Am I being naive about cost of renting?

Caroline_83

Hello again!

I wanted to ask whether I was being naive about renting a cottage in the village where I work. I don't drive so living in the village where I work is easier for me and saves me getting the bus/taxi.

The village is rather desirable but I THINK I can afford it.

I'm viewing a lovely cottage on Monday which is £540pcm. I get around £1500 a month after tax so I'm thinking I can afford this place alone although there is a 2nd double bedroom if I need a lodger.

The only reason I question this is that it is oil-fired heating which I know nothing about. I don't know how it works or how much it costs. I don't even know if I'll get bills like everyone else from a fuel company??

If anybody could shed some light on it, I'd be grateful.

quintwins

i think you could live off £960 after rent if your sensible but it depends on your lifestyle

with oil heating you have to 'fill' your tank so it's a lump out at once the more you order the cheap it is per litre, but it does mean your in the situation we were 2 months ago of havinsg to hand over £530 on one go, which is ok if you save up for it, not as good if you don't have that extra now and move in and find the tanks empty, oh and always shop around for oil we nearly always buy 900litres at a time and get £20-£30 knocked off the price

Yorkie1

Oil-fired heating is based on oil in a tank on the property, which is filled up periodically by a delivery. Oil is I think more expensive than the usual gas although I don't know the specific details. The energy consumption will really depend in part on how energy efficient the place is - you should see an energy performance certificate which might give a broad idea of how well insulated etc the property is.

If you do take the property, make sure that you know how much oil is in the tank when you start, and try to make sure you return it with the same amount (or only a little more) in it when you leave - or you may get stung by the LL for refilling it out of your deposit.

If there are similar properties nearby you might ask them, or the LL / existing tenant, about current bills.

I would not rely on being able to have a lodger to assist with bills. That is likely to be forbidden in your tenancy agreement.

princeofpounds

Unless you have unusual spending patterns you should be ok, especially if you are open to lodgers.

Old people will tell you that rent should be about 1/3rd of your net income as a target. Most young people I know (admittedly in the expensive south-east) have to pay 40-50% of their income to secure something that isn't in a crime-ridden council estate so that rule of thumb may be a bit dated.

So it seems to me that you are doing ok. Oil-fired heating is more expensive, but it's not multiples of gas, just substantially higher. Saving on public transport would probably offset it.

Norman_Castle

Heating oil may be cheaper if delivered the same time as neighbours.

Werdnal

Oil is generally more expensive to buy, but the prices do fluctuate and you can usually buy it cheaper during the summer months. You may be able to take advantage of deal available if several neighbours have their oil delivered at the same time.

Check whether the tank will be full at the time you take the property? It is often considered the norm for the LL/previous tenant to fill the tank, for the incoming tenant to start with. When/if you leave, you will then have to get tank filled to the same level as when you started.

You can look at it as an advantage that you pay for the oil upfront, so no unexpected bills to arrive until (obviously) you need to re-fill the tank again. You also need to plan ahead a little as during the snow problems last winter, a lot of people ran out of oil as deliveries couldn't get through, and suppliers even ran short themselves, so even if they could get their lorries out, they had none to deliver!

G_M

A 2 bedroom cottage might use 1000 - 2000 lites of oil a year. About £600 - £1200 a year, or £50 - £100 per month.

Depends how often the heatings on, how well insulated the house, how warm you lije it......

You must make sure that either your tenancy agreement or the (dual-signed) inventory has provision for the oil ie records how much in the tank at the start AND what happens at the end of the tenancy if there is more or less in the tank. It is impossible to 'arrange' to leave the same amount in the tank, so either the llandlord pays you for any extra oil you leave, or you pay the LL if the tank is emptier.

But I'm sure you can afford it.... unless costs sky-rocket again in which case we;re ALL doomed. Doomed I say!

dimbo61

The rent is £540 a month but dont forget the OIL costs, electric, council tax 75% if you live on your own, contents insurance, Tv licence , phone /broadband, moving costs, furniture , SKY!!!
Is the property furnished ie fridge/freezer, washing machine, dryer, bed ETC
How much deposit and is it an AST agreement
Are they using a letting agent and have you paid out for credit checks
Is £540 a month the going rate for a cottage in your village or can you find cheaper

The_Palmist

Can you move in as a lodger before renting out a place of your own. With your salary I am guessing you will just about get by in a decent way but you will struggle to save.
I would advise against renting so high. With your income, £450 should be your max in my opinion.

The_Palmist

ahh also getting a lodger might not be that simple.

PasturesNew

You've loads of money. There are plenty of jobs that pay a lot less than you get and people live and have the cost of commuting.

Re the oil heating though, if you're living alone you might not need to treat yourself to full and proper heating, but simply use a 1kW electric heater for 1-2 hours/evening. I've never been able to afford to have proper heating on - but you do have a big income so could probably afford to run the heating and not notice the bill.