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With the rising house prices and increasing mortgage interest rates, more and more people are choosing to rent on a long-term basis. Renting provides an affordable living option for those who don’t want to be tied down with a mortgage or are not in the financial position to borrow large amounts of money.
If you are new to renting, the whole process might seem quite overwhelming. As simple as renting sounds, there are a number of steps that you need to take before you can secure a house or apartment to rent.
With the increasing competition amongst renters, it’s harder than ever to secure a great property before somebody grabs it. Most landlords and estate agents arrange several viewings in a single day so you need to act fast if you see a property that you like.
Here are three important things to know as a renter.
- Consider Rental Insurance
Just as landlords can get Landlord insurance, you can get insurance for a rental property as an ongoing tenant. Known as renters insurance or renters insurance, your policy will provide coverage for your belongings.
If your belongings are damaged in a fire, flawed, storm, or due to problems with your plumbing or electrical systems, your rental insurance provider will cover the associated costs. Similarly, your policy will cover your belongings in the event of theft or vandalism.
Rental insurance works like any other form of insurance. You will pay a monthly premium and make a claim as and when necessary to gain compensation.
- Take Your Long-Term Finances into Account
When you’re renting, you will pay a monthly fee to your landlord. It’s easy to think only in the short term when you signing a rental agreement.
However, if you are signing a contract that is several months long, you need to consider whether you will be able to afford your rental payments in the future.
If your job is stable and there is no chance that your finances will take a hit in the near future, you may feel confident in signing a rental contract. For those of you who are unable to show that you have a steady and stable income, the landlord may request that you get a guarantor.
A guarantor is somebody who can take over your rental payments if you are struggling to do so yourself. It protects the Landlord and ensures that they still receive your rental payments until you decide to leave the property.
- Set Up Your Utilities as Soon as You Move in
Most rental properties do not come with the bills included in the monthly fee. In most cases, you will need to pay for your utilities and council tax out of your own pocket.
If you are unsure whether the bills are included in your rental price, confirm this with your landlord. Should you be required to pay for the bills yourself, make sure to set up an account with a great utility provider as soon as you move into the property.