True cost of renting

Etherelda

Hello MSE'ers!

I am currently living with my dad, in his mortgaged house. He wants to downsize with a timescale of about 6 months. While he says there is always a roof over my head, he has made it clear that this will only be for a short term basis/emergency measures, as the smaller house will not accommodate all of my junk, and I think he wants some peace and quiet.

I have just started a newer higher paid job, and the keep I pay will be going up slightly, but what I pay compared with having my own place is peanuts- more a token amount, but then I do a fair bit of cleaning/gardening, and you can't put a price on unconditional love.

I am looking at renting a one/two bedroomed place and am trying to work out what/if I can afford. My list so far:

One off fees:
-deposit
-moving costs- transport, boxes, fuel (I have access to a van and man)
-admin fees if using letting agency
-furnishing if un-furnished house (although I am a freecycle ninga)
-decorating if need be or allowed

Monthly costs
-council tax
-water
-gas/oil
-electric
-line rental
-tv licence

These are just off the top of my head and I know I may have missed things out.

I really don't know how much tax, water, gas and electric is on a small place, and I know it can vary.

If I can convince dad to let me see his bank statement, then I can have an idea of what it costs for his current 4 bed cold, uneconomical house.

Please can you offer me any hints/tips/info on any other costs I will have to do with renting by myself.

Thanks

Etherelda:j:j:j

BitterAndTwisted

What are rents in the area you are thinking of living in? I see that you haven't put anything in the monthly expenses for rent or internet access.

Depending on how old you are and how high your income is, I think even fantasising about a two-bed is a tad ambitious.

mrcol1000

If you have never rented before then sharing is a good first step. Especially if you share with someone a bit older and hopefully wiser. Your costs all depend on the location and size/age/type of house. If you go for an ultra modern just built flat then rent will be more but it should have a decent boiler and insulation/double glazing and your running costs be cheaper. An older cheaper flat may have an older boiler and only basic insulation meaning your bills are higher. My first flat had a single electric bar fire in the front room and a very old electric water heater. My electric bills then (10 years ago) were much higher for that one bedroom flat than the two bedroom house I live in now!
You just need to best estimate your costs in a worst case scenario and try and have some money aside just in case.

Etherelda

BitterAndTwisted wrote: »

What are rents in the area you are thinking of living in? I see that you haven't put anything in the monthly expenses for rent or internet access.

Depending on how old you are and how high your income is, I think even fantasising about a two-bed is a tad ambitious.

doh!

Yes I missed rent off, as it was obvious, i'm not expecting a rent free place.

I could indeed consider house share, there are not many professional flat share opps around my area, plenty in Cambridge, but not many around Newmarket/Ely and up towards Thetford where I'll be working. Prefer to stay in the Ely area. Cambridge is too far from work.

I've also got a four foot fish tank (and two smaller ones) that needs accommodating so it'd have to be a large bedroom in a shared house. If push comes to shove, I might have to get rid of the big tank though.

It might be worth me down-scaling all my crap and putting some of it into storage, and sticking it out as long as possible at my dads, and then at my mums (who is also pushed for space) for a bit, while I pay off my debts.

Another worry I have is passing some sort of credit check at the mo, as I am getting monthly defaults from two creditors, something i'm trying to sort out with the CCCS and my DMP.
I am awaiting an accident payout within the next 6 months (i've been waiting four years, but finally got court papers 2 weeks ago), so I want to sort out full and final offers with creditors, and start saving up for a deposit for mortgage maybe, i'm thinking that i'll have to wait ages for my credit rating to clear up before considering a mortgage.

There have been some 2 bed cottages come up in the sticks, but 1 bed is fine, 2 is a bonus. The cheapest 1 bed places have been £350 pcm, ranging up to £600 pcm.

I get broadband free though my mobile phone rental package.

BitterAndTwisted

Considering the OP is on a DMP I would recommend that they consider either a flat or house-share or look into becoming someone's lodger.

Etherelda

I lived in two shared houses whilst I was at uni, but I don't know of anyone in my area looking for a house mate in the area, I ought to research how to know if you'll cope with some random strangers! Maybe I should start looking based on people that share the same interests in me- politics, motorbikes, those sorts of circles. umm.

Jowo_2

Download the budget planner spreadsheet on the free tools section of the website.

You might be looking at around £70-90 for council tax per month after the single persons allowance discount, plus £50-80 for gas/electricity (depends on consumption, type of heating, energy efficiency of house), tv licence averages around £12 per month, telephone line rental is similar, water rates (£15-20) and contents insurance could be similar to that, too.

Before you move in, you will need to pay the first months rent, plus a deposit that's usually equivalent to between one month or up to 6 weeks rent, plus letting agent fees of up to a couple of hundred pounds,plus around a hundred pounds for a man and van. Based on the rents you cite, you could need a nest egg of between approx £800 to £1500 depending on removal costs, agency fees and the level of rent.

A person with a poor credit history who fails the screening could be asked to pay the first 6 months rent or provide a guarantor.

Jowo_2

Etherelda wrote: »

... Maybe I should start looking based on people that share the same interests in me- politics, motorbikes, those sorts of circles. umm.

House sharing isn't dating. Suggest you put your energy into compatibility when it comes to things like work routines, if you want a quiet or party house, similar attitude to tidiness and cleanliness, and basic rules like overnight guest and smoking policy....

No point in ending up with a politically minded motorbike owning flat mate who is dirty, noisy, bring one night stands back, smokes and works nights if that's the opposite of the type of person you want to live with.