Are you considering moving out on your own for the first time? This can be a great idea and help you earn the independence you want. However, it is important that you realize the financial burden that comes with renting your own place and know how much it costs. Hopefully, you have already considered the amount of rent you will owe each month, to ensure you can afford to pay it, but what about the other expenses. Below is a look at several additional expenses first time renters can expect to have to pay when renting their first place.
Since this will be your first place, you will not have any of the furnishings necessary to move into a new home. Therefore, you will need to purchase all of these additional items, such as furniture, dishware, lighting, toiletries, appliances, cooking utensils, and many other household needs. It is important that you set money aside to purchase these items for when you first move into your apartment. You can help save yourself some money by purchasing most of these items at second hand stores or online auctions.
You will also be responsible to pay the council tax once you move out into your first place. This tax varies by location, so you will need to find out before you move in how it will cost in your specific location. Each district also offers a special program that reduces the amount of council tax for low-income families. If you think you might qualify, you should see your local tax authority for more information.
In some cases, the property owner may agree to pay for some of the utility expenses, but otherwise you will be responsible for these bills, as well. This includes water, gas and electric, as well as, phone, internet and TV if you want those services. Your water supplier will be based on the specific location of the home you are renting, but you can shop around for the best deals on your gas and electric bills.
Depending on your property owner, you may or may not be required to purchase renter’s insurance. This insurance covers all of your personal belongs in the home and will pay to replace them if they become damaged or stolen due to fire, theft or other circumstance that was out of your control. It is always advised to purchase renter’s insurance to protect your property.
If you are planning on moving out on your own, the first thing you want to do is prepare a budget that includes your rent, all of the factors listed above and additional personal expenses, such as car insurance or school tuition. This will help to ensure that you can actually afford to move out on your own or not. If you cannot afford to move out, you may also want to consider finding a roommate so you can split the costs or look for a cheaper apartment.
This article was written by Low Income Loans Assistance, a personal finance blog in the UK which helps low income earners with lending information and tips on how to save and manage money.