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Establishing your budget and finances

Understanding what your budget is before you start your search will give you a realistic idea of the size, location and type of property you can afford and make the search process much more efficient. When calculating your budget, there are a number of factors to consider:

Offer stage

When you have found right property you will need to secure it through making an ‘offer’. This usually includes the following costs:

  • Tenancy administration fees – to cover the cost of preparing the tenancy agreement
  • Inventory check in - this is for processing the inventory of the property at the start of tenancy

Referencing for individual tenant or guarantor - Reference checks are carried out on prospective tenants to confirm that they have previously rented without any major issues. Credit checks are carried out to ensure that prospective tenants can afford the monthly rent and have no serious adverse credit problems. The Housing Act 2004 makes provision for both the protection and return of a deposit, and the resolution of any disputes over the return.

For more information talk to a KFH letting agent.

Offer accepted stage

If your offer has been accepted (subject to contract) then before the tenancy starts you will need to make the following payments at this stage of the process:

  • Rent – usually equivalent to one month’s rent

Security deposit – six week’s rent. This deposit is assurance to the landlord that when you move out, their rented property will be left in a good condition. If the property is not left in a state fit for purpose your landlord or letting agent may deduct your deposit if there is any damage to the rental property. This deposit will be held by a government backed Tenancy Deposit Scheme (TDS). Further rent payments will be collected via direct debit from your nominated UK bank account. All deposits, held by KFH for assured shorthold tenancies will be protected by the Tenancy Deposit Scheme.

Tenancy renewal stage

At the end of your fixed term tenancy, you may wish to extend or roll on your tenancy as follows:

  • The tenancy renewal fees – this covers the cost of preparing your renewed tenancy contract

For more information talk to a KFH letting agent.

How to calculate you rent

  • To help calculate your monthly outgoings, have a look at this helpful budget planner

Will there be any other costs?

There may also be some other costs throughout your tenancy, including:

  • Amendments or changes to the tenancy term - Should you wish to make any changes or amendments to the terms of the agreement once the tenancy has started then, dependent upon your landlord agreeing, we will draw up an addendum to the agreement
  • Early release – If for any reason, you request your landlord to agree to ending the tenancy earlier than the end date set out in the tenancy agreement (or in line with any break clause included in the tenancy agreement) then he/she does not have to agree to this. However should your landlord agree, then he/she can ask you to reimburse him/her for any financial loss he/she might suffer as a result
  • Change of sharer - If you are sharing with more than one person, your landlord does not have to agree to you changing any of the named tenants during the tenancy term. However he or she may agree to do so subject to you reimbursing him/her for any financial loss they may experience as a result of ending one tenancy early and creating a new one. However he/she may agree to do so subject to you reimbursing him/her for any financial loss

To find out more information about KFH fees talk to your local letting agent.

Household bills

If you are unsure about bill costs once you have decided on a property, ask your letting agent, who may be able to provide you with an estimate of utility bills based on the current tenants’ utility costs.

You can also find out the council tax band and associated costs of your property by entering the postcode into KFH’s council tax information page.

Typical household bills may include:

  • Council tax
  • Energy – gas and/or electricity
  • Water
  • Telephone
  • Broadband
  • TV licence
  • Digital or satellite TV
  • Service charge – applicable on managed properties, unless included in your rent
  • Contents insurance

It is important to always keep on top of your monthly bills, to maintain a good credit rating.

 

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