Are you thinking about renting a property for the first time? It can be incredibly exciting, but you need to ensure you understand the financial and contractual commitment you are taking on.
During your search, you should be coming to terms with average rent prices in your area. However, it’s important to consider the additional costs that are also necessary as a private tenant.
In this guide, we’ll break down the usual outgoings that you should consider if you are to rent a property.
The most significant cost you need to consider is the rental price. This is the amount you pay to occupy the property and can be advertised as a “per month” or “per week” figure, depending on the letting agency or landlord.
This will be the largest expense of them all, so it should be instrumental in your search to find somewhere that is within your budget. Areas of the UK such as London and the South East have the highest average rental prices, whereas regions in the North typically have lower rates on average.
Bills and utilities
As a private tenant, you should be responsible for paying the bills and utilities that are associated with you living in the property. Some landlords may set these up and manage them for you, or you may have to set up accounts directly with third parties.
Most properties will need supplies of water, electricity and/or gas depending on the infrastructure. Energy consumption can be higher in the winter so your bills may fluctuate throughout the year.
Then you will need to pay Council Tax which goes towards waste management and emergency services, and potentially a TV licence if you want to watch terrestrial television.
Other essentials such as broadband must also be factored in and it’s recommended that you invest in the peace of mind that comes with renters insurance. The bills and utilities certainly add up, so include all of these in your budgeting.
Tenant Fees and Deposits
To secure a rental property you usually need to pay some sort of deposit and maybe additional tenancy fees to process the paperwork.
Deposits are held for the duration of a tenancy and returned if there is no damage when you move out. This is overseen by accredited deposit holding schemes which are protective for both the landlord and tenant. The amount could be as high as 6 weeks’ rent, so start preparing for that as soon as you can.
Furniture and Decorations
Once you move in, some properties will be unfurnished meaning that you have to invest in furniture, decorations and potentially white goods too.
Consider this in your property search because it may be more affordable to rent somewhere furnished at first, while you accumulate personal possessions.
There are many costs associated with renting, so keep these in mind while you’re looking for your new home. Ensure that you budget thoroughly to find the best place for you and your budget. Good luck!