Knowing what you can afford and costs to expect

The costs of running your home can add up and the initial cost of moving and setting up your home can be costly.

When thinking about how much you can afford to spend on your monthly rent it’s important to consider any additional costs you may need to pay, including other outgoings and financial commitment you may have.

Here are the typical costs of renting and some suggestions as to how to best manage them:


Rents are usually quoted as either price per week (ppw) or price per calendar month (pcm).

When switching between the two figures, it’s important to remember that the price per calendar month does not equal the same as four weeks’ worth of rent. Instead, the monthly rent is normally calculated by taking the weekly rent and multiplying it by 52 (the number of weeks in a year) and then dividing by 12 (the number of months in a year).

For example, if the rent is £300 per week then the monthly rent would be £1,300.

Tenancy deposits

Tenancy deposits are typically the equivalent of 4 to 6 weeks’ worth of rent.

For more information, go to our section on tenancy deposits.

Tenant fees

At the moment, agents still charge various tenant fees however there are plans to ban tenant fees, although the detail, and exact date of when this will be happening, is yet to be confirmed.

Regardless, all lettings agents are required to clearly display all fees that will be applicable during the tenancy, whether payable at the start, during or end of the tenancy.  The displayed fee should be the total fee, including VAT, so that you are clear as to what you will need to pay.

If you haven’t been notified in advance of any potential charges, it is considered unreasonable for you to have to pay it.

As each agency varies, it is important to understand which charges they levy and what they are for.

IMPORTANT: Check if the charges are per property or per person and whether any of them are refundable if for any reason the tenancy does not go ahead.

Some of the typical fees that you may encounter are:

  • Referencing check
  • Guarantor check
  • Credit check
  • Inventory check in
  • Agency administration fee
  • Deposit protection fee
  • Weekend move in charge
  • Tenancy renewal
  • Check out
  • Tenancy amendments
  • Late rental payment
  • Change of permitted occupier
  • Early termination of tenancy
  • Cleaning


For most long-term tenancies you would expect to be responsible for the payment of all the utilities, including gas, electricity, water, and council tax along with the cost of media and TV licences. If you are eligible for a discount on your council tax (for example because you live alone or are a student) you would need to apply to the council directly to have this discount applied as the landlord or agent cannot do this for you.

The tenancy agreement should allow you to change utility suppliers with consent from the landlord which would not be unreasonably withheld.

If you are taking on a fixed term contract/price plan, say for electricity or broadband, you should always check that the account can be closed if you leave the property, or taken with you to a new property. There may be penalties from the supplier if you were to leave the tenancy early.

Credit Card Payments

Many agents and some landlords will take payment of the initial money (and sometimes ongoing payments) by credit card.  Unlike supermarket purchases, the cost of paying by credit card is not included within the rent and so an additional premium may be due to cover the cost of the transaction.

Cash flow

Generally, if rents are paid monthly they will fall due on the same day of the month that the tenancy started.  The payment dates don’t always coincide with salary payment dates and so if your rent falls due shortly before your salary is paid, it may be worth asking the landlord to move the payment date.  You will probably need to make an additional payment covering the rent between the old and the new payment date, but in the long term, it can often make your finances easier.  If this is something that you would want to do it is worth agreeing on it in advance as part of the contract as once the tenancy agreements have been signed and the tenancy started, the landlord is not under any obligation to agree to changes to the rent payments.


If you are going to share your property with a flat mate or house mate, make sure that they are named on the tenancy agreement.  If they are not on the agreement, they are not legally liable for the costs and so in the case of a problem you could end up being liable for everything.

If you are thinking of renting a room out to a lodger or someone not of the tenancy agreement, you will need to get consent from the landlord to do this.  Any rent paid to you by your lodger may be subject to income tax too as for the purposes of the lodger you become their landlord.

The long term

Staying long term in the same property can provide good savings. If you take a longer-term tenancy you can lock in the rent payment for years rather than months and if the landlord does want to include some rent increase at a later date, you can agree this in advance so that you can plan for the future.

Longer term tenancies also save on the costs of moving, potentially overlapping rents in your old and new property, additional fees and the time commitment you need to make to the move.