Working out my rental budget
It is important that you make the estimate for your budget as accurate as possible. Some of the things you need to factor into the calculation are:
- Utilities
- Internet access
- Telephone line
- Electricity
- Cable television (if necessary)
Most of the things listed above aren’t generally provided by landlords and if you enlist the help of a property agent, your agent will more than likely do the leg work for you. However, it is still useful to know what you will probably spend on and how much you will ultimately need to set aside.
Besides the monthly rent, the following is a list of additional costs you are likely to incur when renting a residential property.
Good faith deposit
The good faith deposit, also known as the booking deposit, is to be paid after the landlord signs the tenant’s Letter of Intent. It is the equivalent of one month’s rent.
Security deposit
The security deposit is paid after the signing of the Tenancy Agreement. It is usually paid together with the first month’s rent, less the amount of the good faith deposit, immediately after signing the Tenancy Agreement. It will be refunded to the tenant upon expiration of the term of lease. The amount of payment to be made for the security deposit is usually specified in the Tenancy Agreement.