First time tenant guide
Budget for Your Tenancy
Budget for Your Tenancy
If you’re renting a property in England, it’s important to budget for both your moving-in costs and your ongoing monthly costs.
When you start a tenancy, you may need to budget for:
- A refundable holding deposit of up to one week’s rent to reserve a property.
- Your tenancy deposit, which is usually capped at five weeks’ rent where the annual rent is under £50,000, or six weeks’ rent where the annual rent is £50,000 or more. (Refer to the government guidance and the Tenant Fees Act 2019)
- Your first rent payment, which will be due in line with your tenancy agreement.
- Other setup costs, such as furniture or household items, if the property is unfurnished or part-furnished.
Once you’ve moved in, your regular costs are likely to include:
- Rent
- Council tax, unless this is included in the rent
- Utility bills, such as gas, electricity and water, unless these are included in the rent
- Broadband, phone and other communication services
Before you agree to rent a property, make sure you understand exactly what is included in the rent and what you’ll need to pay separately.
It’s also a good idea to plan your monthly budget in advance, including essentials such as food, travel and day-to-day living costs, so you can be confident the tenancy is affordable for you.
For renters in England, most tenant charges are banned. In most cases, landlords and letting agents can only ask for certain permitted payments, such as rent, a refundable tenancy deposit, a refundable holding deposit, default fees in limited circumstances, and payments for utilities or council tax where these apply. See our Permitted payments guide for more information.
This guide is for renting in England. Renting rules and costs can differ in Scotland, Wales and Northern Ireland.