What sort of overall cost for renting.

[Deleted User]

Hi,
I'm looking into renting for the near future (17 right now, I'll be 18 at the time of renting.) I'm saving right now to have at least 6 months rent in advance, along with enough for a deposit.

Along with the basic costs of the rental, what else do I need to consider? This is rental for 1 person, I'm looking at 1 and 2 bedroom apartments - ideally one bedroom will become an office - and I've found some nice ones for £500/£550monthly, which to me seems reasonable.

Right now I've got rent, food, broadband/phone/tv, electricity and gas and I'm thinking that £250 on top of rental should cover all costs for living (not including transport etc, but that isn't relevant here).

Have I missed anything major? Do you think £750 is a reasonable amount to live off, if rental of property costs £500?

WillowCat

The biggie not on your list is council tax. Also contents insurance, water/sewage (though may be included in rent), and tv licence (assuming your first reference to TV was for a viewing package).

If you ask on the old style board or debt free wannabe you'll get some great help with budgeting.

I moved into my first rented place at 17, it was great to be so independent but it also makes you grow up really fast!:D

gazfocus

Will you be classed as a student when you move? If so, you won't have to pay council tax. If not, council tax can cost upto £100ish a month.

I am currently in the process of applying for a rental house and I too am paying 6 months rent upfront which I think is a great idea especially if this is your first time renting as you won't have to worry about finding the money at a later date.

barnaby-bear

citricsquid wrote: »

Hi,
I'm looking into renting for the near future (17 right now, I'll be 18 at the time of renting.) I'm saving right now to have at least 6 months rent in advance, along with enough for a deposit.

Along with the basic costs of the rental, what else do I need to consider? This is rental for 1 person, I'm looking at 1 and 2 bedroom apartments - ideally one bedroom will become an office - and I've found some nice ones for £500/£550monthly, which to me seems reasonable.

Right now I've got rent, food, broadband/phone/tv, electricity and gas and I'm thinking that £250 on top of rental should cover all costs for living (not including transport etc, but that isn't relevant here).

Have I missed anything major? Do you think £750 is a reasonable amount to live off, if rental of property costs £500?

Watch out for letting fees and average them over the time you plan to spend there. A lot of agents charge check-in/check-out/inventory fees etc. Plus you usually don't get a deposit returned until after you've left and to get a new place have to supply one - so worth budgeting for saving a float fund for that... Even if you have 6 months up front - don't give it up front to a landlord:
a) you'll reduce any interest they have in doing repairs
b) if they get repossessed the tenancy might not be honoured (this is surprising legal) by the mortgage company and you can be out instantly - plus you'll have paid for something you won't get....

Council tax inc. single person discount £90
Electricity+gas £50-60 (avoid storage heaters - or double this)
Water £20 (meter vs. rates can be different)
Contents £5-10 (go with someone like ensleigh specialising in rental who'll cover walk in; rentals you never know how many copies of keys exist - personally I change the lock barrel)
TV licence £13
Phone/Broadband (£30); check what phone lines/aeriels etc exist in a property - flats usually won't let SKY dishs and use a central aeriel which may/may not be installed. Similarly if no BT line already installing one can be pricey or limit the providers.
Food - do you eat out much/buy sandwiches at work - you could certainly do it for £100 a month if you cook carefully do your own lunches... but if you spend £4 a day on a sandwich and coffees that's £80 a month gone already

gazfocus

barnaby-bear wrote: »

Watch out for letting fees and average them over the time you plan to spend there. A lot of agents charge check-in/check-out/inventory fees etc. Plus you usually don't get a deposit returned until after you've left and to get a new place have to supply one - so worth budgeting for saving a float fund for that... Even if you have 6 months up front - don't give it up front to a landlord:
a) you'll reduce any interest they have in doing repairs
b) if they get repossessed the tenancy might not be honoured (this is surprising legal) by the mortgage company and you can be out instantly - plus you'll have paid for something you won't get....

Hope you (and the op) don't mind me jumping on this thread but I am in the process of putting my application in for a rental house and because of very poor credit rating I have been asked by the letting agency to pay 6 months rent upfront. After reading your post (quoted), I am now concerned that I could lose a substantial amount of money if something goes wrong, although I know the house has been let previously so I think the landlord has a long term interest in letting it out.

In this case, do you think the 6 months upfront will be held by the letting agency then paid monthly to the landlord or will it all go straight to the landlord?

Thanks in advance

barnaby-bear

gazfocus wrote: »

Hope you (and the op) don't mind me jumping on this thread but I am in the process of putting my application in for a rental house and because of very poor credit rating I have been asked by the letting agency to pay 6 months rent upfront. After reading your post (quoted), I am now concerned that I could lose a substantial amount of money if something goes wrong, although I know the house has been let previously so I think the landlord has a long term interest in letting it out.

In this case, do you think the 6 months upfront will be held by the letting agency then paid monthly to the landlord or will it all go straight to the landlord?

Thanks in advance

And if the letting agent does a runner/goes bust - all very murky....

An above board LL will have permission to let - which means the mortgage company will usually honour the minimum fixed contract and notice period, confirming permission to let is difficult:

http://forums.moneysavingexpert.com/showthread.html?t=1377883&highlight=permission+let

Hard to know of other charges and some BTLers overstretched and are in arrears all over the place - taking rent for one property to cover void in another etc.... it's becoming more frequent.

The dodgiest LLs are more likely to take a dubious credit history as desperate for the lump sum. For most they don't need the cash flow and for just 6 months to be landed with a ropey tenant not worth it.... a guarantor is a much better way for both parties.

barnaby-bear

gazfocus wrote: »

Hope you (and the op) don't mind me jumping on this thread but I am in the process of putting my application in for a rental house and because of very poor credit rating I have been asked by the letting agency to pay 6 months rent upfront. After reading your post (quoted), I am now concerned that I could lose a substantial amount of money if something goes wrong, although I know the house has been let previously so I think the landlord has a long term interest in letting it out.

In this case, do you think the 6 months upfront will be held by the letting agency then paid monthly to the landlord or will it all go straight to the landlord?

Thanks in advance

A LA is the AGENT of the LL, they work for them and receive a % fee from the LL for their services. They are legally obliged to carry out the LLs directions, they are not an independent 3rd party although are obliged to to conform to consumer and financial law and regulation.

mluton

This was mine and other halfs payments for renting our 2 bedroom flat.

1st amount is the bill amount, 2nd is a 50/50 split cost, letters are payment type.

COUNCIL TAX (8th) £79.00 £39.50 DD
RENT (28th) £525.00 £262.50 SO
WATER (3rd) £41.92 £20.96 DD
CONTENTS INSURANCE (30th) £7.43 £3.72 DD
BT PHONE (6th) £12.00£6.00 DD
GAS (6th) £35.00 £17.50 DD
TV LICENCE (3rd) £12.00 £6.00 DD
INTERNET (n/a) £0.00 £0.00 DD
ELECTRIC (9th) £31.00 £15.50 DD
FOOD (n/a) £120.00 £60.00 V
LOVE FILM (19th) £12.99 £6.50 V
EXTRA (n/a) £21.83

FLAT OUTGOINGS EACH £460.00
FLAT OUTGOINGS TOTAL £920.00

gazfocus

The letting agency has a number of offices in the area so I think they are not just a dodgy one but yeah I hadn't even thought of that. I have got a guarantor and even with the 6 months rent upfront they have insisted on a homeowner for a guarantor. Is this really something I should be worried about or is it a pretty low risk?

[Deleted User]

mluton wrote: »

FLAT OUTGOINGS TOTAL £920.00

Perfect post, exactly what I needed.

Thanks to everyone for the information, I think I can squeeze by at £800/month which is awesome, I'll make sure to track everything like mluton has, brilliant idea

PasturesNew

You've not said what sort of work you do, but keep an eye on how much LHA would pay towards your rent if you were to be laid off.

At your age you'd get the local "shared house" rate and about £47/week dole to live off ... this would leave you with a serious shortfall in your ability to pay your rent if your income were to dry up.

It might be worth considering a studio flatlet as your first place. OK it can be a bit cramped if you're living, working, sleeping in one area, but it IS cheaper. You can save probably £200+ per month as you'll be paying less: rent, council tax, heating, insurance.

I work from home and live in one so I know what I'm on about ... but you've given no details.