People need or want to rent a home for many reasons - and it's not always down to high sold property prices keeping them off the housing ladder. The need for short-term or flexible living arrangements prompts many to look to the rental sector, as does the need for somewhere to live while saving for a deposit.
Unfortunately, securing a rental property can be hard for many reasons. And currently, in Scotland, one of those reasons is supply and demand. Estate agents across the country are reporting rising demand at the same time as the number of available properties falls. Some areas are experiencing declines of over 60 per cent in homes up for rent. What's more, this general trend is not confined to cities, the traditional stronghold for many landlords. It's also evident in towns and villages. Whether urban or more rural, areas near universities have experienced particularly high demand as students returned for in-person learning - and frequently did so later than in pre-pandemic times.
For landlords, on the whole, this picture is good news. Yields are up, especially for larger properties, and average rents across the entire residential rental sector are now £906 per month. Meanwhile, potential void periods are down: a typical rental home is now snapped up within 14 days, compared to 27 last year. The change is even more marked in some areas: for instance, family-sized homes (especially three- and four-beds) in Glasgow and Aberdeen are currently letting an average of three weeks faster than at the same time last year.
For tenants, however, the situation is less rosy. With sold property prices in Scotland predicted to rise by as much as 20 per cent by 2024, fears that landlords may choose to exit the rental sector might not be unfounded. Anecdotal reports from estate agents suggest that some, already feeling under pressure from anti-landlord rhetoric, are looking increasingly closely at this option. So how can you secure a home in such a crowded, precarious market?
1. The Fundamentals
(a) Unlike the situation south of the border in England and Wales, landlords in Scotland are not obliged to run immigration checks on prospective tenants.
(b) As a tenant in Scotland, in most circumstances you also have the right not to be discriminated against on the grounds of your disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex or sexual orientation. Discrimination can take many forms. For example:
- refusing to let a property to you;
- higher rents than a landlord's other tenants in the same or a comparable property;
- worse terms in your tenancy agreement than the landlord's other tenants in the same or a comparable property;
- giving you different access to the property's facilities (for example, the garden) than other tenants;
- harassing or evicting you because of a protected characteristic;
- refusing to conduct repairs on the property because of a protected characteristic;
- refusing to make reasonable changes to a property or tenancy agreement that would have permitted a disabled person to live in the property.
Of course, proving suspected discrimination can be challenging and expensive, but it's always worth discussing the problem with someone like Citizens Advice before deciding just to look elsewhere.
2. Budgeting for a Tenancy
Although renting brings a flexibility that's missing from home ownership and does not require you to jump through the same sort of financial hoops as a mortgage applicant, it has its own costs. Knowing what you can afford to pay per month is essential - and this isn't just rent: it's also council tax and utility bills (although some of the latter are sometimes included in rent). You'll also need to budget for a deposit, which will be required as an upfront lump sum.
Some landlords ask for a guarantor, so you might want to consider if there's anyone you could ask to fill this role for you.
3. What You're Looking For
Just as if you were buying a property, you'll need a list of "must-haves" and perhaps another of "nice-to-haves". Factors to consider might include:
- Location, especially as it relates to your place of work, public transport or school catchment areas.
- Size of property, especially number of bedrooms.
- Bathrooms. For instance, do you need downstairs facilities for anyone with mobility issues?
- Outside space. Do you want or need a garden or are you happy with using municipal spaces?
- Pets. Many landlords are reluctant to let properties to pet-owners, especially if those pets are cats or dogs. Those that are willing may ask for a higher deposit to cover potential damage or a more thorough post-tenancy clean.
- Utility space. In particular, is there room to dry clothes?
- Sub-letting. Is this permitted?
4. Private Renting Vs Renting Through an Agency
It can be tempting to rent a property through a private landlord, especially if you happen across a good deal. And while this can work very well, many people prefer the additional level of security that's offered by renting through an agency. This is because agents will be registered with a trade body, such as the National Association of Estate Agents, which gives you better leverage in the event of any problem. Maintenance issues are also perhaps more likely to be resolved speedily in properties let out and managed by agents. On the flip side, renting through an agency is often more expensive and is less likely to be an option if you're looking for a room in a shared house.
5. And Finally..
In today's market, the key to finding your perfect rental home often comes down to planning and speed. This is particularly true in the most popular residential areas and in neighbourhoods around universities. Registering with agents can get you in the ground floor, making it more likely that you'll be notified if a suitable property comes up for rent. However, there's no substitute for being proactive and also doing your own research. Then, when something of interest does pop up, arrange a viewing as soon as possible.
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