Opting to rent is great for many reasons; You save in certain aspects, you have a certain sense of flexibility and freedom that comes without a tied down mortgage and you always have someone to talk to if you ever seek professional advice, financial details or require any support. But not just that - it is always perfect practise whether you are unsure on what area or city you would like to live in, your job or lifestyle requires you to be a frequent traveller or it is indeed your very first move, and you are still learning the ropes.
So what exactly is the financial reality of renting? Let’s take a look…
The Financial Reality Of Renting…
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Plan In Advance | Outline Overheads, Communicate & Budget
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The importance of paying your bills on time
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How to pay your bills on time
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Who and what else matters?
Plan In Advance
Are you a Student moving away from home for the first time? Or a young Professional looking for accomodation close to work? Or are you in the market for the perfect Family Let with your partner as you plan your future? Whatever particular letting you are looking for, nine times out of ten you will be making the big move with a friend, family member, partner - or even a complete stranger as part of a house share!
The first thing that you need to do is PLAN. You will have a consistent bill coming out of your bank every month that you must ensure that you can pay to keep your roof over your head. So how can you manage what to plan for, we hear you ask:
- Outline Your Overheads
Grab a pen and paper and jot down exactly what bills come out of your bank account each month. What do you pay for on the regular? Groceries? Mobile phone contract? Car payments? Whatever it may be, jot them down and add up exactly your amount of overheads that leaves your account without you touching it.
- Plan and Communicate with your Housemates
Good communication is key. Learning to share the load with your housemates will help everyone budget their payments and chip in when and where needed. Calculate exactly what payments you need to meet to rent your property, and share the cost equally between you. Now we know that sometimes life can throw curveballs, and if you find that one month you are struggling to make ends meet, set a date with your housemates (for example, two weeks before the bills are due to be paid) to speak up and say if you need help - then this way the issue gets noted, picked up by your peers and the payment can be met by an alternative for that month. Good communication can solve any obstacles that get thrown your way!
- Learn to Budget
And finally, once you have planned exactly what you can afford, and who will pay for what and when - your last step is to learn to budget. You have a responsibility now as a young adult living in your own pad - afford to keep that roof over your head the best you can! Be sensible with your money and prioritise. You feel particularly stretched near the end of the month, but your friends ask if you fancy going to the pub… can you afford it? Will it put pressure on you at a later date? Then it’s simple - don’t do it! Learning to say no can be one of the most freeing things when it comes to saving money. Live within your means and don’t cause unnecessary stress for yourself when you know you cannot afford something.
What payments to prioritise and budget for:
If you struggle to budget, why not one of these free apps?
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Money Dashboard - helping you budget for the future
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Yolt - got multiple accounts? Track your spending in one place
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EMMA - because we don’t have money to waste on unnecessary subscriptions
The Importance Of Paying Your Bills ON TIME
If there is one important area in life that you must nail your organisation - it is where money is concerned. Money can be hard to earn but incredibly easy to spend, and when you live with people who rely on you to help make ends meet, it is important that you organise your income.
- Credit Rating
If you are thinking of buying a house in future, or buying that brand new car you have had your eye on, then you may need a personal loan to achieve it. But if you miss a payment or you don’t pay your bills - you could end up with a bad credit rating making it harder to borrow money in the future.
- Responsibility
Don’t ruin your housemates chances. If you are named on any bill, you are responsible for making the payment meet. For example - if you wish to borrow money in the future, and you have been extra careful with your payments and met bills on time, every time - but your housemate fails to - this could also ruin your chances!
- Going Without
If you don’t pay your heating or phone bills - you may find yourself cut off until the payment is made.
- Court Summons
Certain bills such as TV licenses and Council Tax must be met otherwise it could lead to a court summon - which you definitely do not want!
How To Pay Your Bills On Time
There are a few things that you can do to help you pay your bills on time.
- Share The Bills
Work out a system for what each housemate will pay and when. Then come up with a doable method of transacting the money. Whether this be opening a joint account or setting up a standing order.
- Technology
One thing that you will most likely never be without is your phone, right? Set calendar alerts to remind you when you pay which bill. Keep a log of everything in your notes section. And as we mentioned above, there are many apps that you can utilise for FREE these days that help you to budget and pay your bills on time.
Who and What Else Matters?
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The Council - For your Council Tax Payments
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Your insurance Company - Whether it be House or Car insurance
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The DVLA - The address on your driving license will need to be updated
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Any companies in which you have a loan, payment plan or investment with
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Permission To Vote - Not only do you need the correct address in order to vote but finance companies will use the electoral register as a tool and staying registered at an old address could affect your credit rating
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Your Bank - Your cards and payments will need to be updated
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The Doctors - If you have moved out of the area, you will need to re-register
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The Royal Mail - Remember to redirect your post!
Get In Touch With Taylored Lets!
We hope this blog post has been helpful! If you require any further assistance with any of the topics we have touched on, or you have seen a particular property of ours that you would like to discuss and arrange a viewing for - then please don’t hesitate to get in touch today!
We have a range of Student, Professional and Family Lets available across Newcastle upon Tyne, just waiting for you to call them home. Give us a call on 0191 447 1718 or email us at info@tayloredlets.com.