How Much Should You Save Before Renting or Moving?

Before you begin any move out there are certain things that should be kept in mind to ensure a comfortable transition. The most important of them being managing your finances. That being said, how much money would you need to set aside to be comfortable and confident in your moving decision? There are a multitude of costs that can build up when relocating homes, so you'll have to know how much to set aside to keep you afloat when unexpected costs arise. As a baseline of expected costs there is your monthly rent and security deposit, but you will also encounter many other costs associated with moving in to your new place. These costs will stack up so quickly it could give you whiplash, which is why it is so important to be prepared. You will need enough money to cover the costs of renting a home as well as your day to day costs for food and more.

Rent Payments 

Many landlords will require their new tenants to pay rent for two months upfront; this is the first month's rent as well as rent for the last month. So don't be shocked when you're suddenly expected to buy double your rent.

Renter's Insurance

Most likely will be required to obtain renters insurance (this is not true in all states/locations). There are many places you can find rental insurance, some cost more than others and offer different coverage options. A thorough search on Google should help you locate a reputible company that has a price in the range you are seeking for the coverage you want. Insurance can not only cover personal items in some scenarios but also the property if something bad were to happen.

Security Deposit

In order to rent a home you will have to put down a security deposit. These deposits can sometimes be the same as your rent payment for one month, however in some cases it can be less if you have good credit. So it really pays to work on credit and plan ahead when you want to move.

Application Fees

In order to even have your rental application considered, many landlords charge an application fee. These fees can range between $25-100. Landlords will perform a background screening to check the validity of the applicant and their history. These screenings generally cost around the same amount of the application fee charged. Most renters will submit several applications before finding the perfect match. So this means ideally you should have $100-$200 set aside to cover your application fee costs.

Pet Fee(s) & Deposit(s)

If you are moving in with a beloved four-legged friend there may additional deposits and/or payments that you need to make. It is imparitive that your landlords know exactly what type of animal will be moving in. The last thing you want is for your landlord to find out you have an animal from someone other than you. So prepare, know it is coming if you have an animal. 

Utilities

The cost of utilities like electricity, internet and water vary throughout the year. You can make an average estimate of how much these costs that way you at least know about what the cost will be. In total you should save between $250-$300 dollars for your first month dedicated to utilities (turning on, transfering, etc). Depending on your contract and whether certain utilities are included in your rent or not, you will be able to give a rough estimate of your monthly expenditure(s).

Furnishings

If you've gotten rid of most of your furniture and want a clean slate moving into your new home, buying new furniture and decor is a must. However you will need a pretty decent budget to put together necessities for a comfortable home. You may need to buy appliances such as a microwave, washing machine or a dishwasher. The list can go on so prioritise according to your budget.

Moving Costs

Moving is not easy. Simply put, not many people realize what they are in for when packing up boxes, and preparing to move. Those that do know how difficult and taxing it can be on you and your body. Some opt to hire a professional company to handle the moving, but even though the payment doesn't come from your hurt back or worn out body, they will charge you a hefty sum of money. You can pay anywhere between $1400 to $6000 (sometimes even more). If you're trying to save money and reduce these charges you can opt for a moving truck and moving supplies which will cost you less.

When adding up the costs above with the expected monthly spending for miscellaneous day to day items like groceries your budget will increase greatly. Overall you should save aside at minimum three to four months rent to comfortably transition you through this process. But if you think about unexpected emergencies and expenses you may want to save up to five months worth of rent.

For more information on renting, rentals, houses for rent in Toledo, Ohio and more contact us today!