Extra costs that tenants should be aware of
Category News
Renting a home is often seen as a flexible and convenient option, especially in today's fast-paced world. Whether you're new to renting or have been hopping between rentals for years, there are some extra costs that tend to slip under the radar. You might think, "I'll just pay rent, and that's that," but, as many tenants soon discover, there's more to the story. In South Africa, renters need to be mindful of a handful of additional expenses that come with signing a lease. Let's break them down, without too much of a headache.
1. The security deposit
The security deposit is the upfront cost that landlords ask for, typically equal to one or two month's rent. This can be a bit of a shock to the system when you realise you need to fork out thousands of extra rand before you even move in. The security deposit is essentially the landlord's insurance against any damage you might cause to the property. Ideally, when you move out, and if you've treated the place like it's your own (without putting a hole through the wall, for example), you'll get this money back. The refund process can take a few weeks, and deductions can be made for any repair work or cleaning that needs to be done.
2. Utilities: more than just the lights
Water, electricity and gas are not usually part of the package when you rent a home. Some landlords include utilities in the rent, but more often than not, it's up to the tenant to cover these. This can vary depending on where you live, with some municipalities charging more than others. You'll want to keep an eye on your usage, especially during those cold winter months when heaters, geysers and longer showers can skyrocket your electricity bill. Remember, it's not just the lights that are eating into your budget. Appliances like fridges, washing machines, ovens and even your Wi-Fi router add to the overall utility bill.
3. Home contents insurance
Here's one that doesn't immediately come to mind: home contents insurance. While your landlord will (hopefully) have insurance on the property itself, that doesn't extend to your personal belongings. In the event of a break-in, fire or flood, it's your responsibility to protect your items. Home contents insurance covers everything from your electronics to your furniture and clothes. Depending on the value of your belongings, it can be an affordable monthly cost, giving you peace of mind knowing that if anything goes wrong, you're covered.
4. Furnished vs. unfurnished rentals
When choosing between a furnished and an unfurnished rental, it's easy to think that one option is obviously cheaper. But let's unpack that a little.
Furnished rentals might come with everything from beds to cutlery, making this a great choice if you're just starting out or looking for something short-term. The downside? These places often come with a higher monthly rent because, after all, you're paying for the convenience. Plus, if anything breaks, you are likely to be responsible for repairs or replacements, depending on the terms of your lease.
On the other hand, unfurnished rentals allow you to bring your own style and furniture, and they typically come with a lower rent. But then, of course, you need to factor in the cost of moving your belongings in and possibly buying new furniture. Either way, there's an expense to consider.
5. Maintenance and repairs: who's responsible?
While major maintenance is usually the landlord's responsibility, you may still find yourself dealing with small repair costs. Things like replacing light bulbs, getting a leaky tap fixed, unblocking of drains or even pest control can fall under the tenant's domain, depending on your lease agreement. It's important to clarify upfront who handles what so there aren't any nasty surprises when something goes wrong.
6. Rental agent fees
If you've gone through an agent to find your dream rental, you might end up paying an admin fee. This can be a one-off cost, or, in some cases, it's added to your monthly rent. It's not always significant, but it's one of those things that's worth being aware of before you sign on the dotted line.
Renting can offer flexibility and freedom, but it's not always as straightforward as "just paying the rent." Between deposits, utilities, home contents insurance, and the decision to go furnished or unfurnished, there are a few more costs to think about. Knowing what to expect means you can budget better and avoid any unpleasant surprises down the line.
Our Jawitz Properties team includes knowledgeable and experienced rental property practitioners that are ready to assist you with all of your rental needs. Get in touch today and have all your questions answered. Happy renting!
Author: Jawitz Properties
