8 Hidden Costs of Renting in Today’s Market | Rare Techy
Savvy renters may think they have a good understanding of the costs associated with renting in the current market. Some of the costs are obvious, while others are not so obvious. These expenses can be an unexpected shock to your bank account if you don’t know in advance how to prepare to pay.
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Here are some obvious, and little-known, costs that renters should be aware of in today’s market.
Before signing a lease, renters should ask if they will pay for renter’s insurance.
Rachel Stults, director of Realtor.com, said a rental insurance policy is a great safety net that can save you from big expenses and headaches. Many landlords require tenants to have some type of coverage for their personal belongings in the event of an accident. Some properties claim to be a company.
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Beware of hidden costs associated with electricity. Andy Feiwel, a real estate agent with Compass in New York City, said indoor air conditioners (PTACs) use electricity for fans.
He said, “I’m pretty sure the thermostat is set too low when the unit is turned on, rather than running continuously.”
Some homes have built-in appliances for rent and others don’t. Tenants must be prepared to pay for certain utilities – such as electricity, gas, water or garbage – themselves. In addition, Stults said tenants must pay for their own cable and internet and cell phone service, and may be responsible for monthly pest control fees.
“Make sure to ask your real estate agent about how much you’ll be paying and how often,” Stults said, “so you can create a reasonable budget before closing.” to rent.”
Air/gas and sewer charges
Other low prices Feiwel has seen owners of large buildings charge their tenants. Before submitting your application, please check if this information is displayed first.
Do you want to park your car? Most properties charge a monthly fee for parking space. This fee will be paid quickly. In cities with limited parking, Stults said, you can pay more than $200 a month for a parking spot.
“If you have a furry family, be prepared to pay for them to be together,” Stults said. “It’s common to pay rent for pets and security deposits for renters these days. Even if you’re not a current pet owner but plan to be soon, you’ll want to factor in this extra cost.
Some rentals offer additional on-site storage units to tenants. The only catch is that you have to pay if you want to use it. Stults recommends asking about storage options in advance, and finding out if there are any and how much they cost.
Stults and Feiwel said there is an increasing tendency for buildings to charge for the use of common areas. These may include gyms, rooftop terraces, hot tubs, game rooms and Wi-Fi lounges, to name a few.
Although the decision to pay a down payment is different depending on the building, the initial payment may turn into a payment policy. Don’t expect to be 100% paid in retirement.
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This article originally appeared on GOBankingRates.com: 8 Hidden Costs of Rent in Today’s Market