Renting My First Property

KirstyL

Hi everyone,

I am looking at renting my first property after leaving university and I'm looking at some general guidance and advice.

I am currently earning £1100 per month after tax and have fallen in love with a 2 bedroom apartment that costs £450 per month excluding bills and although I desperately want the place I am worried that it may be a little too expensive as I will be renting it by myself.

I know I will also need to account for council tax, electric, gas, water, tv licence, phone, internet etc but to be honest I'm not sure what to expect in terms of how much this will all come to. Does anyone have any rough estimations,the property is based in North West Leicestershire.

Other than those outgoings I will also need to fork out for fuel (approx £100), car repayment (£100) and food (not really sure how much this will be).

So basically I am just looking for opinions of whether renting this particular apartment is realistic or should I try and find somewhere cheaper, although there isn't that much available for less than this price..

Thanks for your help and advice in advance!

[Deleted User]

An often quoted figure is your rent should be 1/3rd of your take home, although the less you earn the more likely it is to be closer to 50%. £450 per month is about 40% of your take home which isn't ideal but it's perfectly doable.

Does the listing for the flat include an EPC? That will give you a rough idea on what the heating will be like, a well insulated place will not need much heating and save you bunches of money. I would expect to spend roughly £250 per month on bills in a small 2 bedroom apartment but you may want to be conservative and expect a bit more.

Electricity: £50 - £75 if you use the heating as little as possible and make sure you use it properly (although very dependant on the property).

Gas: Depending on what sort of things use gas, maybe £30 - £50.

Council tax: You can find this out in advance, look on your local councils website and they'll have a utility that lets you enter the address and find the band and then from there you can find the cost. A single occupier discount (if available) will reduce that by 25% which would probably bring the cost to maybe £80 - £100 per month.

Water: £20 per month is a reasonable estimate if you don't use much, if you take baths every day it'll be much higher. A quick 5 minute shower once a day should save you money here.

TV License: £12.44 per month is the current cost.

Phone + Internet: You should be able to get a package for roughly £20 - £30 per month if you look around.

Food can be quite expensive however if you're willing to be very careful about what you eat and avoid eating out at all you can save quite a lot on food, £200 per month would be enough to eat well and without counting out pasta, at a push £100 could be done if you're willing to cook big meals in advance, have small packed lunches at work etc etc.

I think the biggest consideration with regards to renting this apartment should be what you expect to happen with your pay. If you're expecting to be on £1100 take home for the next couple of years you should probably look at renting a room somewhere instead to give yourself time to build up an emergency fund, if you're expecting to see an increase in your pay in the next year it should be okay.

The most important thing to remember is the biggest problem people have on low wages is not that they can't afford things, it's that they have no tolerance for unforeseen expenses. If you earn £1100 per month and spend £1100 per month as soon as an unforeseen cost arrives you'll need to fall back on credit, which can send you into a downward spiral of reliance on debt.

Have a strict budget that you stick to religiously and make sure that budget allows you to save money (even if it's just £100 or £150 per month) and you should be able to manage this just fine Plus, if you learn to work with a strict budget once your salary does increase you'll have the skills to save money towards your future instead of spending it on shiny new things, which is the trap most people fall into and what keeps most people with very little money.

The best thing you could do is pretend you're still a student, if you can live like a student (spend only on things required to keep you alive) for a few more years you'll give yourself such a fantastic head start in life.

Good luck!

Werdnal

Remember too, its not just convincing yourself you can afford it ... you have to convince the LL/Agent you have sufficient and reliable funds to cover the rent.

Also, you will be required to pay credit check and admin fees to apply for the tenancy, and cough up a month's rent plus normally a month's deposit before you get the keys. All in all, you may be required to hand over £1000-1200 in one go.

As you might not have a long-term renting history, you may also be asked for a guarantor to secure the tenancy. Do you know someone who would be prepared to do this? They will have to fit a specific criteria and also undergo a credit check ... normally requires they are a homeowner and.or high earner to qualify as they must prove they have assets or income sufficient to support your "debts" as well as their own!

There is a good sticky thread at the top of the forum page "A tenant's guide to renting" which might be helpful.