The 5 Hidden Costs of Renting in the UK

Rent price is quite moderate in some parts of the the UK right now but the hidden costs of renting can take you by surprise and leave you out of pocket if you’re not aware of them. As rental rates continue to rise in the country, it’s worth taking stock of the five hidden rental costs aside from the cost of the rent itself that currently affect all tenants in the UK.

 

Advance deposit

It’s common practice for many landlords to request one or two months’ rent before you sign the lease. The amount will depend on a multitude of factors, including the credit rating of the potential tenant and the desirability of the property. A letting agency will also typically ask you for a holding deposit. While you may not need to pay agency fees if you’re renting through an agency (many of these are now banned), you will need to pay a deposit and possibly an additional pet deposit if you have a furry friend.

 

Renters insurance

Tenants contents insurance is something that 50% of tenants still refuse to get, partly because so many of them assume that the liability for contents insurance falls squarely on the shoulders of the landlord. That’s only true, however, for the landlord’s property. You are responsible for any of your own contents in the property and will need to take out renters insurance if you want those contents insured in the event of a fire, flood or burglary.

 

TV licence

Even if you are more into Netflix than the BBC, you’ll still need to pay a licence fee to watch television legally in the UK. Even if you don’t even own a TV and watch via laptop on catch-up sites, if the government finds you’ve been watching BBC content without a license then you will be fined. And it’s not a small fine either.

 

Council tax

Again, this is a cost that many first-time renters wrongly assume is taken on by the landlord but that;’s not the case. Depending on the size of your rental property you might have a quite hefty council tax to pay every month to cover everything from bin collection to the local services.

 

Utilities

There are some landlords that include utilities as part of the overall package but those packages are becoming rarer and rarer by the year. So remember to factor in the cost of your gas, electricity, water, broadband and phone before making any financial plans.

If you take note of these hidden costs then you should be able to rent a property in the UK without much trouble. Always remember, however, to get a receipt from your letting agent or landlord when you make any payment and always try to foster a respectful relationship.