Renting a new home, whether it’s your first rental home or one of numerous, can be exhilarating. However, in the middle of the flurry of applications and packing, it’s easy to miss all the extra costs linked to that fresh set of keys. From utilities and security deposits to having the proper insurance, expenses can quickly add up.
The positive aspect is that a little advance planning will help you prevent any unpleasant surprises. Actually, with a detailed rental budget, you can concentrate on appreciating your new place without thinking about money. Let’s take a deeper look at what you need to learn about the cost of renting, utilities for renters, and so on.
Security Deposit Explained: Be Prepared Upfront
When you rent a new home, you’ll almost always be required to pay a security deposit. This might be a large upfront expense, perhaps exceeding your first month’s rent. But why is that, exactly? At large, a security deposit is a sum of money a renter pays upfront. This deposit is not similar to rent; it is kept in a separate account by your landlord. The reason for a security deposit is to protect the landlord from monetary loss in the event of property damage or additional costs.
For single-family homes, the amount of a security deposit is typically equivalent to one or two months’ rent. For apartments, it may be the same or lower. You need to understand that a security deposit typically cannot be used to cover your last month’s rent.
In addition, several leases will include a clause suggesting that if you break your lease agreement, you will forfeit your deposit. That can be hard if unforeseen life changes occur.
Fortunately, in several circumstances, you can get your security deposit back if you treat your rental well and fulfill the terms of your lease.
To guarantee you maximize your refund, you need to conduct a thorough walk-through when you move in. Take photos of the entire property, noting any current damage, and then do everything you can to keep the place clean and in good shape while you live there. When you move out, deep clean the home and address any small issues. These methods can help you get all or most of your security deposit back.
Know the True Cost of Renting a Home
While the amount of your monthly rent might be the primary number in your budget, it is not the only one. To figure out the real cost of renting, you must consider any extra expenses related to your new rental home. For illustration, numerous rental homes may ask you to cover trash collection fees, purchase parking permits, spend on lawn care, or cover some maintenance costs. The kinds of fees and expenses you’ll be responsible for will vary, and may depend on whether you’ve rented an apartment, a single-family home, or another type of property.
Before you sign your lease, don’t forget to ask your landlord about any fees you’ll be liable for. Get a complete list, ideally in written form, so you can build a realistic rental budget. In this manner, you will understand precisely how much it will cost to stay in your rental home each month. And when you know exactly what to expect, you’re less likely to be caught off guard when that first bill arrives.
Utilities for Renters: What to Expect and How to Save
In addition to your rent payment, one of the biggest monthly expenses renters face is utilities. Although utility costs and expectations may differ – some apartments may include utilities in the rent, for illustration – mostly, utilities for renters usually involve expenses for electricity, water, gas, internet, and sometimes trash or sewer services. These prices can vary greatly depending on where you live and the energy efficiency of your home. As a result, it’s important to ask your landlord which utilities are included in the rent and which ones you’ll need to cover yourself. These replies will help you plan your budget more accurately.
If you have to pay for all utilities yourself, there’s a lot you can do to save money. For illustration, search for methods to reduce energy use. Purchase LED light bulbs, unplug electronics that aren’t in use, and adjust the thermostat when you’re away. Even minor methods like this can result in significant savings in the future!
Don’t Forget About Renter’s Insurance
Another important aspect of budgeting for your rental home is incorporating the expense of renters’ insurance. The majority of renters’ insurance usually covers your personal belongings, liability in case someone gets hurt at your place, and sometimes even living expenses if your rental becomes uninhabitable. Some landlords require renters’ insurance, while others do not. Yet, it’s always advisable to have a renter’s policy to help safeguard you from serious incidents.
The cost of renters’ insurance is often reasonably priced, ranging from $10 to $25 per month. If you have a car, you may be able to add renter’s insurance to your auto insurance policy at a fair cost. In any case, look around for the best rates and then make sure to factor the monthly premium into your rental budget.
Budget Smarter, Live Better
Recognizing the actual cost of renting a home enables you to dedicate more time to enjoying your new surroundings. Actually, a smart rental budget can help you feel prepared and secure in dealing with whatever comes your way.
Real Property Management Keystone can help you find a home in the Mt. Lebanon area that suits what you can afford. Allow us to assist you in ensuring a seamless rental experience.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
