs if you cannot.

Having a guarantor is a great advantage if you are uncertain about your financial future, but it is not a role which should be taken lightly. When you sign a rental agreement with a guarantor as security this guarantor is essentially signing the contract as well. The guarantor is liable if you are unable to pay: this is a huge obligation. Due to the nature of the role, only certain people will be acceptable as guarantors. Your guarantor must be in long-term steady employment and own their own home, which could be used as collateral (security to cover outstanding debts) if the guarantor fails to pay your debts.

If you are a student, it is likely that your parents will be your guarantors and wish to rent a property: you will not usually need a guarantor if you are planning to live in halls of residence. If you are moving to the UK, you may not be able to use a guarantor who lives abroad. If you have any, it may be worth asking UK family or friends to be your guarantor. Alternatively, explain the situation to your potential landlord and/or letting agency and ask if there is another type of security that they would accept.