This is What You Need to Know During Your First Year of Renting
The start of a new year can see many fresh high school graduates looking to find their feet and independence. For many, this means moving to the city and commencing university. Subsequently February is one the busiest months of the year for both students and real estate businesses with demand for accommodation in January and February significantly spiking. Our team recorded a 41% increase to be exact over the past two months compared to the previous quarter.
This demand can heavily impact the cost of rentals during this period, with some tenants willing to spend an extra $50 per week just to secure a property that is close to their university. For anyone new to the rental market, it can be a very daunting and an unfamiliar process, and most are unaware of any additional costs that they may face alongside their weekly rent when they are looking to apply for properties. But don’t worry, we’re here to help.
Upfront costs to consider include your bond (normally four weeks rent) and a first initial two weeks deposit which will help you secure a property when you are approved.
It’s important to also consider some miscellaneous moving costs when budgeting that you may not initially think about. This can include moving fees, internet set up, household furniture, whitegoods (fridge, microwave and washing machine) and renters insurance to cover the cost of your contents in the case of fire or theft.
You may also want to allocate money towards setting up your pantry with basic grocery food items such as condiments, snacks, etc as your first shop in a new home can be expensive if you’re moving out of home for the first time.
Over the course of the year, you will receive utility bills for electricity, gas (if your property is connected to a gas line for hot water or your stove top) and the internet.
Additionally, you may be required to pay the water bill, however your property manager would have outlined this in your tenancy agreement before you moved in if you were required to do this.
Other optional costs to consider when creating your budget include contents insurance, subscriptions like Foxtel, Netflix, Stan and Spotify or any furniture hire fees.
Sometimes these charges may be included in your weekly rent, but again, this would have been outlined by your property manager in your tenancy agreement.
Our tip for avoiding financial stress when the bills come in? Set up a bank account with an automatic direct debit each week that you can set aside $10 or $20 to help cover the cost of each bill when the arrive each quarter.
Before the year progresses any further, it’s best to consider all these costs and work out a weekly budget. You may consider the possibility of renting with friends or flat mates to share the burden of the cost which is a good option, just be sure to check with your property manager first and provide the necessary application forms.
Want to make your new rental home feel more like home? Check out our five tips here.