0
What you need to know: Renting a Home
Before You Start Your Search
Be sure to factor in all costs before renting a home.
If you’re in the market to rent a house, you may end up having to make a few compromises when it comes to choosing the neighbourhood, features, and price range of your next home.
To help you make the best decision possible, it is a good idea to make a thorough list of all your needs, requirements and preferences before you begin your search.
For most people, one of the most important considerations is cost. While the basic monthly rent is an obvious cost, there are also many other less-visible expenses that are often overlooked, but which can easily add up over time. When figuring out how much home you can afford, don’t forget to consider such questions as:
Are utilities such as heat, electricity, water, cable television and internet connection included? If these costs aren’t included in your rent, find out which utility companies provide services to the building, and contact them to see if they can give you an idea of the average monthly costs. Of course, the exact costs will fluctuate in different seasons and from tenant to tenant, but these estimates should at least give you a good idea of how much you need to budget on a monthly basis — and help you avoid any unwelcome surprises later.
- Are features such as laundry and parking included, or will you need to pay more for the use of these services?
- Will your monthly travel costs increase, decrease or stay about the same at the new location?
- Will you need to purchase or provide your own appliances?
- Is there any form of provincial or territorial rent control in place? If not, what are the landlord’s plans for future rent increases?
How much you can afford to spend on rent depends on a number of factors, including your overall household income, how much debt you or your family are comfortable with, how important your lifestyle is to you and how much you want to put aside for the future. As a general rule, however, your entire monthly housing costs — including rent, electricity, heat, water and municipal services — should total less than 30% of the before-tax income of your household.
This doesn’t include the cost of property insurance, parking, cable, telephone and Internet service, each of which should also be figured into your budget if you plan on using them. If you can’t find a suitable place in the area where you’re looking that meets your price range, you may want to revisit your list of preferences, and decide if there are any other cost-saving measures you can make.
After cost, location can be the most important factor in a rental search. Prime locations that are close to work, school, public transit or other amenities usually cost more, but they may also offer other advantages, such as reduced commuting time and expenses.
Lastly, other important considerations in choosing a rental home are the safety of the building and community, as well as the proximity to family and friends. To help you decide, prepare a list of locations that best match your needs, and then add another list of secondary locations that you could also consider if necessary.
To consult or download a free copy of CMHC’s Your Guide to Renting a Home, visit www.cmhc.ca. For more than 60 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency and a source of objective, reliable housing expertise.
All information originally from www.cmhc.ca. for more information please visit www.cmhc.ca.
