Renting your first home? You need to save for these costs and have essential documents ready
Category Property Advice
Renting a first apartment is an exciting experience for many and often represents the first steps to independent living. Many new tenants enjoy searching for their perfect place to call home and usually take time to view several properties until they find their ideal fit. Many say the best part about the process is walking through a home and envisioning everyday life in it. This is the fun part and although it is an experience unlike any other, it does involve its fair share of admin. Many new tenants may not be aware of the mandatory costs and documentation needed before you sign the lease agreement. These costs need to be budgeted for and documents need to be printed and ready for submission to your real estate agent.
Save up for the following costs:
The Security Deposit
The biggest cost to budget for is a security deposit as this typically costs between one and two months worth of rent, but the exact amount is at the discretion of the landlord. This means if your rent is R6000 per month, your deposit can start from R6000 or go up to R12 000. The deposit is held as surety for the owner and will only be paid back to the tenant at the end of the lease term provided there is no damage caused to the property or there are no outstanding rental costs.
The Municipal Deposit
Although not compulsory, municipal deposits are becoming increasingly required by landlords - and tenants need to be aware of these costs. This deposit amounts to a few hundred rands and is used to pay for a tenant's lights and water bill for the last month of their lease. Without this deposit, a tenant will have to wait for the municipal service bill to arrive in order to make the payment. This can take very long and while waiting for the bill, the entire security deposit will be held back until the municipality is paid. In this way, the municipal deposit allows tenants to get their security deposit on time and their municipal bill is also taken care of.
Admin Costs: Credit checks, Application Form and Lease Agreement
When you find a rental home you love, there is some admin that will follow. You will need to fill in an application form which will be given to you by your real estate agent. You will also need to agree to a credit check by the agent and if this is favourable, then you will be eligible to sign the lease agreement. This whole process can cost around R900.
Remember, looking for your first place to rent means you will need a good amount of money saved up to pay for a security and municipal deposit, and admin costs. So make sure you budget for this. And since the security deposit is the biggest amount required, ensure you get clarity on this exact figure before you choose a place to rent.
There are a number of documents needed when you apply to rent a home. A real estate agent will require a completed application form and FICA documents which they will send to you, your Identity Document (ID) and your partner's ID (if applicable), your proof of residence such as a utility bill, tax certificate, and an affidavit that confirms your address. Next, you will need to get essential documents from the bank which include a three months salary slip and three months bank statement. Lastly, if you're married in the community of property, you will then need to provide a copy of the marriage certificate.
To find out more about the rental process or if you're on the lookout for a home to rent in Gauteng, contact CSi Property Group today! We are ready to help.
Author: CSi Property Group