We often associate high moving costs with buying a property, with stamp duty, survey’s, solicitors fee’s and moving costs all hiking up the price, but renters are equally finding themselves paying a premium when it comes to moving house. Here are the top 5 costs to consider bearing in mind when renting a property.
- Deposit: One of the first things you will need to ask the cost of is the deposit, how much the landlord or letting agent require and when they need it. Deposits are usually required before you take over the tenancy and today are equal to the cost of a month and a half of rent. This deposit is then placed in the Deposit Protection Service by your landlord or letting agent, protecting both parties. Your landlord or letting agent will let you know how much deposit is required to secure the property along with providing you with details on where the money will be securely held throughout the duration of your tenancy. For example, on a rental property of £900 pcm you will usually be looking at a deposit of around £1,350. Providing you both agree this money will be released back to you within 10 days after agreement at the end of your tenancy.
- Administration Fees: All letting agents have associated costs when renting a property and these usually cover things like credit checks, administration costs and the cost of drawing up a contract. These payments will have to be paid before the tenancy commences, usually at the same time as your deposit and this usually allows the agent or landlord to start the ball rolling to get the administrative side of things ready for you. These fees are usually per person listed on the tenancy agreement and usually amount to £200 - £300 in total.
- Rent in advance: On the day you move in you will need to have available the money to pay your first month’s rent, and this often needs to be in cleared funds so they may ask for this a few days before your official moving in date.
- Moving costs: Unless you own your own van you are probably going to come across some costs to move home, from boxes to van hire, or even to hire professional movers to come in and do it for you.
- Accessories to get you started: If this is your first time living away from your parents’ home you will need to get yourself some home accessories or even some furniture. Save pennies here by checking out sites like Freecycle where you can get many items free from people who are giving them away. This can drastically reduce the cost of furnishing if you are just starting out.
Even with just the basic requirements to rent the property, on a monthly rent of £900pcm you would be looking at a one off outgoing of £2,550. If you are currently renting a property as well you will be paying for your current months’ rent there, making the cost of moving between rented accommodations particularly extortionate, especially when you need to pay out a large sum of money without receiving your old deposit back until you have moved out. It is easily to look at the rental cost of a property and think “I can afford that monthly”, but when you are moving into a new property the costs really start to rack up.