A survey by Zoopla has discovered that across the UK, renters are wildly underestimating their monthly household outgoings - by nearly £600 every month!
The survey showed that whilst the average monthly outgoings come in at around £1,820, a third of the 2,700 respondents admit to only budgeting around £1,220 – leaving them with a substantial shortfall every month.
The scary fact emerged that one-in-three Britons have no idea of the monthly costs that mount up when you are running an average home, with the older and youngest generation the most unaware. Nearly 45% of over-70s and 42% of respondents in their 20's admitted that they were not sure of their monthly bills, and couldn’t be sure of the running costs of their property.
Part of the confusion was put down to fluctuating running costs, with over 20% of respondents admitting that these confuse their finances on a monthly basis. However, even simplifying the issue with monthly direct debits doesn’t seem to help - nearly 10% of people admit that they don’t pay any attention to what comes out of their account!
With so many people admitting to not fully understanding their monthly finances, it is no surprise that many landlords have had the frustrating experience of dealing with a tenant who finds it difficult to lay their hands on the rent every month.
Urban.co.uk recommend that all tenants undergo full referencing, in order to ensure that as a landlord, you have a full understanding of your potential tenant’s financial viability. Our referencing team undertake very comprehensive referencing checks on tenants, providing landlords with solid information which allows them to make a decision on whether or not to proceed with a tenant. The checks include a credit check, past employer checks, and a previous landlord check wherever possible.
Although you can never predict what will happen to your tenant’s finances in the future, it is wise to enter into a new tenancy agreement with your eyes wide open. It is vitally important that your tenant fully understands the financial requirements of them in order to take on your property, and you need to be confident that they are able to meet the bills every month.
For more information on Urban.co.uk’s referencing checks, contact the team at email@example.com, or on 0800 689 9955 for more information.
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