Cost and Fees Involved
Renting a property comes with a range of financial responsibilities, some one-off and others recurring. These can vary depending on the location, the property type, and the kind of tenancy agreement in place.
Here’s a breakdown of the common costs you’ll need to plan for:
Rent Payments
You’ll typically be required to pay the first month’s rent upfront when your tenancy begins. Rent will then be paid on a regular basis (usually monthly), unless a different arrangement has been agreed upon.
Security Deposit
For most Assured Shorthold Tenancies (ASTs): • If your annual rent is under £50,000, the deposit is capped at five weeks’ rent. •For annual rents above £50,000, it increases to six weeks’ rent. For non-Housing Act tenancies, deposits are generally the equivalent of six weeks’ rent, unless otherwise agreed.
Letting Agent Fees
If you're entering into a non-Housing Act tenancy, you may be charged for reference checks, inventory check-in, and preparation of the tenancy agreement. For ASTs, tenants are not charged any agency fees due to legal restrictions.
Relocation Costs
If you're hiring a removal service, renting a van, or storing belongings temporarily, these expenses should be factored into your moving budget.
Utilities & Bills
As the tenant, you’ll usually be responsible for paying: •Electricity and Gas •Water Rates •Council Tax •Phone Line and Broadband •TV Licence •Contents Insurance for your personal items
Potential Rent Increases
If your tenancy agreement includes provisions for rent adjustments during your term, be sure to factor in how this might affect your budget over time.