The number of people renting in the UK is higher than it has ever been. Tenants paid a record £51.6 billion in rent in 2022, more than double the £22.6 billion they had paid in 2012 a decade earlier. According to a recent YouGov study of tenants and investors, this trend is expected to keep going, and by 2025, 19% of UK households were renting privately. Renters will find it increasingly important to know how to rent safely and wisely as more and more people enter the renting market. You can use the helpful tips we’ve prepared below to stay on top of your rent payments and out of debt.
Set up automatic payments
By automating rent payments, you can create positive habits from the very beginning of your tenancy agreement. To ensure that you always pay your rent on time (ideally before it’s due, just to be safe), set up a direct debit from your bank account before it’s due. As you do not want to be in rent arrears, this is easier than manually transferring money each month and considerably lowers the likelihood that you will forget to do so. When creating your monthly budget, remember the day your rent money will be taken out of your account.
Arrange your rent payment
Your payment date and the day your rent is due will likely not change from month to month. The ability to arrange rent payments to be deducted after you are paid but always prior to your rent due makes budgeting a lot simpler. Even if you consistently pay rent one day after the due date, paying rent late will reflect poorly on your rental history and may cause you to lose future renting opportunities. Maintaining a good rental reputation is crucial now more than ever because renting is becoming an increasingly popular option for many people in the UK.
Speak with your Landlord or Letting Agency to negotiate
Don’t be afraid to talk to your landlord or renting agency if you want to move the date your rent is due to a more manageable time for your finances. You should decide on the best and most dependable time to make and receive rent payments; this is in both of your best interests. Even if you struggle to make rent payments on time, starting a conversation early is much more preferable to delaying the issue, and makes it much simpler to fix any further issues that may arise in the future.
Boosting your credit score
There is a free programme that enables private tenants to boost their credit score continuously if they consistently pay their rent on time. The Rental Exchange Scheme was introduced in 2016 as a partnership between Big Issue Invest and Experian. Although the programme is free, you must obtain your landlord’s or letting agent’s permission before enrolling. Please visit the Credit Ladder website for additional details and to register.
Track and manage your bills using applications
You can create reminders for your bills and rent using a variety of iOS and Android applications, ensuring that you never forget to make a payment. Payments to landlords or letting agencies can be made quickly and conveniently via apps like PayPal, Square Cash, and Google Pay, and you can always access a useful paper trail of payments. Additionally, these apps make it simple for tenants in joint tenancies to handle their combined rent and other utilities obligations.
Cut back on other spending
You might find areas where you can make savings without suffering too much by making a list of your monthly spending. Do you pay for memberships that you hardly ever use? Are you overspending on nights out or new clothes? Or how about your rental home? Do you know if you are using the most affordable plans for all of your household expenses? Speak once more with your landlord or letting agent. If you pay the utility provider directly as a renter, you have the freedom to move service providers; just be sure to contact your landlord to let them know beforehand!