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  • Writer's pictureMartin Jones

How to budget for a new tenancy agreement.

In this short read, Next Move Homes Norfolk explains how to budget for a new tenancy agreement.

Before starting to look for a new rental property, it is worth being aware that during the first

4-5 weeks, you will have a number of outgoings whilst the new tenancy is being set up.

It is worth making a list of every expenditure to make each month and don’t forget to include one off pay outs such as car insurance or holidays so you can be clear exactly how much you can afford to rent a property for.

Your holding deposit is one weeks rent per tenancy, this is taken to secure the property. Landlords like to do this to ensure you are serious about renting the property and once this is paid, they will start the refencing process. This is returnable and normally taken off the first month’s rent.

Your deposit will normally be a total of five weeks rent per tenancy. So for example, if your monthly rent is £1200 your deposit will be £1384.61 (If the rent is over £50,000 6 weeks rent will be required).

Along with your first month’s rent, other initial expenditures could include the cost of furniture or any kitchen appliances.

Once you moved in, you will need to budget for regular monthly costs such as rent, gas, electric, council tax, TV license, broadband and any telephone bills. Occasionally some of these are included within the rent but the majority of the time these remain the tenants responsibility.

Remember too, that it is important to keep paying your rent and all other bills on time and in full, as this is likely to impact your credit score.

If you would like any further information or have any questions, please contact Next Move Homes Norfolk on 01603 536719

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