Rent

Renting lets people and businesses use property without buying it. The tenant pays rent, usually monthly, and the landlord remains the owner and is typically responsible for major repairs and the building's structure.

The terms are set out in a rental agreement or lease, which states the amount of rent, how often it is paid, how long the agreement lasts, whether and how the rent can rise, and the responsibilities of each side. Tenants usually pay a security deposit at the start, which is returned at the end if the property is left in good condition.

For example, a tenant might pay 1,200 a month for a flat on a one-year agreement, with a deposit of 2,400.

Renting and buying each have advantages. Renting offers flexibility, lower upfront costs and less responsibility for maintenance. Buying builds equity over time and protects against future rent increases, but requires a large deposit and ties up money. For many households, rent is their largest monthly expense, so it plays a central role in budgeting.