Change can be daunting. Especially if you feel like you’re walking into the unknown. If you’re thinking about taking the step to move out of your family home and into rented accommodation, you might be a ‘pantser’ in which case you’re happy to wing it, and find out what things cost as you encounter them, but perhaps more likely you’re a ‘planner’ and want to know exactly what costs you need to budget for to take the leap into becoming a tenant.
How to work out how much your rent costs
There are two ways you’re likely to see rent advertised:
- PCM – per calendar month
- PW – per week
If you see a property advertised as PW, in order to find out how much you’ll be paying per month you normally need to take that figure, times it by 52 (weeks in a year), then divide it by 12 (months in a year)
So for example a flat advertised as £250 pw would be £1083.33 pcm, calculated as follows:
£250 x 52 = £13,000
£13,000 / 12 = £1083.33
How do deposits work?
When you’re signing the paperwork to move into a property, you’ll usually need to pay 1 month’s rent up front and then a deposit on top.
A deposit is paid to the landlord, but legally must be held in a protection scheme for the duration of your tenancy. This is taken so that if there are any damages at the end of the tenancy, the landlord is covered for any damages. If everything is tip top and ship shape, you’ll receive your whole deposit back when you move out.
How much you’ll pay for a deposit will vary, but there are maximum amounts. For properties with an annual rent below £50,000 you can be charged a maximum of 5 weeks worth of rent, and for properties with an annual rent over £50,000 you can be charged a maximum of 6 weeks worth of rent.
Some of our properties have ZERO DEPOSIT option where you can opt to buy an insurance policy – usually at the cost of 1 weeks’ rent – which you can read about HERE.
What is a holding deposit?
A holding deposit is something you may have to pay in order to reserve the property. The maximum this is allowed to be is 1 weeks’ rent, and it gets subtracted from the overall deposit amount when you’re at the stage of signing for the property.
Are there any other fees?
Since some new legislation was introduced back in 2019, there are now more stringent rules on what letting agents are allowed to charge for. It’s now illegal for agents to charge for tenant credit checks and referencing, tenancy renewals, immigration checks, or anything involved with admin at the start of a tenancy.
Information for tenants
If you want more information about renting, visit the tenants area of our website.