Your weekly rent isn’t the only thing you have to budget for when you sign your next lease. Here are some of the potential costs you need to think about when planning to rent.
Upfront costs of renting
A landlord/agent will ask for a rental bond, ‘bond’ or ‘security deposit’ when you agree to rent a new property. This amount is usually equal to one months’ rent, but it varies from state to state. You will need to have this money ready when you sign the lease.
RentBond is a convenient way to pay your rental bond. When you’re approved for RentBond, we’ll pay your loan either directly to your agent or to your nominated bank account. Find out more about RentBond here.
If you live in WA, you’ll be asked to hand over $260 as a pet bond if you plan to bring Fido with you. This is a fee that covers any costs incurred as a result of damage from your pet during the tenancy. For more information on pet bonds, click here.
Rent in advance
In most cases, you’ll also be asked to pay 2 weeks rent in advance as part of your security deposit. At the beginning of a tenancy, tenants pay their bond and two weeks rent. The two weeks rent in advance pays them for the fortnightly period. Two weeks later, rent will be due again and that rental payment will pay for the next fortnight, and so on. RentBond is a convenient way to pay your 2 weeks’ rent in advance and other moving costs. Find out more here.
If you have to move more than once every few years, moving costs can add up. Depending on your situation, you may need to hire a truck, ute or trailer to shift your furniture or engage a professional removalist to help you out.
If you’re moving out of home for the first time, or into a property without the shared goods your housemates provided, you may need to pick up some furniture basics (e.g. a bed, table and chairs) and whitegoods like a fridge, washing machine and microwave. Don’t forget your household needs either – that’s things like basic food staples, cooking equipment (crockery and cutlery), cleaning equipment (vacuum, mop, etc) and bedding.
Unexpected costs can pop up while you’re renting. If you need extra funds to cover your rental bond, truck hire, or removalist costs, we can help. Click here for more information.
Recurring renting costs
Utilities refer to things like electricity, gas, water and internet. Depending on your lease, some, all or none of these utilities may be included in your rent. It’s a good idea to set a few dollars aside each week for bills so you don’t end up with an invoice you can’t afford at the end of the month/quarter.
Check your previous bills for some idea of the average cost of gas, electricity and water. Make allowances for extra costs like heating in winter. If you need your utilities connected or disconnected for your move, we can help. Click here to find out more.
Renters contents insurance
Whatever you do, don’t skip on getting contents insurance. For a low cost, you can insure what matters most to you. In the event of fire or break-in, you’ll be relieved to know you have financial help to help replace your furniture, mobile phone, laptop, TV and other high-cost items.
This one’s a no-brainer. You’re going to need fresh food, plus maintaining your basic pantry/fridge staples.
If Fido made it onto your lease, then you need to allocate some of your budget to food and any future vet bills.
Renting with a car in an urban area can come with its own headaches, and parking spaces are often rationed out to renters. If your new place doesn’t offer a parking spot, you will need to budget for offsite parking charges.
You might have been accustomed to your parents’ washing machine at home, but now you’re moving to an apartment with a shared washer and dryer. Factor in the cost of washing your clothes at a local laundromat or using the shared facilities in your new digs.
Bus fares, car maintenance (insurance, registration, petrol) all add up. Make sure you’re keeping some money aside for potential vehicle issues.
Top tip: We know renting can get expensive. To make things simpler, why not consider RentBond? RentBond is a convenient way to pay your rental bond, as well as your 2 weeks’ rent-in-advance and other moving costs, provided by our partner Fair Go Finance. For more information and to get started, click here.