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Cost of Renting


The list below outlines the overall costs associated with renting. It details the initial costs involved with securing the property as well as the on-going costs that are involved throughout a tenancy.

Costs prior to tenancy

Tenancy Deposit

It is common to be asked to pay the equivalent of 1 to 2 months rent as a tenancy deposit. This will be payable in advance of moving in to the property. If you have an assured shorthold tenancy this money should be help in a secure tenancy deposit scheme and you should get it back at the end of your tenancy if you don’t miss any rent payments or cause any damage to the property.

Rent in advance

The landlord will usually ask for at least one month’s rent in advance however if you cannot produce documentation to prove you can afford the rent you may be asked to pay more, it could be up to 6 months especially if you cannot offer a guarantor.

Letting or Estate Agents fee

From 1 June 2019, tenancy deposits are capped and most fees charged in connection with a tenancy are banned. There are also set procedures in place regarding holding deposits. For more information, please read the government guidance on the ban which will apply to all new lettings from 1 June 2019 and will apply to existing lettings from 1 June 2020.

Moving Costs

You will also need to take into account the removal costs if you are moving locally as well as the shipping costs if you are moving internationally.

If you are moving into an unfurnished property you may also need to consider what furniture you may need.
If you wanted to get a clear idea of what you may need to budget each month you could use the following monthly budget calculator recommended by Shelter. It is hosted by the Money Advice Service here. You can also look on Shelter's website for tips on organising money here.

Costs during tenancy

Rent

Make sure you can afford the rent for the neighbourhood that you want to be in, by using websites such as Rightmove or Zoopla you can normally calculate the average rent for the property type and size that you want in any particular area or postcode.
Please be aware that the contract usually states that rent is payable on a particular day and is normally payable in advance so you will always be paying for the month ahead.

Council Tax

The council tax may be included in the rent but this should be set out in writing from the start of your tenancy if it is. Normally you would pay directly to your local authority (which is dependent on where your property is). If you are living alone or are a pensioner you may receive a discount and normally households that only have full time students living in them are exempt of council tax however you need to confirm this with your local council.

Service Charges

These are normally payable in blocks of flats where you have shared hallways and external areas, this money pays for the upkeep of the building. Again make sure you are aware if any service charges apply before you sign the contract.

Household Bills

As well as rent and council tax please take into account other bills such as gas and electricity, broadband/phone, water rates and television licence.