Getting your own place is one of the most exciting things you can do in life. It signals the shift towards real independence, fiscal autonomy and freedom to make a life which fits you best. Some of us have the luxury of being able to buy a home, but a great many of us choose to rent. Renting lets those of us without the funds to purchase a house live in comfort and happiness, but it doesn’t come for free.
Of course, monthly or quarterly rent will have to be paid, but those aren’t the only costs you’ll have to observe when renting a home. In this guide, we’ll share with you the upfront costs of renting a home, and some of the things which might trip you up as a new renter.
What are the upfront costs of renting a home?
Upfront costs will vary depending on where in the UK you’re renting a home and which agency you go through, but as a general rule, an £800 per month rent will likely cost the following up front:
- Six weeks rent as a deposit: roughly £1200 on an £800 per month rent.
- Your first months’ rent paid upfront: £800
- Administration fees: £200*
- Referencing fees: £60*
*This will vary between agencies
All in all, that will make your total outlay before moving in to the property £2,260. For a lot of us, that’s nothing to sniff at, and you should keep in mind these fees as you prepare to rent your first property.
What are the potential pitfalls of renting?
- Bills! Nobody likes them, but you’re going to need to think about them before you move in to your new home. You might have £800 a month budgeted to rent a home, but if you can’t afford the bills on top of that, you’re going to find yourself in trouble very quickly. As a rule, you should consider the costs of gas, electricity, water, council tax, TV licenses, landline phone bills, contents insurance and broadband. Oh, and if you like premium TV, factor that Sky subscription in too.
- Furniture is another key aspect of renting that many of us forget about. You might look around a fully furnished home, but it could be given to you unfurnished. Always speak with your landlord about whether your new home will be furnished, and if not, be prepared to purchase those furnishings.
- As a renter, your landlord might want to periodically check up on the state of their property. Keeping your home clean at all times and free from damage will not only please your landlord, but it’ll mean you don’t lose your deposit at the end of your term, which nobody likes.
- Read your contract. Your assured tenancy agreement is a key document that you should read closely before you sign anything, it might contain some nasty details which you don’t like the look of. It’s better to waste an hour reading a dry legal document than get burned later on.