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.
Write down a projection of all your monthly outgoings (not forgetting money to spend on food, clothes and the leisure activities) so you can see how much money you have left for rent.