Renting a new home may be fun, whether it’s your first rental home or you’ve done it before. But amidst the whirlwind of applications and packing, it’s easy to forget about all the extra costs that come with getting those new keys. From utilities and security deposits to having the proper insurance, expenses can pile up rapidly.
The beneficial news is that a little advance planning can help you prevent any surprises you don’t want. Indeed, with a detailed rental budget, you won’t have to worry about money while you enjoy your new place. Let’s go over everything you need to know about the cost of renting, utilities for renters, and other things in greater detail.
Security Deposit Explained: Be Prepared Upfront
When you rent a new home, you are likely to have to pay a security deposit. This can be a significant upfront expense, sometimes surpassing your first month’s rent. But why is that, exactly? In most cases, a security deposit is an amount of cash a renter pays upfront. This deposit is different from your rent; it is kept in a separate account by your landlord. A security deposit aims to protect the landlord from losing money if property damage or other costs arise.
For single-family homes, the amount of a security deposit is usually equal to one or two months’ rent. It could be the same or less for apartments. It’s important to keep in mind that a security deposit typically cannot be used to cover your last month’s rent.
Moreover, several leases will include a clause affirming that if you break your lease agreement, you will forfeit your deposit. That might be hard if things in life change unexpectedly.
The bright side is that if you take proper care of your rental and fulfill the terms of your lease, you can often get your security deposit back.
To guarantee you maximize your refund, make sure to complete a thorough walk-through when you move in. Take photos of the entire property, including any damage that is already there. While you live there, make an effort to keep the place clean and in good shape. When you go, deep clean the home and solve any small problems. These techniques can help you get all or most of your security deposit back.
Know the True Cost of Renting a Home
Even though the amount of your monthly rent might be the most significant number in your budget, it is not the only one. To find out the real cost of renting, you need to add up all other expenses related to your new rental home. For instance, numerous rental homes may ask you to pay trash collection fees, purchase parking permits, pay for lawn care, or cover some maintenance costs. The types of fees and expenses you’ll be responsible for will be different, and may depend on whether you’ve rented an apartment, a single-family home, or another type of property.
Before you sign your lease, it is advisable to ask your landlord about any fees you’ll have to pay. Obtain an extensive list, ideally in writing, so you can make a realistic rental budget. In this manner, you’ll understand exactly how much it will cost to stay in your rental home each month. And when you know exactly what to expect, you won’t be as surprised when that first bill arrives.
Utilities for Renters: What to Expect and How to Save
On top of your rent payment, one of the main monthly expenses renters face is utilities. Utility costs and expectations can be different. For example, some apartments may include utilities in the rent. But in general, utilities for renters often contain expenses for electricity, water, gas, internet, and sometimes trash or sewer services. These prices can be very different depending on where you live and the energy efficiency of your home. Because of this, keep in mind to ask your landlord which utilities are included in the rent and which ones you’ll have to cover yourself. This information will help you plan your budget more accurately.
If you are accountable for all utilities yourself, there are plenty of ways to save money. For example, look for ways to reduce energy use. Install 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 over time!
Don’t Forget About Renter’s Insurance
Another important aspect of budgeting for your rental home is involving the cost of renters’ insurance. Most renters’ insurance usually protects your personal belongings, your liabilities if someone gets wounded at your residence, and sometimes even living expenses if your rental becomes uninhabitable. Some landlords require renters’ insurance, but others don’t. But it’s always recommended to have a renter’s policy, which will safeguard you from big problems.
The cost of renters’ insurance usually doesn’t cost much, 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 an acceptable cost. In either scenario, look around for the best rates and then ensure that you include the monthly premium in your rental budget.
Budget Smarter, Live Better
If you know the actual cost of renting a home, you can spend more time enjoying your new place. A smart rental budget might actually help you feel ready and confident to deal with everything that comes your way.
Real Property Management Premium can help you find a home in the Gonzales area that works with your budget and way of life. We want to help you have the best rental experience possible.
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