Hidden Costs of Student Accommodation: Beyond Rent

Upfront Costs

Your initial move-in expenses go beyond the first month’s rent. You should be prepared for a substantial one-time outlay before you even get the keys.

• Most of the landlords may require a deposit to secure the damage costs for one month’s rent. Tenants should get this back when they move out, especially if the accommodation is still in good condition.
• A few landlords may charge non-refundable fees for completing your rental application and conducting a background check.
• If you are bringing a pet into the accommodation, the landlord may ask you to deposit an extra charge or pay a recurring monthly rent.
• In some competitive rental markets, a real estate broker may be included, and students might be responsible for their fee, which can be a significant percentage of the annual rent.

Monthly Bills Beyond Rent

Maybe you are thinking that the monthly rent is just one piece of the monthly housing puzzle. If students live in a dorm, where utilities are already included, they have to manage their budget for the following expenses.

• Some expenses like electricity, gas, and water costs depend on the area you choose for the accommodation, your apartment size, and personal usage.
• It might be possible that you need to pay for the internet usage or streaming devices for your own use. And while streaming services seem cheap individually, they can add up quickly.
• If your accommodation provides you with amenities like a gym or pool, you may have to pay additional fees to access them.
• While your new place of residence may have laundry facilities, you could be charged for each use.

Furniture and Household Essentials

Unlike a furnished dorm room, an accommodation is a blank slate. Outfitting it with everything you need is a substantial cost that many students underestimate.

• Until your apartment is fully furnished, you will need to purchase a bed, desk, chairs, and possibly a couch.
• Stocking your kitchen with pots, pans, plates, utensils, and small appliances like a toaster and microwave can quickly add up to your hidden costs.
• When you move abroad, it's your responsibility to keep the entire space clean. Don’t forget to budget for things like trash bags, sponges, bathroom cleaner, and toilet paper.
• For the bedroom and bathroom, you have to purchase things like towels and a shower curtain.

Travel and Commuting

If you are not living in on-campus student accommodation, you may expect your transportation costs to change.

• Students who maintain a car may need to purchase a campus or apartment parking permit.
• Owning a car comes with ongoing expenses for fuel, insurance, and routine upkeep.
• If you are using buses or subways instead of a private vehicle, you will need to budget for monthly passes or individual fares.
• During holidays and summer breaks, do not forget to budget the cost of going home.

Insurance and Protection

A few landlords may ask the tenant to pay for the insurance cover. Protecting your belongings and your finances from unexpected events is a smart, though often overlooked expense.

• This can protect your personal property and high-value items in the event of a fire, theft, or other damage. Sometimes, the landlord may even require it.
• Health insurance is a general cost of being a student; it’s worth reevaluating your coverage, as some campus health services may not cover everything.
• Overall, insurance charges in student housing provide you with financial peace of mind in unexpected situations.

Maintenance and Repairs

Students who get accommodation outside the campus may be responsible for certain maintenance and repair costs, depending on their lease.

• For some unexpected repairs, your landlord is responsible. But you could be on the hook for minor damage.
• You may charge for the lease-breaking fees if circumstances require you to move out before your lease ends.
• Students’ leases may require them to have the apartment professionally cleaned when they move out to get their security deposit back from the landlord.

Everyday Living Costs

Beyond housing or rent, some costs may be related to your daily life, and for that, you should budget everything on your own.

• The cost of buying and cooking your own food is a significant budget item, but it can be managed if you plan well and do meal prep.
• There are some personal expenses of a student, such as toiletries and haircuts, clothes, and entertainment, and you should plan your finances accordingly.
• Sometimes, for students’ entertainment, joining campus clubs, sports teams, or fraternities and sororities comes with its own set of fees.

Conclusion

As you step into the freedom of independent student living, comprehensive budget planning is your most crucial task. By looking beyond the sticker price of rent and accounting for all the hidden costs, you can navigate your financial responsibilities with confidence. For that, thoroughly research all options, read your lease carefully, understand what is included and what is not, and plan to ensure your student accommodation journey is free of unwelcome surprises.