How to financially prepare before renting a home

Renting a new home is no easy task. There is so much that goes into shortlisting places, choosing the one that fits within your budget, saving up enough money to pay a security deposit and then negotiating with the landlord to secure a good deal to save some money on rent. Phew, it’s quite an ordeal! So, how do you financially prepare before renting a home?

Preparing with your finances

Start saving in advance to actually be able to pay the security deposit. The security deposit in the UK is usually 5 weeks rent, which needs to be paid upfront. But before you can even consider paying this amount, a Letting Agent could run your credit score and if your credit score isn’t meeting requirements, the landlord could reject your rent application. It’s best to start working on your credit score at least 8 to 12 months in advance. This means you need to make all your credit card payments and utility payments on time and pay off any pending debts, all while keeping some money aside to pay the rental deposit. 

It’s even more difficult if you’re already renting a property. You’ve probably paid a deposit amount, which may not be immediately refunded by your landlord. By the time you end up getting that deposit back, you might be well into your first month of living in your new rented home. So you already have some money tied up, and you must arrange for another large sum to pay the new rental deposit.

There could also be a holding fee that some tenants might be charged to hold the place while you’re preparing to move in. Usually, this fee isn’t too high – just around one week’s rent and it is adjusted in the security deposit. But, you still need to have the cash on you to pay for it! And, of course, you’re going to have to pay the first month’s rent upfront. 

Alternatives to cash deposits

If only there was a way for you to not have to put aside such a large amount of money! Well, have you ever considered the possibility of using a Zero Deposit™ Guarantee? With the Zero Deposit Guarantee, you only have to pay one week’s rent as the security deposit and you are protected. All you need to do is save up one week’s rent as a deposit – as simple and easy as that! 

This no deposit scheme makes renting much more affordable, especially for students or working individuals who are on a tight budget. This can also help you free up enough money for you to not worry about day-to-day expenses, and you most certainly don’t need to worry about whether or not you’re going to get your security deposit back. All disputes are handled by TDS, so you can be certain that any dispute will have a fair outcome. Think of this as stress-free renting without burning a hole in your pockets. A win-win situation for everyone! And yes, this works if you’re mid tenancy too! 

Find out more at zerodeposit.com