Many people are renting for longer, so it is a good idea to get in to the game on a good footing, and to really have yourself sorted right from the off. With many first time renters being uni students, or just-grads, it is easy to just fall in to the process of renting, which is fine, but you don’t really learn much about doing it properly, or getting yourself a good deal! The issue of course for first time renters is that the land lord is in a huge position of power. Properties are not cheap, but they are in great demand, and this means that you are at the land lord’s mercy form the moment that you express interest, especially in urban areas. Having a good knowledge of the process means that you simply have more tools in your belt to be able to get a good deal in the end, and that is why an overview may prove useful!
For a start, you need to have a strict budget in place. It may be disheartening, looking around properties that you know you can’t really afford, but if you are able to keep yourself afloat for long enough, you will find a place that suits both your needs and your finances. Do not let yourself get carried away by any means, you may enjoy the place for the first couple of months, but if you are overspending, then the lack of money that you will have post-rent each month will start to become depressing! Think about your break clause, and how long that will tie you in for; can you afford to be paying that much for that long? What would happen if you lost your job three months down the line? It is easy to get excited by the prospect of a new place, and the freedom that it represents, but the reality is that it is a massive responsibility, and a massive amount of money leaving your bank account every month! Be aware of the council tax, bills and any other extras that you will be taking on, as well as the fact that a big chunk will go on the deposit, which you will obviously not be getting back until you have left the place!
The break clause is the length of time that the contract is in effect for before you are allowed to leave the place. Whilst you may be signing a three year lease, the break clause may well be six months, meaning that whilst the rent will not go up for three years, you are only tied in to paying that rent for six months. You can use these two factors to get your initial rent down, but be aware of the long term implications of doing so. A long contract at a price that you can afford is a good thing, as it means that you are settled in at an amount that you can afford for a longer time. However, the attractive part for the land lord is the break clause, as it means that you are not going anywhere, and that means a guaranteed income for a long time for them. The offer that you make needs to be based on how much you can afford, and for how long you can afford it. You will find that the lower you offer, the more likely the break clause is going to match the length of the contract.