Colourview Ontario Real Estate

Posts Tagged ‘Renting Property’

There is no simple answer to the question of what is included in the rent. This is because the answer will likely vary from one apartment complex to the next. Some apartment complexes may include a variety of items within their rent while others may charge renters additional fees as needed and still others may require the renters to register directly with individual public utilities and handle these expenses on their own.

Likewise some apartment complexes may include additional features with the price of the rent while others may charge additional fees for these features. A pool, exercise room, meeting room or theater are just a few examples which may be offered by an apartment complex. In most cases the use of these amenities are included in the price of the rent but there are exceptions where the renter is charged an additional fee for the privilege of using these amenities.

Consider the Price of Utilities

When considering the price or a rental property, the renter should first determine whether or not utilities are included in the cost of the rent. This is significant because depending on the size of the property and the climate of the area, heating and cooling costs can be rather expensive. In most cases, the renter is responsible for the cost of their own utilities and their apartment is individually monitored for usage and the renter is billed monthly by the utility company. However, in the case of an individual renting an apartment in a private home as opposed to an apartment complex, the homeowner may collect money for utility uses in another way. Depending on the agreement between the homeowner and the renter the monthly rent may be set at a rate which includes a contribution to the utility costs or the renter may be assessed a pre-determined percentage of each utility bill on a monthly basis.

It is important to consider the price of utilities when they are not included in the rent because failure to do so can lead to unpleasant surprises in the future. For example a renter in a particularly cold climate may rent a spacious apartment for a great rate only to find out later that the cost of heating the apartment makes it difficult for the renter to afford to live in the apartment.

Consider Amenities which are “Free”

When renters are selecting an apartment, they should consider the amenities which are “free” as opposed to the amenities for which the renter is charged an additional fee. The word free is used in quotations in the heading of this section to indicate these amenities do not always come without a price. A renter may not pay a usage fee for some amenities but it is very likely the privilege of using these amenities is factored into the monthly rent.

As an example consider two 800 square foot apartments in the same geographical area. Each apartment may have a similar layout and comparable square footage but the monthly rents associated with these two apartments might be quite different. In examining the amenities you might notice the higher prices apartment has access to a pool, an exercise room and a theater all for the use of residents while the lower priced apartment offers no such amenities. In this case the residents of the more expensive apartments are actually paying a higher monthly rent as a result of the amenities offered.

In a case such as the example above, renters should weight their options carefully. If they can afford to pay the more expensive rent, they should carefully consider whether or not they wish to pay a higher fee for use of the amenities. A renter who doesn’t like to swim, belongs to a gym and does not have a great deal of free time to watch movies may decide they would be better off selecting the lower priced apartment without amenities.

Renters will often be faced with the decision of whether to opt for a furnished apartment or an unfurnished apartment. The majority of apartments available for rent are likely to be unfurnished apartments but there are some apartments which are available with furnishings. There are some situations in which it makes sense to choose a furnished apartment. Likewise there are situations in which a furnished apartment is not a good idea. This article will discuss these situations in an effort to assist the reader in determining whether or not it is better to rent a furnished apartment or an unfurnished apartment.

What Does Furnished Mean?

A furnished apartment may mean different things to different people. Some renters may expect a furnished apartment to have each and every room completely furnished with every possible piece of furniture. Typical furnishings may include a bed, a dresser, nightstands, alarm clock with built in radio, a television, stereo equipment, DVD player, an entertainment center, couch, coffee table, end tables, kitchen table and kitchen chairs. It may also include dining room furniture such as a dining room table, chairs and a curial cabinet. Others may assume a furnished apartment includes only the necessary furnishings such as a bed, couch, kitchen table and chairs. This essentially eliminates all electrical equipment as well as furniture deemed to be decorative in nature such as a coffee table, end tables or nightstands.

When is a Furnished Apartment a Good Idea?

A furnished apartment is a good idea for recent college graduates who lived on campus in a dorm room prior to graduation. These students likely have very little furniture of their own. In this case, renting a furnished apartment may be more economical than purchasing enough furniture to live comfortably in the apartment.

The overall cost of a furnished apartment may be higher in the long run because the renter may pay more but those who are unable to pay a great deal of money upfront to furnish an apartment might not mind paying this additional amount. For these renters, they are not likely to notice the impact of a slightly higher monthly rent payment but they would definitely feel the impact of significant purchases such as a bed, couch or dining room set.

When is an Unfurnished Apartment a Good Idea?

There are certain situations in which an unfurnished apartment is a good idea. This includes a situation where the renter has already accumulated enough furniture to furnish the entire apartment. In this case, selecting a furnished apartment would not make sense because the renter would have to find a location to store either his own furniture or the furniture supplied by the apartment complex. The cost of storage can add up very quickly. Additionally, the renter probably pays a higher rent to stay in a furnished apartment.

An unfurnished apartment is also a good idea when the renter currently does not have any furniture but is looking forward to purchasing furniture and has already saved up enough money to make these purchases. In this situation the renter will likely select an unfurnished apartment and plan on shopping for furniture almost immediately after taking possession of the rental property.

Storing Extra Furniture

Renters who opt for a fully furnished apartment when they already have a sufficient amount of furniture have to determine what they will do with their furniture while they are staying in the rental apartment. The options are basically as follows:

* Sell or give away all currently owned furniture
* Store your own furniture
* Store the furniture which comes with the apartment

While each of the above options is certainly valid, the renter should seriously consider whether or not they want to pay additional storage fees just to rent a furnished apartment. Renters who plan to sell or donate their current furniture do not face this dilemma but those who plan to store one set of furniture should carefully consider the price of storage. They should also consult with the leasing agent to determine if there are any contract items which prohibit placing furniture owned by the apartment complex in an offsite storage facility. There may be provisions which allow for these items to be stored but require them to be stored onsite.

Deciding how much apartment they can afford is one of the most important decisions a renter will have to make. This decision will help to determine a number of factors include the size and location of the potential apartment as well as the types of amenities offered. Those who are interested in renting an apartment will have to consider all of their current expenses in comparison to their monthly cash flow. They will also have to determine whether or not there are changes they can make to their current budget to make a larger or more well situated apartment affordable.

Consider All of Your Expenses

When deciding how much apartment they can afford, renters should carefully consider all of their monthly expenses in relation to their monthly income. Expenses may include, but are not limited to, utilities such as gas, water and electric, telephone, cell phone, Internet services, cable television, car insurance, renter’s insurance, gas for car, cost of commuting to work, groceries and other incidental charges. Subtracting these costs from the monthly income will give the renter a good idea of how much money they can afford to spend on rent each month. Renters might also consider subtracting an additional amount out of their monthly income to give them the opportunity to save some money each month.

Expenses to be considered should also include expenses for entertainment purposes such as dining in restaurants, going to movie theaters or cultural events. Even movie rentals should be considered in this category. Considering these expenses is necessary because otherwise the renter may not allot a portion of their budget for such purposes and may find themselves unable to participate in some previously enjoyed leisure activities.

Is There Room for Improvement?

When examining the monthly budget, renter should take the opportunity to determine whether or not there is room for improvement in their current financial situation. For example a renter may find they are able to minimize their monthly bills by obtaining their car insurance and renter’s insurance from the same insurance carrier. The carrier may be willing to offer a discount to a customer who utilizes their services for more than one type of insurance. Likewise there may be the opportunity to minimize expenses by bundling services such as telephone, Internet and possibly even cable television.

Also, consider entertainment expenses as an opportunity for financial improvement. If a renter currently eats out in restaurants for dinner on both Friday and Saturday of every week, they could consider limiting these dining experiences to only one night a week or even only one night every other week. This can result in a significant cost savings which may enable the renter to afford a more expensive apartment.

Other areas where renters can sometimes cut expenses are on cell phone bills and cable television bills. Examine your cell phone bill carefully. If you are not using all of your minutes each month, it might be worthwhile to switch to a plan with fewer minutes. This would lower your monthly bill without causing you to make any sacrifices. One area where sacrificing might contribute to more monthly cash flow is with cable television. Renters who pay higher fees for premium channels can consider eliminating these channels. All of these small changes to monthly spending can contribute to the renter being able to afford a more expensive apartment which may be larger or in a better location than the apartment they would be able to afford without making changes.

Is There a Need for Improvement?

Although trimming superfluous expenses is always a good financial strategy, renters should determine if this is necessary in terms of their rental situation before making drastic changes. Once a renter has established the amount of money they can afford to spend in rent, they can start to look for available apartments in that price range. If the renter is happy with the choices available to them at this time, there may not be a need to make financial adjustments at this time. However, if the renter is not happy with the options available, financial changes and stricter budgeting are warranted.