The Cost Of Renting

There is lot more to the cost of renting than the amount of the monthly rental charged by a Landlord. Tenants have to analyze how much of a home they can afford looking at all costs of renting to avoid problems down the road.  First look at the upfront costs. These are Application fees, Screening Fees, HOA or Condo Association Tenant Approval fees, Security Deposit required, Pet Fee and/or Pet Deposit, moving fee, any lease administration fees and any other fee that may be charged by the Landlord or its Management Company. As a Tenant you need to carefully read the Application, Rental Requirements and Lease Agreement to know the total upfront cost and funds needed to move in. Then check the moving cost, as part of the cost of housing for somebody that rents, the moving cost must be taken into account. A tenant that moves every 12 months from one place to another will have to factor in these moving costs more than somebody that moves into a property and remains there for 5 years until moving again. You need to spread these moving costs over the term of the tenancy and count with the necessary cash to front this expense when time comes.

Then there are the monthly costs, being the Rent the first and most relevant cost but there are many other costs you need to be aware of which you will be responsible to pay on a monthly basis such as utilities such as electricity, water, cable, even trash collection and then additional services such as internet, cable TV, etc. Read the Lease Agreement ahead of time and see what utilities are included and which are not. Also see if any additional services such as cable or internet are included in the Rent and which not and find out if there are any other fees associated with the rental such as parking fee, gym fee, and costs or deposits for fobs and entry cards.

The rule is to read very carefully the Rental Application, Lease Agreement and Addenda and any other document related to the leasing of the property so you really know the total cost of renting a particular unit or house. Identify all renting costs and check if you can afford the property you want to rent. Freddie Mac has put together a Rental Calculator to help tenants with this analysis, please copy paste in your browser the following  LINK:

https://myhome.freddiemac.com/docs/monthly_budget.pdf