Costs and Fees Involved
When renting a property there are certain costs to take into consideration. These costs may vary depending on the area in which your property is located.
Below is a list of both stand-alone and continuing costs associated with renting:
Rent
You will typically be expected to pay one month's rent in advance before you move in, followed by ongoing monthly rent throughout your tenancy unless another rental agreement has been made.
Security deposit
If you are a tenant under an AST (assured shorthold tenancy), you will usually be expected to pay a deposit equal to around five weeks' rent if the rent is under £50,000 per year or six weeks rent if the rent is over £50,000 per year. For tenancies not in the Housing Act, expect to pay a deposit equal to six weeks' worth of rent.
Agent fees
Agent fees such as reference checks, inventory checks, and a tenancy agreement fee are usually applied to non-Housing Act tenancies. These checks will ensure that your property is up to standard. There is no charge to the tenant if the tenancy is an assured shorthold tenancy.
Moving Costs
It’s important to plan ahead of moving day and contact local moving companies who can assist you in transporting your belongings. Hiring a vehicle or placing your items in storage can help to ease stress during the moving period.
Household bills
Most rental properties are exclusive of bills. This means you will have to pay additional monthly fees on top of your rent. However, you can avoid any nasty surprises by budgeting and setting up direct debits. Examples of the bills you will be expected to pay include water, gas, electricity, council tax, broadband, TV license, and insurance.
Increase in rent
Some landlords will include an increase in rent per annum. Therefore, it is important to be aware of this before signing your tenancy agreement.
For more information on renting, contact the Chesworths team today.