Renting a new home can be satisfying, whether it’s your first rental home or one of many. Yet, with all the applications and packing that go along with getting new keys, it is easy to put off all the extra costs that come with them. From utilities and security deposits to having the proper insurance, spending can escalate rapidly.
Making advance planning can shield you from numerous unwelcome surprises, which is good news. Actually, if you make a detailed rental budget, you can eliminate financial worries and fully embrace the enjoyment of your new place. Here’s what you should be aware of about the cost of renting, utilities for renters, and so on.
Security Deposit Explained: Be Prepared Upfront
When you rent a new home, you’ll almost always have to pay a security deposit. This can be a significant upfront expense, sometimes surpassing your first month’s rent. But why is that really the case? On the whole, a security deposit is a sum of money a renter pays upfront. This deposit cannot be regarded as the same as rent; it is kept in a separate account by your landlord. A security deposit was formed to protect the landlord from financial loss in the event of property damage or other costs.
For single-family homes, the amount of a security deposit is regularly roughly one or two months’ rent. For apartments, it may be identical or less. It is critical to understand that a security deposit typically cannot be used to cover your last month’s rent.
Another thing that numerous leases will include a clause stating that if you break your lease agreement, you will forfeit your deposit. That can be problematic if things in your life change suddenly.
Thankfully, in many cases, you can get your security deposit back if you manage your rental well and fulfill the terms of your lease.
To guarantee you maximize your refund, make certain to execute a thorough walk-through when you move in. Take photos of the entire property, including any wreckage that’s already there. After that, while you live there, make an effort to keep the place clean and in good shape. Before you leave, deep clean the home and resolve any small complications. You can get all or most of your security deposit back if you adhere to these measures.
Know the True Cost of Renting a Home
While the amount of your monthly rent might be the most significant number in your budget, it is not the only one. To estimate the real cost of renting, you’ll need to incorporate all other expenses related to your new rental home. For instance, many rental homes may require you to pay trash collection fees, get parking certifications, pay for lawn care, or cover some maintenance costs. The kinds of fees and expenses you’ll be responsible for will vary, and may depend on whether you’ve rented an apartment, a single-family home, or another type of property.
Before you sign your lease, it is prudent to ask your landlord about any fees you’ll have to cover. Acquire a full list, preferably on paper, so you can make a realistic rental budget. In this way, you will have a clear understanding of how much it will cost to stay in your rental home each month. And when you know exactly what to expect, you are also less likely to be astounded when that first bill arrives.
Utilities for Renters: What to Expect and How to Save
Along with rent payment, one of the biggest monthly expenses renters face is utilities. There are different utility costs and expectations. For example, some apartments may include utilities in the rent. Yet, utilities for renters commonly include expenses for electricity, water, gas, internet, and sometimes trash or sewer services. This price range can change a lot based on where you reside and the energy efficiency of your home. Due to this, you need to ask your landlord which utilities are included in the rent and which ones you’ll need to cover yourself. This information will help you plan your budget more accurately.
There are several ways to save money if you are responsible for all your own utilities. For instance, try to find means to reduce energy use. Install LED light bulbs, unplug electronics you’re not using, and adjust the thermostat when you’re away. Even minor procedures like these can result in significant savings in the long run!
Don’t Forget About Renter’s Insurance
Another essential element of budgeting for your rental home is adding the cost of renters’ insurance. Most renters’ insurance typically protects your personal belongings, your liability when someone gets hurt at your place, and sometimes even living expenses if your rental becomes uninhabitable. Some landlords require renters’ insurance, while others do not. But it’s always a great choice to have a renter’s policy to protect yourself in case something unfortunate occurs.
The cost of renters’ insurance is usually not too pricey, ranging from $10 to $25 per month. If you have a car, you may be able to add renter’s insurance to your auto insurance policy for a cheap price. In either case, look around for the best rates and make sure that the monthly premium is part of your rental budget.
Budget Smarter, Live Better
You can dedicate more time enjoying your new home if you comprehend the actual cost of renting a home. Moreover, a smart rental budget can empower you to tackle any unexpected situations that may arise.
Real Property Management Trusted Hands can help you find a home in the St. Cloud area that aligns with your financial situation and lifestyle. Let us help make your rental experience as easy as possible.
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