Tips for First Time Renters

If you are thinking about renting a property for the first time, the whole process can seem overwhelming, albeit exciting. It is important to make sure that you do not dive in headfirst, though, as any mistakes can be very costly. With that being said, read on for some tips that you will find helpful during your first renting experience.

Work out how much you can comfortably afford – This may sound like an obvious starting point, but you need to sit down and work out the maths. You are going to have bills to fund too and you need to add in your living costs. You should never simply guess; you will often find that things are more expensive than you realise when moving into a property. This is why you need to work out what you can comfortably afford, as you do not want your rental property to be a burden.

Scott Webb
Do a thorough walk-through – Renters are often less sceptical when viewing a house because they are not going to purchase it. However, you still need to be cautious. After all, you are going to be living in the property for at least a year in most cases, and so you need to be certain that is right for you. You also need to make sure that there is not any pre-existing damage. If there is, it must be noted, as you do not want to get accused of causing the damage when you leave.

Make sure you actually read the contract – Don’t just sign on the dotted line with little consideration for the words that are printed. You would be shocked by how many people do this. They assume that all contracts are the same. However, you need to be mindful of hidden and miscellaneous fees. You also need to have a look at the notice of lease termination to see whether the time stated is something you are comfortable with. Other important details that will be covered include subletting, rent increases, and move-in fees; so the contract definitely isn’t something to gloss over.

Don’t manage everything yourself – Last but not least, a lot of renters skip the process of seeking out professional assistance. They deem letting agents to be another added expense. But you are putting yourself at serious risk if you do not go down the professional route. Letting agents are there to ensure that you are covered should your landlord treat you unfairly. They will also keep the deposit in a protected scheme too. Renting privately possesses many risks, especially for first-time renters.

As you can see, there is a lot to take into consideration when renting a property for the first time. However, if you take into account the advice that has been provided, you should find the whole process a lot easier.


Why it’s not impossible to buy your first home

For first time buyers, the prospect of saving a deposit for a first home can seem impossible. In the last few years, house prices have risen meaning that buyers need to raise thousands of pounds in order to secure a mortgage. For many people, this dream seems unreachable and young couples often make the decision to continue renting rather than spend years scrimping and saving for a mortgage. But, what if it wasn’t as impossible as it looks?

Make a plan

The first step in reaching any goal is to make a plan. Take a look at some of the houses you’re interested in and find out what kind of deposit they require. It’s also worth looking into the amount of deposit you’ll need to secure a mortgage. You can use as little as 5% to get a mortgage but it may mean you have to pay increased interest rates, so it’s better to aim for at least 10% if possible. This will give you an idea of how much you need save. The figure you come up with may seem impossible, but it’s important to consider your options before giving up entirely.

Rowan Heuvel
Help to buy

When it comes to raising a deposit for a mortgage, you may not have to do it all by yourself. After all, banks want your business, so it’s in their interest to provide you with as much help as possible. Help for first time home buyers can come in many forms. You may want to consider applying for a help to buy scheme, where a 20% deposit is put down for you. However, you do have to keep in mind that the deposit is repayable, and you may also have to pay interest if your home is sold for a greater price in the future.

Get paid to save

Saving money in your regular current account is just heading for failure. Unless you’re ridiculously strict on what you spend, it’s likely you’ll dip into your savings every now and then if you’ve got easy access to them. Putting your savings in a separate account is much safer. Take a look at the savings accounts that will give you the best return. You may have to deposit a minimum amount every month and you may not be able to make any withdrawals for certain period, but the amount you gain will be worth it.

An understanding family member

If you’ve got a family member with a bit of extra cash floating around and they’re willing to give it to you as a deposit that you eventually pay back, you’re in luck! However, many people haven’t got that amount to give but it doesn’t mean they can’t help. Take a look at the new 0% deposit mortgage offered by the Post Office. They will give you 90% of the house value and secure the other 10% by placing it against a family members home. The downside is, if you fail to repay your mortgage on time, both you and your family member are in trouble.

Difficult, yes. Impossible, no.


Common Company Formation Mistakes to Avoid

If you have decided that you are going to form a company, there is a lot that needs to be considered. Needless to say, you will want your company to be a rousing success, and there are many elements that need to come together to make sure that this is the case. Firstly, you need to make sure that you form your company correctly to begin with. With that in mind, read on to discover some of the most common company formation mistakes that you need to avoid…

Typos – There is only one place to begin, and this is with typos! You are probably thinking that you would never be stupid enough to include typos in your application. Well, you would be surprised by how many people make this mistake. In fact, typos and misspellings are one of the most common errors made when supplying data to Companies House. This is relatively easy to fix, but you could end up needing to pay a fine to do so.

Issuing too many shares – Another common company formation mistakes is issuing too many shares. The vast majority of businesses formed have a small nominal amount of shares that have been issued at the time of corporation. For instance, a business that is owned by one person only may be registered with just one single £1 share. This is usually the way people go about it. However, there have been cases whereby people have issue a million £1 shares to a shareholder. They think this is a smart move, however, it is usually not advised. This is because you are heightening your liability of the shareholder, and so you need to think about how these shares are going to be accounted for or paid for. There is no simply fix when you create too many shares either, as this is not something that can just be reversed, so this is definitely a mistake you need to avoid to begin with.  

Incorrect supporting data – When it comes to company formation in the UK, you will be required to provide a number of documents that supports your application. This is where a lot of new business owners go wrong. They do not supply any data to go with their application, or the data they do supply is insufficient. When this happens, all you are doing is drawing out the process. It is best to supply as much data as possible.

Matthew Henry
Failing to register for corporation tax – As a business in the UK, there are a number of different taxes that you are going to be required to pay. One of these taxes is corporation tax, which is a tax on your profits. If you decide to start a private limited business, you must register for this type of tax within three months of forming your company. If you do not do this, then by law, you are not able to begin trading legally. What if you do not earn enough to ever pay corporation tax? Well, you still need to be registered for it!

Forming a limited by shares business instead of a not-for-profit company – If you are trying to launch a not-for-profit organisation, you need to register it as this, rather than a limited by shares business. A lot of people do the latter, but this means you have the intention of making a profit, so it is the wrong type of company. Moreover, you cannot swap between the two types of businesses, so you would actually need to strike off or dissolve the business you first registered, and then register a new business as a not-for-profit organisation.

Issuing shares to all directors – A lot of businesses have directors that are also shareholders. If this is the case, it is vital to separate the running of the business as a director from the owning of a business as a shareholder. A shareholder has rights within the business. These are the rights that are detailed by the Companies Act 2006. They can also profit from the sale of the company, receive distribution of profit by dividend, and they have voting rights at meetings. This is why you should only ever issue shares to people that you intend to ‘own’ a share in the company.

Appointing directors that are not the right age – This is something that a lot of parents tend to do when they are establishing their business. They want their daughter or son to be involved, and so they will put them as a director of the business. However, all company directors in the UK need to be at least 16-years-old. Your application will be rejected if you attempt to put a director that is not of legal age.

Choosing the wrong company address – Last but not least, your business address is more important than you probably realise. Whenever there is official communication between you and the UK government, this will be sent to the address in question. You can use your home address if this is more suitable. You do not need to choose the offices that you are operating your business out of. The only restriction is that it must be a physical address, it cannot be a virtual one, and it does need to be in the home country of the company.

As you can see, there are a lot of mistakes that business owners make when it comes to company formation. If you can avoid these errors when you are forming your business, you can give yourself a great chance of getting off to a smooth start. Good luck!