Renting a new home can be fascinating, whether it’s your first rental home or one of many. But with all the applications and packing that goes along with getting new keys, it is easy to forget about all the extra costs that come with them. From utilities and security deposits to having the proper insurance, expenses can quickly add up.
Making advance planning can help you escape many unpleasant surprises, which is good news. In fact, if you make a detailed rental budget, you won’t have to worry about money and can just enjoy your new place. Here’s what you need to know 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 have to pay a security deposit. This can be a major upfront expense, sometimes above your first month’s rent. But why is that really the case? On the whole, a security deposit is a sum of money a renter pays upfront. This deposit cannot be considered the same as rent; it is held in a separate account by your landlord. A security deposit was created to protect the landlord from losing money in the event of property damage or other costs.
For single-family homes, the amount of a security deposit is often approximately one or two months’ rent. For apartments, it may be the same or less. It is critical to know that a security deposit typically cannot be used to cover your last month’s rent.
Another thing that many leases will include a clause that says if you break your lease agreement, you will forfeit your deposit. That can be hard if things in your life change quickly.
Thankfully, in several cases, you can get your security deposit back if you take good care of your rental and fulfill the terms of your lease.
To guarantee you maximize your refund, make certain to perform a thorough walk-through when you move in. Take photos of the entire property, including any destruction that’s already there. Then, while you live there, do the best you can to keep the place clean and in good shape. Before you leave, deep clean the home and fix any small problems. You can get all or most of your security deposit back if you follow these steps.
Know the True Cost of Renting a Home
While the amount of your monthly rent might be the most significant number in your budget, it is not the only one. To calculate the real cost of renting, you’ll need to include all other expenses related to your new rental home. For example, many rental homes may require you to pay trash collection fees, buy parking permits, pay for 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, make sure to ask your landlord about any fees you’ll have to pay. Get a full list, preferably in writing, so you can establish a realistic rental budget. In this way, you will understand exactly how much it will cost to stay in your rental home each month. And when you know exactly what to expect, you are also less likely to be surprised when that first bill arrives.
Utilities for Renters: What to Expect and How to Save
Along with rent payment, one of the biggest monthly expenses renters face is utilities. There are different utility costs and expectations. For illustration, some apartments may include utilities in the rent. However, utilities for renters typically include expenses for electricity, water, gas, internet, and sometimes trash or sewer services. This price range can change a lot depending on where you live and the energy efficiency of your home. Due to this, you should ask your landlord which utilities are included in the rent and which ones you’ll need to cover yourself. The following responses will help you plan your budget more accurately.
There are many things you can do to save money if you pay for all your own utilities. For instance, try to find ways to reduce energy use. Add LED light bulbs, unplug electronics you’re not using, and adjust the thermostat when you’re away. Even small strategies like these can add up to significant savings in the long run!
Don’t Forget About Renter’s Insurance
Another essential component of budgeting for your rental home is adding the cost of renters’ insurance. Most renters’ insurance typically protects your personal belongings, your responsibility when somebody gets hurt at your place, and sometimes even living expenses if your rental becomes uninhabitable. Some landlords require renters’ insurance, while others do not. But it’s always an excellent plan to have a renter’s policy to protect you if something bad does happen.
The cost of renters’ insurance is usually not too expensive, 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 for a fair price. In either case, look around for the best rates and make sure that the monthly premium is part of your rental budget.
Budget Smarter, Live Better
You can devote more time appreciating your new home if you know the actual cost of renting a home. Furthermore, a smart rental budget can help you feel ready for anything that might happen.
Real Property Management Last Frontier can help you find a home in the Chugiak area that matches your income and means. Let us help make your rental experience as easy as possible.
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.
