Information for Professionals

Rent and hidden costs

How much rent should I expect to pay?

Rent levels will inevitably vary dramatically depending on the type, quality and location of the accommodation you are seeking and the local market factors influencing an area. However, there will always be opportunities to secure a deal that my be better value for money than another and if you are interested in a particular area of the city you are advised to look at several properties before making a final decision on which one to take.

Whilst average rents are useful in providing a rough guide to anticipated rent levels the quality and amenity of each individual property will be the defining factor.

If your rent is determined as a weekly rent but you intend to pay it monthly, when calculating the amount of rent you pay monthly it is likely to be slightly more than four weeks' rent. For example, a weekly rent level of £57.00 will cost you £57.00 x 52 (the number of weeks in the year) which equals £2964. Divided by 12 (the number of months in the year), the monthly level works out at £247.00 (not £57.00 x 4 = £228.00).

Current average rent levels are displayed on the Unipol Netlet front page. You can also conduct a quick search of any particular street to see how your rent level compares with others available in the market.

Are owners ever prepared to negotiate the level of rent?

An owner's willingness to negotiate will be determined by overall market conditions especially the level of anticipated demand for a particular property. Whilst some owners may be reluctant to vary rent levels they may be prepared to carry out improvements to the house or install more facilities. There is however a surplus of good quality accommodation which puts you in a good bargaining position.

Whatever is agreed should be confirmed in writing by the owner, so there is no room for 'misunderstandings' or 'confusion' later.

Other costs not included in the rent

The rent charge does not usually include the cost of gas and electricity bills and neither does it include water charges and council tax. However, it is important to clarify this with the owner before agreeing to sign for the tenancy so that you are clear about what you are paying for.

Deposits

You will be expected to pay a deposit at the point when you sign up for the tenancy. This is usually the equivalent of one month’s rent and this will be refundable to you at the end of your tenancy as long as there are no costs for damage or outstanding rent arrears which qualify for deduction from your deposit payment. You can find out more on deposits here.

Other fees that landlords may charge

In some instances, prior to or at the point of you accepting a property from them, the landlord or agent may attempt to load the fees you pay. These fees can be described by terms such as administration fees, agency fees, booking fees or finder’s fees.

Under the Accommodation Act 1956 agents cannot charge money before the creation of a letting. It is a criminal offence to charge a fee to register or undertake to register the name and requirements of a person looking for accommodation or to charge for supplying names and addresses or other particulars of properties. A fee can only be charged when a contract has been agreed between the landlord and the tenants. Moreover any charge that is made may be challenged under the Office of Fair Trading’s (OFT) Unfair Contract Terms Regulations. Fees that are described as “non refundable” or contain ambiguous language are in conflict with the OFT regulations and the landlord can be made to strike the clauses out of the contract.

There is nothing to stop a landlord or their agent charging fees as long as they are up front about them and they include these fees in their marketing information. However, you always have the right to say “no” to the deal on offer and go elsewhere.