We are fortunate here in Grand Rapids. We have a lot of great housing available, and most of it is fairly priced. However, real estate rentals have some hidden costs that can really blow up your budget,
These extra dollars can really change your month-to-month rental cost. So what should you watch out for before signing your lease?
1. Utility Costs
This is a big one, because it can run you anywhere from a few bucks to several hundred dollars. Be very careful about what utilities you’re paying for, and how they’re measured!
Houses and apartment complexes in Grand Rapids have a wide variety of utility payment plans. In some places, your electricity, water, heat, and even basic cable are included in your rent. In others, you’re responsible for everything. Know what you’re getting into in advance.
This is especially true in a duplex, triplex, or quad rental. Sometimes, the utilities are divided, and each unit is separately metered. However, multi-plexes just have one bill, and each tenant contributes to the overall cost.
Each of these utilities can take money out of your pocket. As you figure out what you can afford, make sure to factor in utilities. Michigan winters can be brutal, and you don’t want to be shocked by a huge heating bill you weren’t ready for.
2. Late fees
Be very aware of late fees for rent. Of course, in a perfect world, everyone pays on time every month – that is just good business all around! But if you are late, you don’t want to get hammered with an enormous charge.
Also, check your landlord’s policies for grace periods. Don’t assume you have an extra three, five, or ten days to get your rent in. Some contracts are very specific, and you will want to know that before you sign the lease.
3. Laundry
This seems simple, until you’re two weeks into your new real estate rental and are out of clean clothes!
Some units have laundry machines included, free of charge. These rentals often cost a bit more per month, but be careful before you spring for the cheaper option. The alternative could wind up costing you more in the end.
Some places have a coin-operated laundry included, while others don’t offer these facilities. Factor in your time, cash on hand, and the extra trips to the laundromat as you make your decision. All of this adds up, and can be a nasty surprise if you haven’t planned for it.
4. Early Termination Policies
If you have to leave your real estate rental early, you might get hit with huge fees. Some places require you to pay for the length of the contract, no matter the situation. Others allow you to pay an extra month or two to give the landlord time to find a replacement.
Very few people plan to leave their rental early. Usually, it happens because of a job change or other unplanned reason. To put it bluntly, you don’t know what life will bring!
So read the rental’s early termination policy carefully before signing. It could save you huge headaches down the road.
5. Parking
If you have a car, make sure to ask about parking. Some places have plenty of spots available, while others have none. Some charge for carports to keep the snow off, and others have covered parking available for free.
Figure out what works for you, and factor in the costs. It really stinks to have to drive around in the snow for 20 minutes to find a parking spot, then walk another 10 to get home. Don’t assume that parking is included, or even available. Asking questions is very valuable!
Overall, work hard to understand your rental agreement before signing it. This will help you have a much more enjoyable living experience, while keeping your costs reasonable. Good luck!