Renting an apartment is a great option for those who are not ready to buy a home. Buying a home requires you to have savings for a downpayment.
Even those who do have the finances may prefer to rent, as they are not interested in settling down in one place just yet.
Renting can be the best financial decision for people not ready to become homeowners. You can hang onto your savings and you don’t have to pay for maintenance. However, there are some expenses you may not expect when renting a home.
1. Renters Insurance
Since you do not own your place, you don’t need insurance for the structure itself. But that doesn’t mean you don’t need insurance at all. Apartment renters insurance is a necessity when it comes to financial security. What does renters insurance cover?
Renters insurance covers all of your possessions for theft, loss, and damages. Without it, burglary or break-in could leave you bereft of everything you own. It also covers personal liability. If you accidentally cause someone else damages, it will pay out any claim they bring against you.
The good news is that renters insurance is very affordable. You are likely to pay between $5 and $15 a month.
Your landlord may include utilities as part of the cost of the rent. However, many landlords today will bill you for what you use every month.
If you’ve never paid for utilities before, you may not be prepared for just how much they will cost you. This is especially true if you are working from home, as you use electricity and water throughout the day.
Before you start renting, ask to see a sample utility bill. This will give you an idea of how much you can expect to pay. Even if the previous renter used utilities very differently from how you will, the variations in cost will not be too monumental.
WiFi is another item that is covered by some landlords and not by others. Good WiFi shouldn’t cost you an arm and a leg but it will make an impact on your budget.
In 2022, you need fast internet, especially if you stream most of your content. As the quality of digital content improves, it requires more and more data and bandwidth to run smoothly.
Having a landlord who includes WiFi in the cost of rent can be convenient, but you may be better served by going with a plan you organize yourself. This ensures that you get the speeds you need and don’t overpay. It can also contribute to improving your credit score.
4. Apartment Fees
In addition to what you pay your landlord, you may have to pay fees charged to every resident in the apartment building. These may include a fee for the laundry room, pet fees, parking fees, and even maintenance fees.
The maintenance fees are not for the maintenance of your unit, as that is the landlord’s responsibility. Rather, they are for the maintenance of the building as a whole.
Cleaning your apartment can be time-consuming and tedious. But you may not realize that it can be expensive as well. You are going to need to buy cleaning equipment, as well as regularly stock up on detergents.
Occasionally, you will need to pay for equipment for the deep cleaning of carpets and upholstery. It may be worthwhile to get professionals to take care of deep cleaning, as they own expensive equipment that you do not need most of the time.
Renting an apartment can help you save money and is certainly a cheaper option than buying a home. However, there are associated expenses you should be prepared for.