COSTS

COSTS

Have you found your dream accomodation? If so it is time to ask for price. Can you reasonably afford to live here? Before seriously considering an apartment, you need to seriously consider your budget. Conduct a bit of online research to get a sense for the typical rental rates in the neighborhood. If you’re willing to pay a high price for a certain location, then you’ll need to find other ways to cut back on expenses. Or you may need to find roommates to help cover the costs. Also, keep in mind that if an apartment’s rent is unusually low  compared to other rentals in the area, then this may be a big red flag.

Property taxes likely will vary widely across your target area, and you want to be aware of how much you’ll be losing. High property taxes are not always a bad thing—in a great neighborhood that attracts long-term tenants, for example, but there are unappealing locations that also have high taxes.

The municipality’s assessment office will have all the tax information on file, or you can talk to homeowners in the community. Be sure to find out if property tax increases are probable in the near future. A town in financial distress may hike taxes far beyond what a landlord can realistically charge in rent.

Generelly – THINK – that you will need to pay for electricity, gas and in some cases water usage. This will cover you from damage or loss of personal belongings. This includes cost of the connections of all the utilities and services you will need or wish to have, which are not paid by the landlord as part of the rental agreement.

What is  not usually included in price for rent?

  • TV
  • Phone bill
  • Contents insurance
  • Electricity bills

Landlords will typically cover the water, sewage and garbage. The cost of this is lumped into your monthly rent. If you are looking for an apartment that has all utilities covered, the costs are likely just lumped into your rent

What is usually included in price for rent?

  • Bills for water
  • Council tax
  • Gas bills
  • Electricity bills
  • Sometimes services for example internet

When considering your budget – there also have to be included  your own expenses such as:

  • Phone
  • Food
  • Clothes
  • Hobbies
  • Nights out
  • Loans
  • Travel
  • Insurance

When we are talking about costs it is also good to speak about furnishing. When you rent a property you need to check whether it will come as furnished or unfurnished, meaning with or without furniture. This information should be featured in whatever listing you are reading and it’s important that you look out for it – falling in love with a flat because of its furniture is all well and good provided it’s not empty the day you move in! When it is furnished you saved the money!

You also need to count with the fact that the first things that your new landlord will ask for after signing the contract. It is a sum of money – usually six weeks rent – that you must pay upfront to safeguard against any damage you cause to the property over your tenure. Unscrupulous landlords are notorious for seeing this deposit as an extra source of income and often find the smallest of complaints for which to charge, or just don’t bother returning it at all. Avoid these tricky situations by taking out Deposit Insurance or insisting that the funds be held by the Deposit Protection Service if you’re in the UK.

You don’t want to risk getting into debt after a few months because you forgot to factor in one of your regular monthly payments. Be careful!