Managing your finances as a tenant is key to maintaining a stress-free renting experience. From covering rent to handling unexpected costs, a well thought out budget will ensure you stay on track. Here are some essential budgeting tips every tenant should know.

Know Your Monthly Outgoings

Before signing a tenancy agreement, always work out exactly what your monthly outgoings will be. In addition to factoring in your rent, also consider your utility bills, council tax, internet and TV subscriptions and any contents insurance. Having a clear picture of your fixed expenses will help you to set a realistic budget.

Have an Emergency Fund

Unexpected expenses such as broken appliances can arise, even in a rental property. Whilst landlords usually cover the cost of major repairs such as a broken boiler or leaks, appliance issues like a broken washing machine or kettle could be your responsibility depending if the property is furnished or not. Aim to keep a small emergency fund put by each month to cover any unforeseen costs.

Track Your Spending

With so many small daily expenses that can add up quickly including coffee runs and impulse buys, it’s easy to lose track of where your money goes. Use a budgeting app or spreadsheet to monitor your income and outgoings. Regularly check your outgoings to track your spending and spot areas you might be able to cut back.

Be Smart with Utility Bills

Saving on energy bills can make a huge difference over a year. Simple steps like switching off the lights when you leave the room, investing in energy efficient bulbs or turning down the thermostat can all help to cut costs. Compare energy providers each year to ensure you are getting the best deal.

Avoid Late Payment Fees

Missing a monthly rent payment can cause stress and unnecessary late fees. Setting up a direct debit will ensure your rent is paid on time each month. If you do experience financial difficulty, always communicate with your landlord or letting agent early, as most will be understanding and help you to discuss your options.

Plan for Moving Costs

If you are planning to move into a rental property soon, factor in the costs such as removal van or hire, a deposit for your new property or packing materials. Being financially prepared will reduce stress and the moving process will be smoother.

Budgeting doesn’t have to be complicated or scary, it’s all about planning ahead to make smart financial decisions to secure your future. If you are looking to rent a property in Nottinghamshire our friendly and experienced team are on hand to help here.