Budget for Your Tenancy
You will have a few significant outgoings when you first set up a new tenancy:
A tenancy set up fee charged by your letting agent to conduct a credit check, seek references from previous landlords and employers, setting up the tenancy agreement and protecting your deposit. (Tenant fees do not apply in Scotland.)
Your first month’s rent.
Your deposit which will be at least the same amount as one month’s rent, and is often more.
In addition, you may encounter other initial fees (not applicable in Scotland), such as:
An additional person fee charged for every other person included in the tenancy.
A guarantor fee. You may need a guarantor (usually a parent or guardian) if you cannot provide appropriate references (for example, students who have never rented a property before).
- Other initial outgoings might include the purchase of furniture if you rent an unfurnished or part furnished property
Once you have moved in, you will have ongoing costs:
Your monthly rental payments.
Your council tax payments. Sometimes these may be included in the rent.
Your utilities including gas, electricity and water. Sometimes these may be included in the rent.
Phone bills, broadband and line rental.
Make sure you take all of these costs into account when you’re thinking of renting a property.