Are you planning to rent a house but don’t know where to start? Don’t worry because this post will help you. Renting a home may impact your lifestyle, financial health, and personal goals. Unlike building a house, you can have predictable monthly expenses and flexibility if you rent a house.
Average cost
The average cost of renting a house is over $1,200 monthly. It is believed that this standard cost may increase in the following years. You don’t need to spend on major repairs and property taxes if you rent a house. However, expect to pay upfront costs, including move-in fees, application fees, security deposits, and pet deposits.
You should also be prepared for recurring costs like homeowners’ association fees, renter’s insurance, utilities, and other items included in the rental agreement.
Upfront costs
If you rent a house, expect to pay upfront costs. These are:
Application fee
If you rent a house, you can encounter an application fee of about $30 to $60 each person. You will be required to fill out an application.
First and last month’s rent
Another requirement for renting a house is to pay for the first month of rent. Additionally, you may also be required for the last month of rent.
Security deposit
A security deposit can range from $250 to $1000. It may be equivalent to one month of rent.
Moving expenses
You may pay a higher fee if you have more stuff to move.
Appliances
If you rent a house, you may purchase a few appliances, including a refrigerator, dryer, washer, and microwave. It is essential to ask which appliances are available, so you can decide which appliances you will need to buy.
Pet deposit
If you rent with your pet, choose a house with your dog approved. It can result in eviction or penalty fees if a pet is not allowed in the apartment.
Recurring costs
One of the top expenses you need to pay is the rental fee for each month. Don’t be late in paying your rent to avoid late payments, which may range from $50 to $100 on the first day late.
You may also be required to get a renter’s insurance which can cost you $15 monthly. You can also pay continual expenses for pest control, trash valet, parking/ garage, electric and gas, water, and sewer bill, internet, storage space, monthly pet fee, and other amenities.
Hidden costs
As a renter, you should be ready for hidden expenses. It may include tenant repairs. Even if you don’t need to pay for repairs, you should be careful not to break or damage amenities in the house to avoid unwanted charges.
You may also consider the cost of yard maintenance if you rent a house. You can pay for a yard maintenance service or buy maintenance tools. You can ask the landlord what’s required of you, so you can be ready for your finances.
It is also essential to be prepared for move-out fees. Your landlord may require you to pay to make carpets cleaned professionally before you move out. Usually, landlords may use a security deposit to pay for such repairs.
Conclusion
To sum it up, the cost of renting a house can also depend on the requirements of your landlord. You can pay upfront, recurring, and hidden costs as a renter. Unlike building a home, you don’t need to spend on major repairs if you rent a house.
If you rent a house, you can have a predictable expense. You can plan since you will pay the fees monthly. Meanwhile, if you enjoy a luxurious lifestyle and find renting a house more expensive than owning a home, you may buy real estate.