Costs to consider when renting
With growing numbers of people having to rent their home, information on what to expect should be sought and followed.
Renting a property is not just a straightforward commitment to finding a property and then paying the rent - there's a whole host of questions that need to be answered first.
The biggest problem is that many people do not appreciate the costs that are involved with renting a property and it's crucial that tenants do not fall behind with their rent payments.
This means that the first task for anyone looking to rent is to work out what they can afford.
Renters should work out their costs
To do this they need to sit down and work out very carefully what the other outgoings and costs are going to be. Many people, especially those who are renting for the first time, do not realise how much the other bills are and how much they will have an impact on their disposable income.
Here's the list compiled by Property 192 to help you prepare for your life as a tenant.
- The most common household bills are going to be the council tax, you will have to register with the local council and pay the going rate for the valuation of the property. Essentially, the larger the property, the bigger the council tax bill will be.
- The tenant will also have to register for electricity and gas bills with a supplier and then arrange to pay either by direct debit or quarterly. It's also possible from the outset to have a prepayment meter fitted, though landlords are increasingly opting to install these anyway. Note – some properties will have oil fuelled central heating and therefore the costs of purchasing oil should be researched.
- Your property will also have a water bill, this is usually paid by the month, and you have to register your details with your water supplier.
- In addition, some rental properties will come with service charges to help cover the ground rent and the upkeep of the property itself. This is can be paid monthly or, more usually, annually.
- Many people who have never rented or lived alone before, may not be aware that they need to register for a TV licence and this is a fee that can be paid monthly, quarterly or annually.
- If you want a telephone line, a must if you also want broadband, then you'll need to have a landline fitted and they pay the connection charges and pay the bill monthly or quarterly.
- In addition to broadband and a telephone bill, as a tenant you may decide that you would like to subscribe to satellite television or digital TV. This is also an additional cost that will eat into your disposable monthly income.
- One bill that is often overlooked by tenants is to get contents insurance to help protect your valuables and ensure that should anything serious happen, then you have peace of mind coverage for having those items replaced.
When looking around a potential rental property by either the letting agent or the landlord, a tenant should not be shy about asking what the potential bills are going to be. If the tenant is already in there, then ask them directly.
The letting agent or landlord should have a rough idea of what these bills are likely to be and it's in their own interests that they get a tenant who can pay the rent and bills.
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