What Costs Are Involved in Renting a House?
Renting your first space can feel like an exciting step toward independence. You can decorate your home and have your own rules. But before you pick out your new home, there are several costs to be aware of. Here are the costs involved in renting a house.
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Security Deposit
The first expense most renters encounter is the security deposit. This acts as an insurance policy for your landlord and typically equals one or two months’ rent. When you move out, the landlord will return this to you minus any necessary deductions for damage or unpaid rent.
First Month’s Rent
Another hidden initial cost in renting a house is the first month’s rent, due before move-in. Be prepared to pay the security deposit and first month’s rent upfront. This will help you get into the routine of paying rent and take a weight off your shoulders when purchasing furniture and other items upon move-in.
Application Fee and Credit Check
Most landlords and property managers require potential tenants to submit an application, which often comes with a fee of around 20 to 50 dollars. On top of the application, your property manager will likely conduct a credit check to ensure potential tenants are financially responsible. We recommend working on your credit before applying for an apartment or multi-family property. This way, you can potentially lower your deposit expense.
Renter’s Insurance
Most landlords require their tenants to have renter’s insurance to protect both the policyholder and the landlord in case of incidents like theft or property damage. Insurance requirements vary by location and landlord, so discussing this upfront is essential.
Maintenance and Repairs
You may be responsible for some maintenance and repair costs when renting a house. You’ll want to clarify with your landlord what they’ll cover and what falls under your responsibility. Examples include lawn care, pest control, and appliance maintenance or repairs.
Renting a house is exciting, but knowing the costs is necessary. By understanding the potential costs of renting a home, you can evaluate potential rental properties with your eyes wide open. Take the time to find the perfect fit for your budget and enjoy the journey of creating memories in your new home.
Monthly bills
On top of your personal outgoings, you will need to consider the ongoing monthly costs of renting a house, as this will significantly impact your budget. The amount you will spend each month will depend on your rental agreement. It is rare, but some rental agreements will include utilities and internet. However, this is not often the case anymore due to how much it can change every month and rising costs in general.
You may likely have to account for the rent, utilities, and the internet. Rent should be a set amount agreed upon before you move into the property. You will have to conduct research for a good internet provider in your area to see what has good speed and affordability to suit your budget. A good starting point is looking at Verizon Internet. You will then need to consider the gas, electric, and water utility bills per month.