Renting a new home is an exciting step, whether you’re entering your first rental home or upgrading your living situation. However, with applications and packing underway, it’s easy to overlook the extra costs that come with moving. Items such as utilities and security deposits, plus the need for proper insurance, can impact your budget more than expected.
That’s where advance planning becomes essential. A detailed rental budget allows you to settle into your new place without financial uncertainty. Learning about the cost of renting and utilities for renters can help you stay prepared.
Security Deposits: What You’ll Pay Upfront and How to Get It Back
Anyone who plans to rent a new home should be prepared to pay a security deposit. This upfront expense can feel overwhelming, especially when it rivals your first month’s rent. A security deposit is money the renter pays upfront and is kept in a separate account by your landlord to protect the landlord from losses related to property damage.
For single-family homes, the amount of a security deposit typically equals one or two months’ rent. Apartment deposits may be similar or less. Be aware that a security deposit typically cannot be used to cover your last month’s rent.
Most leases will include a clause stating that if you break your lease agreement, you may forfeit your deposit.
The good news is that renters who fulfill the terms of your lease often get your security deposit back.
To maximize your refund, perform a thorough walk-through, take photos of the entire property, keep the place clean and in good shape, and deep clean the home before moving out to get all or most of your security deposit back.
The Hidden Costs Beyond Your Monthly Rent
Even though the amount of your monthly rent may be the largest number in your budget, it rarely reflects the full picture. To determine the real cost of renting, renters should account for all expenses related to your new rental home. Depending on the situation, rental homes may include trash collection fees, lawn care services, parking charges, or various maintenance costs. The fees and expenses you’ll be responsible for can change based on whether you’ve rented an apartment, a single-family home, or another type of property.
Before you sign your lease, remember to ask your landlord for details about any applicable fees. With this information, you can create a realistic rental budget that reflects actual costs. Doing so ensures you know exactly how much it will cost to stay in your rental home each month and prevents surprises when the first bill arrives.
Utilities 101: How to Budget and Save on Monthly Bills
One of the largest monthly expenses renters faces, besides the rent payment, is utilities. Utility costs can differ—some apartments may include utilities in the rent—but generally, utilities for renters encompass expenses for electricity, water, gas, internet, and sometimes trash or sewer services. Energy efficiency and location can influence these costs. Make sure to ask your landlord which utilities are included in the rent and which you will need to cover yourself. This will help you plan your budget more accurately.
For those responsible for all utilities, there are many ways to save money. Reduce energy use with LED light bulbs, unplug electronics when idle, and adjust the thermostat as needed. Over time, these measures can lead to significant savings.
Why Renter’s Insurance Is Essential (And More Affordable Than You Think)
Including renters’ insurance in your budgeting for your rental home is a smart choice. Most renters’ insurance protects personal belongings, covers liability if someone is injured in your rental, and may include living expenses if your rental becomes uninhabitable. While some landlords require renters’ insurance, having a renter’s policy is a wise precaution regardless.
The cost of renters’ insurance is generally very reasonable, ranging from $10 to $25 per month. If you own a car, you might be able to add renter’s insurance to your auto insurance policy. Always seek the best rates and ensure the monthly premium is accounted for in your rental budget.
Your Action Plan for Stress-Free Rental Budgeting
Having a clear understanding of the actual cost of renting a home allows you to spend more time appreciating your new surroundings. A smart rental budget keeps you prepared and assured in managing your financial responsibilities.
Looking to find a home in the Amherst area that matches your lifestyle? Real Property Management Thrive can help! Contact us online or call 603-255-4100 now to make your rental experience convenient and worry-free.
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