What You Need To Know About Budget Planning

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Renting can be expensive. We have put together the main costs for tenants – including upfront, monthly and moving out expenses – to help first time tenants plan their budget when renting for the first time.

The current average rent for rooms in a shared property is £550  per month. Rent levels can vary significantly depending upon the size, location and condition of a property, so it is likely you will be able to find a suitable property, no matter what your budget is but the condition of the property may be different to your expectations.

What Rent Can You Afford?

When looking for a rental property for the first time it is important to start with a clear budget, so you know which properties you can realistically afford before you begin to book viewings.

If you are renting through a letting agent, you will most likely be referenced checked. At Luxury Hub, we reference every adult who will be living on the property. An affordability check is carried out as part of the referencing process to ensure that your income will sufficiently cover the rent. To pass the affordability check the combined monthly income which must be more than 3 times the monthly rental amount.

In cases where you don’t meet the affordability, it may still be possible to rent the property if you have a guarantor. Speak to the letting agent in advance to check their policy on using a guarantor.

Find out more about reference checks on our referencing page.

In addition to the monthly rent paid to the landlord, in most cases, you will also be responsible for the following costs;

Deposit

The amount you are required to pay for a deposit varies from property to property, the exact figure should be included in the online property advert. The deposit will be held in a Government approved scheme for the duration of your tenancy and will be returned when you move out after any costs for damage or cleaning have been deducted.

First Months Rent

In addition to the deposit, you will also have to pay your first months rent in advance when you move in. This is worth remembering as the two amounts combined can be a considerable sum.

Monthly Costs

Check if your rental agreement is including or excludes the following monthly costs? 

If you rent a room in a shared house Luxury Hub includes most monthly costs below(except the tv licence and telephone)

If you rent a whole property the monthly costs are usually excluded from the rent.

 Please check with your letting agent before signing, what’s included and not included.

  1. Council Tax
    As the tenant, you are responsible for paying the council tax. The council tax band will be displayed in the property advert, or you can search using the property address on the Scottish Assessors website. Contact the Council directly if you are exempt from paying council tax.
  2. Utilities
    It is usual for tenants to pay for utilities, such as gas and electricity when renting through a letting agent. Your letting agent should contact the utility providers to switch the accounts into your name when you move into the property, check with them to ensure this has been done.

    Most letting agents will be happy for you to change the utility supplier, if you find a better deal elsewhere, as long as you change it back before you move out. Always check with your letting agent before changing.

    The monthly cost of utilities will vary depending upon your use, however, you can check the properties energy efficiency rating, which will be included in the property advert. A property with a low EPC rating (A-C) should cost less to heat.
  3. Insurance
    Your landlord will have insurance for the property itself and any contents belonging to them, however, you are required to insure your own items.
  4. Other monthly costs include broadband, 
  5. Telephone and TV licence. 

Moving Out Costs

Cleaning

If your property was professionally cleaned when you moved in, you will have to have it professionally cleaned before you move out to ensure you don’t have cleaning costs deducted from your deposit. You can check the level of cleanliness when you moved in using the inventory.

Renting with Luxury Hub

At Luxury Hub, we can help you find the perfect place to live with our perfect mix of luxury, amenities & technology, reasonable prices, and expert local knowledge. We’re up to date on all the latest legislation, too. See our other articles and downloads on our website.