Managing the Cost of Rent as a Tenant in the UK

Paying for the roof above our heads is one of our biggest monthly expenses. And as the cost of rent continues to climb across the UK, many of us will be looking for ways to manage the increasing strain rent payments are having on our finances.

In this post we aim to offer some advice on how to negotiate with your landlord, how to better budget for your rent payments and some of the ways you can increase your bank balance to ensure that you have next months rent covered.

managing the cost of rent UK

Managing the Cost of Rent as a Tenant in the UK

WHAT DO DO IF YOU CAN’T AFFORD RENT?

If you can’t afford to make your next rent payment it’s time to explore what your options are.

If you have fallen behind on rent payments your landlord may try and evict you. This is called seeking possession. In some cases, even though they take you to court to evict you, they may agree to let you stay in the property as long as you agree to pay back the money you owe and you don’t fall behind with your rent again.

If you can’t cover the cost of rent and you’re unlikely to be able to afford it anytime soon you’ll need to look for an alternative living arrangement, apply for financial support or negotiate a lower rent agreement.

How manageable are your rent payments?

The first thing you need to look at is how manageable your current rental agreement is for your circumstances. If you’re just managing to get by each month or you’re getting yourself into further debt it’s time to reassess your living situation. Here’s some of the living situations you should consider:

  • Could you move back in with family?
  • Do you have a friend with a spare room that you could live in at a reduced cost?
  • Would moving into a house-share reduce the cost of rent?
  • Could you look for a cheaper property?

The sooner you find a more manageable living situation the better! Do your research now, look on local forums for spare rooms and ask family or friends if they’d be willing to help you out.

MAKE RENT PAYMENTS A PRIORITY

When you sign up to a new rental agreement they usually ask you if you have a payment date preference, choose the date that your salary is paid to you if you can. If you don’t get to pick your payment date, make sure that you’re putting the cost of rent aside as soon as you’re paid.

We all enjoy the luxuries in life but living costs come first. You could get into serious trouble if you don’t make your rent payments a priority.

If you can afford to, you should also aim to save up your rent payments in advance. I always aim to have saved 3 months of living expenses in the case of an emergency. This is called an emergency fund and can help you negotiate any financial hiccups.

Check to see if you’re eligible for financial support

If you’re in financial difficulties, you can get free help and advice. You may be able to get Universal Credit if you’re on a low income, out of work or you cannot work. See if you’re eligible for financial support to cover your rent.

You may be able to get Universal Credit if:

  • you’re on a low income or out of work
  • you and your partner have £16,000 or less in savings between you
  • you’re 18 or over (there are some exceptions if you’re 16 to 17)
  • you’re under State Pension age (or your partner is)
  • you live in the UK

If eligible, you could get money to help pay your housing costs. The payment can cover rent and some service charges. You can also ask for a hardship payment if you cannot pay for upcoming rent, heating or food payments.

Reduce Your Spending

There are lots of ways we can reduce the amount of money leaving our bank accounts each month. Start with non-essential spending. Cancel any subscription services that you don’t need (e.g. expensive gym memberships and entertainment packages). You’ll also want to quit any expensive habits (e.g. smoking, gambling and binge drinking). Then remove the temptation to spend by deleting shopping apps and unsubscribing from newsletters.

After you’ve stopped all your unnecessary spending its time to look at cutting the cost of your essential spending. Look at all your existing bills (e.g gas and electricity) and see if you’re able to get a better deal elsewhere. Next up assess your food bill, could you be getting your groceries cheaper elsewhere? Are you paying extra for expensive brands?

The best way to reduce your spending is to stop buying things that you don’t need and to pay less for the things that you do need. If you’re looking for more ways to save check out my most recommending money saving tools.

Negotiating the cost of rent with your landlord

Politely ask if the landlord is willing to discuss rent prices and when a good time to talk would be. A large property company is less likely to negotiate terms, while an independent landlord may be more likely to consider a small discount.

Remember that there are no guarantees when it comes to negotiating a discount on rent but it’s worth politely enquiring especially if it’s just for a temporary reduction.

Don’t bury your head in the sand when it comes to the cost of rent. The sooner you get ahead of your payments the better. Do you have any questions or concerns when it comes to covering the cost of your rent? Let me know in the comments below and I’ll try my best to answer them.

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