If you are about to rent a flat then you need to be prepared to part with a lot of money that you're not going to get back. While renting is no doubt cheaper than buying, the unfortunate downside is that you won't be investing that money and you'll never get to 'sell up' and cash in.
Thus you need to try and minimise your expenses as much as possible when renting, but that means thinking about more than just the upfront cost of rent. There are many other costs that you need to take into consideration here, so let's take a look at some of them...
Agency Fees
If you are renting through a letting agent (which most people will do), then you need to think about the agency fees that they'll try and pile on top. These are supposedly to cover the costs of their admin, though it's obvious that they're getting some serious profit out of them too. Ask around and go with an agency that isn't going to charge you over the odds.
Also important to remember is that those agency fees can often sting you more than once. That's because some agencies charge you in order to renew your contract with a property and even to cancel it at the end. Look into this as well when choosing which is the cheapest to go with.
The Cost of Moving
Moving itself can also be expensive depending on how far you have to go and how much stuff you have to move. Look into moving companies or van rental, or better yet try and see if you can't enlist the help of a friend who has a van of their own.
Furniture
When looking around the property you are going to rent, you also need to think about how much furniture will cost. If you go for a furnished apartment then obviously this won't be as much of an issue, but you may still find you want to add some chairs or some storage to what's already there. On the other hand if there's no furniture at all, you need to research whether or not you'd be able to afford to decorate the place cheaply.
Note that if you buy good quality furniture such as a leather sofa, that you can take this with you when you move and eventually have it in your house when you buy one.
Bills and Tax
Of course this also needs to be considered when you think about the costs of living somewhere, and there are various factors that can impact on these costs. For instance, if you move somewhere with high ceilings and electric-only heating, then you should expect to spend a small fortune on energy. Likewise, if you live in a desirable area and have a large property with lots of extra bedrooms, then you should anticipate paying more council tax as a result.
Consider all these things when you decide where to rent, as well as looking into the quality of the property, ad you can make sure that you get good value for money and enjoy a high quality of living.
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Nice article, very informative, although most of this cost deos not apply to average man here in Africa.
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