Tenants are pressured into paying a year’s rent upfront – The DPS

Tenants are pressured into paying a year’s rent upfront – The DPS

0:03 AM, 27th September 2024, About 4 hours ago

Text Size

Tenants across the UK are facing increasing pressure to pay huge amounts of rent upfront to secure a property, according to a survey by The Deposit Protection Service (The DPS).

It questioned 2,210 tenants and found that six out of 10 respondents who have moved in the past year paid between two and three months’ rent upfront.

However, 8% of renters paid between four and six months, while 5% were required to pay a full year’s rent in advance.

‘Providing rent upfront to landlords’

The managing director at The DPS, Matt Trevett, said: “Our latest research shows how significant proportions of prospective tenants are providing rent upfront to landlords or letting agents.

“Tenants paying rents upfront should ask their landlords what impact this will have on their rental payments: typically, a landlord or letting agent who asks this does not charge for the equivalent amount towards the end of the tenancy, but tenants should always double check this is the case.”

He added: “Landlord and lettings agents should make it clear that tenants’ deposits, protected with independent third-party deposit scheme such as The DPS, are separate.”

23% provided proof of income

The survey also showed that to stand out from other applicants, nearly one in four tenants (23%) provided proof of income.

Also, many offered references (16% from previous employers, 15% from past landlords), rental history details (13%), guarantor information (9%) and personal details (4%).

Some potential tenants also offered photos of their current home (2%), or even images of themselves or loved ones (1%).

‘We don’t ask for rents upfront’

Kate Watts, of Robert Watts estate agents in Bradford, lets homes on behalf of 950 landlords in the area, and she said: “We don’t ask for rents upfront outside of deposits, but I can see how asking for additional rents would be a way for agents to differentiate between prospective tenants.

“The sheer demand for rental properties since the pandemic means that we see an average of twenty to thirty initial renters chasing one property.”

She adds: “Desperate renters will pay upfront rent, but tenants who do this should be aware they could struggle to afford rents later in the tenancy if they have no savings to cover unexpected bills or general cost-of-living increases.”


Share This Article


Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now