A quick guide to help you budget for moving into a rental property.
Are you a tenant thinking about moving to a new property and worried about the expenses? There is no getting away from it; moving house is expensive. This article will inform you of the costs involved so you can budget accordingly and not end up in hot water.
Moving to a new rental property can feel daunting, and there are many things to coordinate. You need to find a property, be referenced and accepted, give notice to your current landlord and arrange a date to move that doesn't overlap your two rental payments too much but doesn't leave you without a home!
It's a tricky time and made all the trickier if you're already struggling with the cost of living crisis. As with many things in this life, many of these concerns are alleviated if cash is available. It won't matter if you don't get your deposit back from the previous landlord immediately or overlap your properties by a few weeks because you have readily available money to pay for these things. But for those of us on a slightly tighter budget, careful coordination is the key to minimising those costs as much as possible.
Budgeting for a house move can be tricky without knowing the costs involved.
Holding Fees: If you've lived in the same property for a few years, you may not be aware that the Government banned charging referencing fees to a tenant. But that doesn't mean that you don't have to pay anything. For the property to be held for you whilst you are going through the referencing process, you may be asked to pay a holding fee. This is calculated as no more than one week's rent for the property, and if you're successful in your reference, it'll make up part of your first month's rent.
Deposit: You will be asked to pay a tenancy deposit to cover the landlords for any damages caused at the property while you live there. This is capped at a maximum of 5 weeks' worth of rent. The landlord must protect this money by paying it to a service like the Deposit Protection Service, which will hold the funds until you move out, or by purchasing an insurance policy. Either way, you'll be informed of how the deposit is protected and how you can have it returned to you when you move out.
First month's rent: Your first rental payment will be due when you receive the keys and check in to the property. Of course, if you've paid a holding fee, this will be deducted from the balance.
Insurance: As a tenant, the landlord will ensure the building is insured, but you must insure your contents. This is not likely to be very expensive, but it is a requirement that you insure your contents, just in case one of your belongings - let's say your iron - causes a fire in the landlord's property. It is easy to get a quote online, or your letting agent will be able to point you in the right direction.
Removals: This is a personal preference. If you're moving a long distance and bringing all your furniture, you might employ a removal company to do the heavy lifting. But, if you're moving into a furnished property and only have your personal belongings, you can possibly do that with a few car journeys. Removals can be expensive, so it is best to shop around for quotes.
There is no denying that moving house is an expensive process, so it's best to budget before you get stuck into making plans. Following these guidelines can help you figure out how much money you will need to move and will mean that you are not left mid-move without enough to pay for the essentials.
If you're thinking of moving and would like to be kept informed of new properties that become available for let, get in touch with our team of property rental experts and register your details.