5 Things to know about renting in Western Canada
Things to know about renting in Western Canada! Whether you are renting for the first time or not! Here are 5 major things to keep in mind when planning to rent. The rental process can be equally as stressful as purchasing a home. Finding a rental without a realtor means you need to do your own research and understand these additional costs. If financially possible, saving an extra 25-35% of your monthly wage towards these excess fees is never a bad idea.
Your monthly income-
Keep in mind that spending too much on rent may make it difficult to save for future plans or cover additional monthly expenses. We recommend that your household expenses aren’t higher then 35% of your monthly net income. Some of these additional costs vary province to province, you can click here to see British Columbia’s applicable rental fees, here for Alberta and here for Saskatchewan.
Though it seems like common knowledge to have insurance when you own a house, for renters it happens to be the opposite. In a survey done by Insurance Information Institute from 2016, 95% of homeowners had homeowner’s insurance yet only 41% of renters had renter’s insurance. Which is less than half. Since 2016 the number has gone up, but not substantially. Insurance can protect you and your bank account from a variety of potential damages including break-ins, burst pipes, fires, hailstorms, water backups, and more. Plus it’s not overly expensive! The average for renter’s insurance in BC is $12 which adds up to be $144 a year, the average prices also vary province to province.
Moving and additional costs-
Costs such as gas, electricity, heat, AC, Wi-Fi may or may not be included with your monthly rent. If not, in BC & SK electricity and gas are two different payments. In Alberta they vary depending on the company you go through. These costs can add up as a variety of fees so budgeting around whether they are included are not can be a deal breaker for many.
Some other additional costs could include-
- Moving expenses (truck rentals, moving companies)
- Time off work
- Move in fee/ elevator fee
- Parking (if not included)
- Pet fees
Furnishings can add up quickly, especially if your new rental doesn’t come furnished, as most don’t. Cleaning supplies are generally an ongoing cost as they aren’t going to last forever and appliances can be pricey depending on brand and type of appliances you require.
- Cleaning supplies
- Vacuum, brooms
You will also have to pay a deposit, which varies provincially. In BC, the deposit is half a month and in SK, and AB it must be less or equal to one month’s rent including a pet deposit if applicable . For example, if your monthly rent is $1350, and your security deposit is $675, your pet damage fee would also be $675. This can also vary on the building and landlord.
Here at Prokey our job is to make sure your process is as smooth as possible! For any other inquiries about rentals feel free to contact us here!