Renting an apartment isn’t as simple as paying a monthly rent on the house. The hidden costs associated with renting an apartment usually become a big part of your monthly expenditure. Let’s take a look at these hidden costs so you’re better prepared for them.
1. Security Deposit
This is the token amount that you will need to pay your landlord. The deposit amount can vary from anywhere between one to twelve months’ rent, depending on the property as well as the security deposit rates prevailing in the market at the time. The security deposit will be held as a sort of guarantee, and any damages caused to the apartment will be deducted from this amount.
Since you will be held responsible for the damages caused to the property upon moving out, make sure that you take a thorough look at the apartment with the landlord to point out any pre-existing damages caused to the property.
2. Fee On Utilities
Water bills, electricity bills, cable fee, and internet fee all come under the monthly utility fee. As a first-time renter, you’re probably unaware of, or not taking into account, these extra bills. You can draw out a rough estimate of your usage after a couple of months, but if you want to separate out a budget for these right from the first month, you can call up the respective supply companies to find out the average usage or strike up a conversation with your neighbors and gather some information.
3. Household Expenses
Several household expenses such as for laundry, parking, and grocery will also need to be taken into account. Even facilities like washing machines, gymnasium, and security within the apartment complex will most likely command extra charges.
4. Renter’s Insurance
Availing a renter’s insurance is your choice; however, it is highly beneficial and recommended. This insurance will basically protect you from any major loss that you might have to incur in case the apartment is damaged by a natural calamity, or in the event of fire or burglary.
5. Repair And Maintenance Charges
Although few landlords offer to take up the repair and maintenance expenses of an apartment, you will most likely have to deal with getting the contractors, buying all the necessary materials for the repair, and then paying them for the work. This can include a number of things like electrical repair work, plumbing, and fixing broken doors or cabinets. So prepare to shell out extra bucks every time you break a window pane.
My name is Abishek Kumar. I’m a Senior SEO Executive at CommonFloor.com, India’s first real estate portal with exclusive focus on apartments. I provide tips and how-to’s on property investment, real estate basics, and community living. For more property-related information, visit http://www.commonfloor.comShare on Facebook