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Q.

What are the hidden cost while renting a house?

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When I shifted to Bangalore for my first job, I planned to get a rental apartment. I thought the rent was all I had to worry about. But reality hit hard when my friend said unexpected expenses add up on the rental property. So, I researched what the hidden cost of renting a house is? I found it includes a range of extra charges from security deposits to maintenance fees.

Hidden Costs of Renting an Apartment

Here are some key costs you should consider:

Upfront Costs

  1. Most landlords ask for a security deposit (typically one to three months' rent) along with the first month’s rent in advance.

  2. If you use an agent, be ready to pay a brokerage fee, which is often equivalent to a month’s rent.

  3. In many places, getting the rental agreement registered is mandatory, and the charges can vary.

Recurring and Additional Expenses

  1. Electricity, water, and gas bills are not included in the rent.

  2. While landlords handle major repairs, minor fixes like plumbing issues or electrical work might fall on the tenant.

  3. Some societies charge extra for a dedicated parking space, which can be an unexpected monthly expense.

  4. If you have a pet, many landlords charge an additional pet deposit or monthly fee.

You must always check what’s included and what’s not before signing your agreement. I hope you found this helpful.

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Which is the best way to find a flat for rent? 

One of the biggest changes into adulthood is leaving your parents' home and moving into your own place. Be sure you have all the information you need regarding the hidden costs associated with apartment renting before you take this next step in your life. While you may not think about these expenses right immediately, they are all important factors to take into account. So let me tell you what is the hidden cost of renting a house.

Know from the experts at NoBroker what charges you have to pay while renting a house. Rent a house at very affordable rates by opting for NoBroker tenant plans.

What is the list of hidden costs while renting a house?

1) Property Interiors

This is the most essential and major expense. It cannot be avoided because you cannot settle in without suitable interiors. This includes electric appliances, plumbing, purchasing new furniture or having it constructed, painting, and an endless list of other things. Even with considerable effort and cost-cutting, this expense might easily reach Rs. 5 lacks. But, the cost of interiors is at least Rs. 8-10 lakhs if you change everything and Rs. 2 to 5 lacks if the fundamental interiors are already completed. You may save some money by shopping for furniture online.

2) Membership in a club

In addition to a one-time high fee for this facility, many developers also demand a monthly fee for club membership. It is regardless of whether the member uses the amenities or not. However, whether you want to use the club or not is irrelevant in this situation.

3) Security deposit

Be careful to consider the security deposit that landlords often require as a fixed rate when you estimate the cost of renting an apartment. This kind of security deposit protects landlords from careless tenants who are late with payments. At the finish of your stay, your security deposit is normally returned if you return the property undamaged. This is one of the what are hidden cost while renting a house.

These are just some of the unexpected costs connected with renting an apartment.

I hope you understood the hidden cost of renting a house.

Read More: Is there any hidden cost other than stamp duty? What are the hidden charges in a home loan? What are the extra charges while buying a house in India?