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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.