Those looking to rent an apartment or house for the first time often think that their only expense is the rent. However, there are a lot more costs associated with renting than you might think. What those costs are, you can read below.
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How do you chart your budget?
Before you rent a house or apartment, you need to know what monthly budget you can rent at all. Only once you have that understanding can you begin your search for the ideal home.
Where many still make the mistake is that they only consider the effective cost of rent. However, in reality, there are a lot more costs to take into account once you leave the nest and start living on your own. Costs that can take a big chunk out of your total available budget. These costs can be divided into one-off costs (rent deposit, interior costs...) and monthly costs (rent, insurance, gas, electricity...).
Only once you have mapped out all the elements will you have a clear and above all realistic picture of what you will have to pay monthly (or one-time).
One-time vs. monthly fees
One-time costs
There are (only) a few types of one-time costs to consider when renting an apartment or house. These include your rental deposit, moving expenses and the budget you have to set aside to furnish your home. For these costs, it is best to have saved some money in advance.
Your rental deposit
A rent deposit is something you pay when you sign your lease. This sum is usually 2 to 3 months' rent and is deposited in a third-party account. Basically, this sum is not touched unless you as a tenant cause damage to your rental property. If you do not take proper care of your rental property, the landlord can withhold part of the deposit paid and use it to patch up the property.
If there are no unforeseen expenses, you will receive a full refund at the end of your rental term.
Moving expenses
Do you have a lot to move? Then you will most likely need a larger vehicle to transport your belongings in. Do you live on a higher floor? Then an elevator can also come in handy.
Interior Costs
The great thing about moving is that you can decorate your new place completely according to your preferences and tastes. But interior design also comes at a price. So map out in advance which furniture and home accessories you want to bring into your home and stick a maximum budget to your interior investments.
Monthly cost
You need the budget for one-time expenses to effectively begin your rental adventure. But monthly budgets also go out the door. Too often the mistake is made of assuming that monthly expenses stop when the rent is paid. Wrong! Your monthly advances for gas, electricity and/or water are also added, as well as your insurance and maintenance costs. So it's best to calculate your monthly budget a little more liberally.
Rent
Rent is the monthly price you pay to live in your rental property.
Advance payment for gas, electricity and/or water
A household runs on gas, electricity and also (hot) water. Do you want to heat your home, keep the lights on or be able to take a hot shower? Then you will need to take out a subscription. Depending on the size of your home, the region and the supplier, you will have to pay a certain budget per month.
Internet, television and telephony
Anyone who wants to work from home or enjoy a good movie on the couch in the evening needs Internet and/or a television with cable. For that, too, you need a subscription for which you pay a monthly fee.
Common costs
Common costs are the costs that both you, and the fellow residents in the apartment building you live in, pay. Examples include: the maintenance of the elevator, the cleaning of the hallway, the janitor...
Insurance
Taking out the right insurance is crucial in both renting and buying. Even if you are careful and considerate, (costly) unforeseen circumstances can arise. With the right insurance, however, you have little to worry about financially. One insurance required by many landlords is fire insurance.
The budget estimate: a tricky exercise
Although the additional costs of renting property are the same for almost everyone, it is impossible to put a fixed budget on it. Each property has its own characteristics, as well as the extent of certain costs depends on the region in which a property is located. If you want to know the cost of your rental property, you should consult the various parties involved. That way, you can get the most accurate monthly cost estimate possible.
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