Being an adult is expensive, right? It seems like someone always wants money for something. It's no different with renting (though at least you get a shiny new home to live in), which has a fair few associated costs. Some of those are general living expenses like utilities; others relate to renting.
Before moving into your new home, you'll want to calculate your monthly costs so you can budget properly. Being on top of your finances will help pay the rent on time and free you up from financial pressures. Then all you need to think about is enjoying your humble abode.
We've put together this guide to help you budget as a renter, so you can ensure there's always money throughout your tenancy. Read on, and discover how to budget as a renter.
Initial rental costs
There are certain costs you need to factor in even before you move into your new place. These include:
- Holding deposit – up to one week's rent to secure the property before you move in (that one week is then deducted from the first month's rent)
- Security deposit – five week's rent, which is the standard security deposit. If your landlord offers a zero deposit, you may not need to pay five weeks and instead need to pay one week's worth of rent to the deposit scheme, which is non-refundable
- Moving costs – hiring a van or removals services
- First month's rent – the majority of landlord's ask for the first month's rent in advance
- Furniture – If you're moving into an unfurnished or part-furnished property, you may need to buy new furniture.
Once you have everything covered in regards to costs associated with moving in, you'll be well prepared to start enjoying your new rental home.
After moving into your new home, you will be responsible for paying certain monthly costs. These include things like utility bills, though there may be some cases where these are covered in the rent (it will be in your AST), council tax and broadband.
- Monthly rent
- Fuel bills (gas, electricity and water)
- TV and media services (broadband)
- Telephone costs (landline, mobile or both)
- Council tax
You may have to pay some or all of these costs. If you're a student, for example, you could be exempt from council tax. And if you live in a property without gas, you won't need to pay for gas bills. Rent is something that everyone will have to pay, however.
Possible additional costs
There could be some additional outgoings as well as the monthly costs you're required to pay. These include:
- Contents insurance
- TV licence
- Satellite tv and streaming subscriptions
- Gym memberships
- Food and household items
- Credit card or loan repayments
- Transport costs
When budgeting for your monthly outgoings, it's always important to include the costs you might not necessarily think about. You might look great in the mirror, but those gym memberships cost money.
Budgeting for your monthly costs
It's important to budget correctly for your monthly costs, as you don't want to fall behind on payments like the rent. Doing so can cause friction with your landlord and lead to more issues.
It's best to do your calculations before you move into the home, and you can always use a budget calculator to make sure you have enough finances. It's better to be prepared so you can cover the monthly costs associated with renting without finding yourself in financial trouble.
Understanding your outgoings
As long as you understand what needs paying for monthly, you should be able to budget appropriately. And once you know your outgoings, you can focus on living in your new home and enjoying the good times ahead.