Hidden Costs of Renting: Everything You Need to Know

Posted by

Marina Cheal

on June 5, 2019

Although people have varying degrees of control over their general finances, one thing we tend to be pretty sure about is our rental budget. When we’re flat-hunting, we search by monthly price, and we know exactly how much we can afford to put down as a deposit.

In capital cities especially, these numbers are crucial. Markets are so competitive that we often have to stretch our budget to the limit to nab the right place. A look at the London Rents Map shows that large swathes of the capital have a monthly median rent of more than £2150, which means every penny counts.

What we don’t often take into account is those hidden costs of renting: the little extras that accumulate over the moving period and into the tenancy. We’re not talking about the obvious expenses like utilities bills and council tax; we want to cover those costs that tend to spring up as nasty surprises along the way, stretching budgets and credit cards to the limit. These are the costly parts of renting we forget to count up in our mental maths:

Lack of flexibility 

Traditional estate agents aren’t exactly accommodating for long-term plans. You might know you want to move in two months when you change jobs, but no agent will talk to you unless you’re ready to move in tomorrow.

In those situations, finding the right place can cost you in doubling up rent, having to use an Airbnb for a few weeks or having to compromise and run around at the very last minute. That’s why at Residently we believe that flexibility is your right as a renter. We understand that you might want to lock down a place a little while in advance, so you can plan the rest of your life – what’s more; we don’t penalise you for it.

Furniture, crockery, and cutlery

Furnished or unfurnished, that is the question. Plus, even if the landlord decides to leave a couch in the living room doesn’t necessarily mean the property will be livable straight away.

That’s why you should look for an agent that will furnish the place based on your lifestyle, not just what’s easiest for them and the landlord. At Residently we offer all our homes fully furnished – and by that we mean complete with teaspoons and teabags, so you can move into a real home as opposed to an empty shell.

Packing, storing, and moving

 Whether you’re a KonMari devotee or an unashamed maximalist, moving your stuff is painful. It also comes at quite a cost. You need the man, the van, and in some cases, somewhere to put your stuff while the move happens. All of this can add up quickly, especially if a short time in storage turns into a long one. Even if you call in favours or try to do it yourself, the car rental fees and time taken going back and forth really take their toll.

Ideally, your agent will take care of all of this for you. Yes, despite what you’ve seen, there are agents in London who’ll sort the move for you (nudge nudge).

Your time and mental state

During ‘moving week’ you’re constantly waiting around for moving people, deliveries and contractors, both at your old address and the new one.

If you’re lucky enough to work flexibly, you might be able to get through it without too many headaches - but if you’re in the office five days a week, there’s sure to be some disruption to your ability to work. Moving house has been known to stress people out and test relationships. You may even end up taking a holiday day or two to help out with the logistics of the move, which we can all agree would be better spent on actual holidays – which you’ll no doubt need one after the process.

Try and find an agent who’ll take the burden off you and do the running around for you. For instance, organising the removalists for you and sorting out the references without making you jump through hoops.

Chasing down the landlord

Picture this: You move into your new place and immediately you find that the boiler is complicated, the dishwasher is on its last legs, the washing machine is putting marks on your clothes, and you don’t have the time to get in there with a flashlight, but calling the landlord is a drawn out and unpleasant process. Do you spend time and money trying to fix it yourself? 

You shouldn’t have to put up with issues like this, because they’re stressful and they build up, and they can get in the way of your life. We make sure Residently Renters know everything about their property when they move in and it’s already in peak condition, so that tricky boiler won’t be an issue. And if they do have a problem, they just call us and we sort it straight away. 

Changing your details

It can be exciting to update your friends and family with your new address, but we forget how many other people and organisations need to know, too. And we don’t exactly keep a list of who knows where we live.

If a tax cheque goes to your old address it might end up in the bin without you knowing. Miss a parking fine or bill and you’ll cop the late fees, or even worse, a court summons. And if you’ve ever had an Amazon package sent to an old address, you know how much of a pain it can be to get it redirected.

At Residently we get it all set up for you, from utilities, to broadband, because we know that these are things that make your life easier from day one. 

The good news

Governments have stepped in around the world to provide some security for renters and protect them from predatory agents and landlords.

The Tenants Fees Act 2019 comes into force from 1 June 2019 meaning letting fees will be banned in England (they’re already banned in Scotland). Effectively this ends all payments ‘in connection with the tenancy of housing in England’, unless they’re on the government’s list of approved payments. Basically, tenants can no longer be charged for things like inventories, referencing, phone calls, postage, or anything else that takes up the agent’s time.

While you can be protected from some fees and charges, renters still need to be careful. To avoid nasty surprises, make sure you’re prepared and make double sure you’re renting through an agent who has your best interests (and your lifestyle) at heart.

A new breed of agents like us are using technology and new ways of thinking to shake up the rental industry to revolve more around the most important part – the renter. The old ways of doing things are just that, old. You should be able to pick and choose move-in and move-out dates that suit you. You should be able to customise your rental the way you want, even down to the art on the wall. We’re taking the transformations you’ve seen in other industries and applying them to renting, and we have some of the happiest renters around.

Find out more and see our properties here >