Property renting is quite different across countries in experiences and procedures.
The USA and the UK, equal partners in mother tongue (sort of) are both rent-markets with different levels shaped by a variety of economic, social and legal factors.
Today the experts at LandlordBuyer give an in-depth look at the rental markets across both sides of the pond with USA versus UK!
Lease Terms and Agreements
USA
Leasing tends to have shorter lease terms and be more flexible in the USA.
Most normal lease agreements are only for one year, but also there is a month-to-month option.
For some renters, this kind of flexibility will be a huge bonus if you need to move around quite often for your job or other personal reasons.
Regular Lease Term:12 months
Flexibility: High, offering month-to-month options
A security deposit typically equal to one month’s rent (certain states may differ)
UK
In the UK a common approach is for very long lease terms on rentals. Most business centers offer 6 to 12 month lease terms, and a lot of renters decide for agreements-to permit long in the field at two or three years.
Renewals and extensions are regular, resulting in a more predictable agreement for landlords as well as renters.
Duration of Standard Lease: 6 to 12 months (longer terms are often used)
Flexibility: Medium with less monthly options
Security Deposits (usually equivalent to five weeks’ rent)
Living and Rent Cost
USA
Rent prices, like the cost of living in general, just don’t compare state to state as everyone is so scattershot varies all over America.
The biggest cities in the country — New York, San Francisco and Los Angeles to name a few– are among some of those with Baltimore ranked 10th.
In general, and according to Moneycorp the US has higher rents than in the UK overall – particularly in its major cities.
Average Rent in Major Cities: Much higher, with New York City on top
Utilities and Additional Payments: Frequently pay outdown to, boost the risk for living costs higher
UK
I have used London as a basis, since rental prices in the UK are even worse overall than those is USA.
In other cities besides London like Manchester, Birmingham and Glasgow which tenanting yields are relatively lower.
Average City Rent: Lower than major US cities, expect for in London.
Utilities and Additional Charges: Generally included in rent, especially if it is furnished
Tenant Rights and Protections
USA
Rent laws in the USA are predominantly state law, thus tenant rights can significantly differ because of this.
While there are some states that provide great protections for tenants, others heavily favour landlords.
You will find many tenant protections, such as security deposit laws or the right to a habitable dwelling and eviction procedures.
Flexibility: High; based on state laws
Typical safeguards: Safety deposit laws and regulations, permitted habits on the residence while residing presently there guidelines as well as methods
UK
While the types of protections for renters are as diverse as America itself, tenant rights laws within England have been more standardized and offer significant protection to those renting property.
Important safeguards comprise restrictions on rents, compulsory deposits and requiring landlords to retain the property2 in proper condition.
The Tenant Fees Act 2019 has also helped to boost tenant rights by outlawing the majority of letting fees.
Standardisation: Strong with uniform protections throughout the nation
Typical Protections: Rent control laws, deposit security systems, repair obligations
Real Estate: Property Management/Ownership
USA
The same is true for many rental properties in the USA, especially those located in major metros managed by powerful property management companies.
Such companies do all things starting from property maintenance and rent collection to tenant screening and lease agreements.
This creates a more businesslike approach that can also lend itself to be less personable at times.
Management: Usually large property management companies
Dominium: Bunch of rental properties owned by corps and investors
UK
This is different to many other countries, particularly those in the Anglo-Saxon world where renting tends to be more likely managed by a property investment corporation of one kind or another.
Such a system can result in more personal Landlord Tenant inter-relations. However what that also means is management quality can vary greatly.
Management: Generally by individual landlords or small property management companies
Owner: Generally single investors
The way a rental sector works in the USA or one of its states, and the UK is all based on locational specifics – landlord rights differing by law across each nation.
Cheaper major city living in the USA and more flexible lease terms, UK: better rental prices outside of London + stronger tenant protections.
Assessing these differences allows renters and landlords to be able to better understand what the market is like for them, which can result in an even smoother rental experience than they would have had otherwise.
Whether you are thinking about renting in the USA or the UK, having an awareness of these differences can save you some headaches and help ensure that you end up with a good place to live.
Pros and Cons of both markets While both have their merits, as fans you can navigate either market with your level of knowledge.
