About to buy a new apartment? The money aspect is definitely the most important part that you have to consider in this case, and one you do not want to get wrong at all costs! Here are some of the most important financial questions you should be asking before you agree to rent a property:
- What are the terms of the lease? – The lease is the most important part of renting an apartment, whether that is a small studio apartment or a large 3 bedroom apartment Broadway. You want to read the main details of how the lease will be drafted early on, ideally before you even check out the apartment (because you do not want to be disappointed to find a lease that won’t work for you after everything!). The lease dictates everything from how and what you pay to the rules that apply for the duration of your stay at the apartment. Many people tend to skip the fine print and sign the lease, but that is a big mistake – make sure to properly read the lease (twice is even better).
- What is the actual cost of living in the property? – What is usually advertised are the rental fees of a property, not the actual cost of living in it? To put it more simply, you may feel like you can afford that new serviced apartment with your current salary and savings, but living there might actually be very unaffordable to you. Living is a vastly different topic, and it includes all the expenses – both minor and major – that you will incur for the duration of your stay. Utilities tend to be one of the biggest expenses, and usually, they are not included in the rental fee. Ask your landlord or agent about the average expenses for a month, and gauge that against your current earnings. Can you really afford the place?
- What are the move-in costs? – Once you move in, you have to worry about the monthly payment, but before you move in, there are additional costs to consider as well. These are collectively known as the ‘move-in costs’, and generally include the security deposit and any other demands the landlord may have. For example, certain landlords may want you to pay the first month’s rent upfront, whereas others may want both the first and last month’s rent, or two to three months’ rent upfront. It varies, so ask beforehand.
- How will you pay your monthly rent? – And lastly, do not forget to actually consider how the monthly rental payments should be made. Depending on who your landlord will be – that is, whether it will be a management company or an individual landlord – the payment methods can greatly vary. For example, large companies managing a number of flats and residences will have online paying systems and the like, whereas individual landlords will prefer personal payments (especially if they live in the same complex) or bank deposits.