Renting a new home can be motivating, whether it’s your first rental home or just one of the many. But during the chaos of applications and packing, it’s easy not to see all the extra costs associated with that new set of keys. From utilities and security deposits to holding the proper insurance, spending can quickly add up.
The excellent news is that a bit of advance planning can really help you avoid any unpleasant surprises. In fact, with a detailed rental budget, you can just relax and enjoy your new place without stressing about money. Let’s check out what you need to learn about the cost of renting, utilities for renters, and more.
Security Deposit Explained: Be Prepared Upfront
When you rent a new home, it is important to pay a security deposit. This can be a pretty big upfront expense, sometimes exceeding your first month’s rent. So, what’s the reason for that? On the whole, a security deposit is basically the money a renter pays upfront. This deposit isn’t similar to rent; it is held in a separate account by your landlord. The goal of a security deposit is to protect the landlord from financial problems in the event of property damage or other expenses.
For single-family homes, the amount of a security deposit is typically matched by one or two months’ rent. For apartments, it could be about the same or even lower. It’s critical to remember that a security deposit typically cannot be used to cover your last month’s rent.
Additionally, many leases will include a clause stating that if you break your lease agreement, you will forfeit your deposit. That can be hard if sudden life changes pop up.
The great thing is that, in several cases, if you keep your place in excellent condition and fulfill the terms of your lease, you can typically get your security deposit back.
To make sure you maximize your refund, you need to do a thorough walk-through when you move in. Take photos of the entire property, particularly any damage you see, and attempt to keep the place clean and in good shape while living there. When you depart, deep clean the home and take care of any little issues. These actions can ensure that 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 most significant number in your budget, it is not the only one. To figure out the real cost of renting, make sure you add all other expenses related to your new rental home. For example, a lot of rental homes might ask you for trash collection fees, parking permits, lawn care costs, or some maintenance costs. The kinds of fees and expenses you’ll be responsible for will differ, and may depend on whether you’ve rented an apartment, a single-family home, or another type of property.
Before you sign your lease, remember to ask your landlord about any fees you might have to pay. Get a comprehensive list, preferably in writing, to help you generate a realistic rental budget. By doing so, 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’re way less likely to be shocked when that first bill arrives.
Utilities for Renters: What to Expect and How to Save
Besides your rent payment, one of the major monthly expenses renters face is utilities. Utility costs and expectations can differ — for example, some apartments may include utilities in the rent. But typically, utilities for renters often bring in expenses for electricity, water, gas, internet, and sometimes trash or sewer services. Depending on your location and the energy efficiency of your home, these outlays can differ significantly. So, it is crucial to ask your landlord which utilities are included in the rent and which ones you’ll need to cover yourself. This information will help you plan your budget more accurately.
If you’re responsible for all the utilities, there are multiple approaches to save money. Check out some methods to reduce energy use. Replace LED light bulbs, unplug electronics you’re not using, and adjust the thermostat when you’re away. Even little actions like these can really add up to significant savings down the road!
Don’t Forget About Renter’s Insurance
Another vital factor of budgeting for your rental home is adding the expense of renters’ insurance. Most renters’ insurance commonly protects your personal belongings, liability if somebody suffers injury at your home, and sometimes even living expenses if your rental becomes uninhabitable. Some landlords require renters’ insurance, while others don’t really care. However, it’s always a great idea to have a renter’s policy to protect you in case something goes wrong.
The cost of renters’ insurance typically doesn’t break the bank, ranging from $10 to $25 per month. If you possess a car, you can add renter’s insurance to your auto insurance policy for a decent amount. Either way, shop around for the best rates and then guarantee that you add the monthly premium to your rental budget.
Budget Smarter, Live Better
Determining the actual cost of renting a home enables you to relax and appreciate your new environment more fully. In fact, a smart rental budget can significantly enhance your confidence and equip you to confront life’s challenges.
Real Property Management Evertrust can help you find a home in the Brunswick area that corresponds to your financial limits and desires for life. Let us help make your rental experience as smooth as possible.
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