First-Time Renters Should Be Aware of Hidden Costs
Bills, Bills and More Bills
Rent isn’t the only payment that is due every month. Phone bills, Internet bills, cable bills, hydro bills, gas bills … these can all add up quickly, especially if you’re moving into a bachelor apartment and have to cover the costs by yourself.
Some apartments are considered “all-inclusive” – that is, these extra payments are included in your rent. This way, you know up front exactly how much your apartment will cost each month. However, some apartments might only cover basic utilities, causing you to set up (and foot the bill for) Internet, phone and cable accounts on your own. Some landlords might also charge you with other seasonal expenses, such an air conditioning fee in the summer to make up for the increased electricity rates, which could add upwards of $100 a year to your total payments. Do your research and read the lease carefully. At the end of the month, that $800/month all-inclusive apartment is a huge difference compared to an $800/month utilities extra apartment.
Storage
Sometimes a closet just isn’t enough space to hold all of your things. Luckily, some apartments have extra storage space that you can use – whether this space is free to use or is available on a monthly rental differs from apartment to apartment. If there is no extra space in your apartment building and you really need the room, you can always look into renting an off-site storage unit, which will probably run you between $30 and $100 each month. If that’s too pricey, you might want to consider leaving your old baseball card collection and full assortment of goalie equipment at your parents’ place.
Parking
If you have a car, it’s only natural that you’re going to need a place to park it. Is parking included with your rent? If not, you may have to buy a separate parking permit – either for a space in your apartment’s lot or on the side of the street – that can cost anywhere from $25 to $150 each month (depending on the time of year). Factor in always-rising gas prices and your wheels might put a significant dent in how much apartment you can actually afford.
Transportation
If you don’t have a car, chances are you’ll be riding the bus around town. If this is the case, make sure you have enough money budgeted each month for passes or tickets. Depending on where you live, a monthly pass can cost anywhere between $60 to $100.
Laundry
Apartment living means taking your clothes to a communal laundry room, where you’ll have to be ready to pay several dollars per load to wash and dry your laundry (in addition to the money it costs to buy detergent, bleach, fabric softener, etc.). Budget accordingly.
Groceries
You might be able to avoid paying bus fare by riding your bike everywhere you go, and you might be able to avoid the laundry room in your apartment by having super-nice parents, but one thing that is inevitable is food. Every couple weeks, you’ll have to buy groceries. When calculating your monthly food budget, as a general rule, give yourself more room than you think you’ll need – even a few trips to coffee shops and fast-food restaurants can jack up your monthly expenditures and wreak havoc on your budget.
Now that you’ve sniffed out and added up all of the costs associated with your new place, take a look back at the price of that dream apartment. Is that the “real” price, or is the amount you’ll have to pay each month actually much, much higher? Before you sign on the dotted line, do your research and make sure you really can afford to live there. In the end, your wallet (and your parents, as they won’t have to take you back into their home because you’re broke) will thank you for it.
Looking for an apartment in Ottawa? Paramount Properties is Ottawa’s second largest residential property management company. With more than 4,500 Ottawa apartments for rent in some of the city’s finest locations, we’re your #1 choice for apartment rentals in Ottawa.