The cost of renting is a bit of a hot topic. Prices are rising, London prices are extortionate… you’ve probably heard it all before… Let’s face it though, buying a house is a much more expensive endeavour and for many people, renting is their only option – at least for a little while. It’s not just the monthly rent payments that are a bit of a financial burden when it comes to renting. It’s important to know about the other costs involved beyond that regular direct debit so that you don’t get caught out when you begin renting.
What costs are involved with renting?
When you find a rental property, you’re expected to pay at least the first months rent upfront, so you need to have this saved and put to one side. This could be anything from £400 to £800, depending on your budget and location.
You’ll also need to give your new landlord a deposit. In case you aren’t aware, a deposit is a chunk of your money that is put away and protected by a tenancy deposit scheme for the duration of your tenancy. Once you move out of the property, the deposit is taken out of the tenancy deposit scheme and used to cover things like unpaid rent, damage to the property, missing items or any necessary professional cleaning costs. A deposit is usually the financial equivalent of 4-6 weeks rent so again, a pretty big cost that you’ll need to have tucked away ready.
It used to be the case that a prospective tenant would be charged an administration fee, a fee for getting references and a fee for the credit checks. As of June 2019, these fees were banned so there’s no need to worry about too many hidden extra costs. You can only be charged a fee by your landlord or letting agency if you are late with your rent payments, lose your keys, end your tenancy early, change your tenancy or possibly if you renew your tenancy.
What about bills?
The situation with bills differs a little from tenancy to tenancy. Some landlords may charge you a slightly higher fixed monthly rent price and this will include the price of your bills, typically gas and/or electricity and water. Other landlords will leave you to arrange and pay these yourself, which might seem like an inconvenience but could work out cheaper in the long-run.
You may find a landlord who is simply willing to cover the cost of contents insurance, and other landlords who’d prefer not to cover anything at all. If this is the case, you need to consider the price of council tax, your TV license and your broadband contract.
And on the subject of contents insurance, most – if not all – landlords will have a comprehensive landlord insurance policy that covers things in the property such as furniture and fittings. Anything that belongs to you however probably isn’t covered. It’s worth investing in tenants contents insurance so that your belongings are covered from things like fire and water damage too.
What should I check before committing to a rental house?
When you’ve found a potential rental property, it’s time to get your inspection head on to ensure that you’re not going to be hit with a load more costs later down the line. Firstly, who’s supplying your basic electrical goods? Whether a property is furnished or unfurnished, you should check what electrical goods are included in the price and what condition they’re in. This includes a kettle, toaster, microwave, fridge, freezer, oven, washing machine and dishwasher. Most of these items don’t come cheap if you were to buy them for yourself.
If any of these items are included and you get the chance to check them out, take a look at the condition of them. If it’s not looking good, you could negotiate with the landlord to have these cleaned or replaced before you move it. Take note of the general condition of the property. Check the guttering for moss and mould, the water pressure of the taps and shower, whether the doors and windows open and close smoothly and whether any locks work okay. It’s things like this that you might not discover until it’s too late so during your viewings is your chance to check everything out.
Anything else?
When you’re given your contract, it goes without saying that you should read it thoroughly and then read it again. Maybe three times for good measure. Within your contract, you should also be supplied with an inventory. This details all of the supplied furniture and appliances in the property – often with photos – as well as the current condition of the property.
An inventory will make your landlord’s life a lot easier when you come to move out and they need to distinguish between any damage and fair wear and tear. In case you didn’t know, fair wear and tear is reasonable ‘damage’ as a result of usage, such as worn carpets. If you do notice any stains on carpets or marks on walls before you move in, make sure that these are detailed on the inventory. If you don’t, your landlord might try and take these repair costs off your deposit thinking that they are your fault when you move out.
When you move into your new rental home, read the meters and update your suppliers to let them know. If you don’t do this, you could be liable for any usage before you moved in. And lastly – keep on top of the cleaning! Looking after the property means there shouldn’t be any long-term damage that can get taken off your deposit. Plus, you’ll always be ready for any last-minute inspections.
Beginning your renting journey is a really exciting time. Imagine – all that space and time just for yourself. Just make sure that you’re aware of all the costs involved so that you can be as prepared and ready as possible.
This is a collaborative post.
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