What should be in your renting budget

When most people think about renting a property, their main budgetary focus is the weekly cost of the rent.

But there are a few extra expenses everyone should be aware of when it comes to renting, particularly in the period just before you move in.

Whether this is your first experience renting or you are moving from one rental property to another, here’s a quick insight into what you should account for in your renting budget.

Rent

The weekly rent is the largest ongoing expense. As a general rule of thumb, the weekly rent should cost no more than 30 per cent of your weekly income.

This ensures there are enough funds each week for general expenses, groceries, and transport in addition to the cost of renting.

That said, the rental market where you intend to live might mean the cost of renting in your area is higher than 30 per cent of your budget, and if that’s the case it’s important to make the necessary adjustments elsewhere in your budget to ensure you can pay your rent each week on time.

Bond

If you’re moving into a rental property, the bond will be one of your largest initial outlays. A rental bond usually equates to four weeks rent, but can be more in some instances.

This lump sum of money needs to be held when you sign the rental agreement.

In addition, you will also be asked to pay two weeks rent in advance on the date the rental agreement commences.

Electricity and gas

When you move into a rental property, you will need to establish an electricity account in your name. This may command a connection fee that varies from one provider to another.

If the home requires gas bottles for the hot water system or stove, you will also need to set-up an account with a gas provider.

You may also need to pay for an initial delivery of gas bottles to service the property.

Phone and internet

As a rental occupier, you are responsible for your own telephone and internet account, and there may be a set-up fee required to establish that account.

Moving costs

Depending on how you approach it, moving can cost either a little or a lot. But it pays to be mindful of this expense in advance, so you can budget for it.

Professional movers who undertake the entire shift on your behalf can be expensive, while doing it yourself might take time.

Cleaning

If you’re leaving one rental property to go into another, you will need to account for cleaning your previous property.

You can choose to undertake this cleaning yourself or have a professional bond clean completed, which might cost anywhere from a couple of hundred dollars to over $500, depending on the size of the property and the scope of work involved.

Insurance

This one is important. As a rental occupier, you are responsible for insuring your personal effects, such as furniture, clothing and any valuables.

This contents insurance will then be a monthly or annual expense that is worth keeping in mind, but it offers the comfort that if something goes wrong, your personal items are covered.

How we can help

Our experienced property managers pride themselves on establishing great relationships with both rental occupiers and owners.

We manage every property as if it were our own and you can learn more about our property management services here.

Alternatively, you can find further advice on things to consider when moving into a new rental here, or if you are looking to rent a property, you can view the properties we currently have available here.