I went into renting my property pretty much blind; I had no idea there would be so many hidden costs, which is what inspired me to write this post.Hopefully giving you a better idea of what to expect before renting and the best way to prepare. I have based the figures on the average cost to rent a 2bedroom house in the East Midlands, please be aware that in areas like London costs will most likely be double this (unfortunately! )
The costs you will incur:
- Application Fee (£50-200 per person)
- Deposit ( Usually one Months rent)
- Rent (£400-£700)
- Council Tax (£100-£200)
- Gas/ Electricity (£40-£70)
- Water (£30)
Lifestyle (Based on a household of 2 people per month):
- Food/Drink (£100-£200)
- House supplies e.g dishwasher tablets, toilet paper etc (£30)
- TV Licence (One off fee of £174)
- Internet (£15-£45)
Can you afford it
So the next question you need to ask yourself is can I afford it? You may be entitled to help from the government through working tax credit, child tax credits, housing benefit etc. It is definitely worth having a look, as it could be of great help to your situation. I guess another question to ask yourself, is what am I willing to give up? You may have to sacrifice your monthly trips to the cinema, restaurant meals, and the tempting misguided deals for a while.
- List all your incomes and expenditure. Write down all the money you have coming into your account and all the money you know will be coming out. That way you can work out how much money you have left over for fun/leisure.
- Do weekly rather than daily food shops. This can make a big difference if you are getting vegetables and meats ect that can be used for more than one meal rather then popping Tesco every day to pick up something new for dinner.
- Have an ‘every day’ and a ‘savers’ bank account. Putting a bit of money aside every month into a savings account can be a lifesaver if you ever need a little extra help one month. You never know when appliances break down… or you need a stress-free weekend getaway!
- Find cheaper alternatives when it comes to leisure. I know this sounds like a boring one but in most cases, the best way to cut back on spending is by cutting out those weekly dinner dates and trips to the nail salon. I know most of my money went on food and I didn’t know how I was going to survive now that I had to do my own cooking. However, I embraced it, and followed a load of recipes I found online. I would recommend trying to replicate some of your favourite meals at home, so you can still enjoy yourself for 1/3 of the price!
*Disclaimer: I am not a professional money expert, these tips are based on my own knowledge and experience. You can read my full disclosure policy here.