What are the most common hidden costs when renting?

When you have your eye on a new rental property, the bare rent is often the first thing you look at. It seems clear: you know what is deducted from your account each month and whether it fits your budget. But the reality of renting is often more complex. In addition to that base price, there are many additional costs that can significantly increase your monthly payments if you don't calculate them in advance.

Some of these costs are clearly stated in the contract, while others only become visible when you receive the first bills or when you leave the home. By being aware of these hidden costs, you will avoid running out of money for your nice perks at the end of the month. Let's take a look at the most important “sneak costs”.

The fine print of the service charges

Almost every tenant faces service costs. This is the amount you pay for things that the landlord takes care of but benefits you. In a fair contract, these costs are transparent, but in practice they can vary considerably.

What's actually in it?

Service costs often cover the cleaning of the shared hall, the lighting in the stairwell, the maintenance of the elevator and sometimes an advance payment for gas, water and light. The pitfall lies in the breakdown. Sometimes a landlord charges a high amount for “administrative costs” or “caretaker costs” that are not always commensurate with the services provided.

The financial statements

Remember that service charges are usually an advance. At the end of the year, the landlord must make an overview of the costs actually incurred. Have you used more or have the costs for the shared areas increased? Then you have to pay extra. This can be a nasty surprise worth hundreds of euros if you are not prepared for this.

The influence of the energy label on your wallet

We often talk about the rental price, but in fact, you should look at the “housing costs”. Bottom line, a home with a rent of €1,000 and energy label A is often cheaper than a €850 home with energy label G.

In a poorly insulated house, you pay your bills in heating costs to keep it comfortable in the winter. These are hidden costs because they are not included in your lease but are removed from your bank account every month. So when viewing, pay attention not only to the beautiful kitchen, but also to the thickness of the glass and the condition of the frames. A drafty house is an expensive home.

Municipal user taxes

Many starters in the rental market forget that they also have to pay taxes to the municipality and the water board. These accounts often come only once or twice a year, making them easy to overlook when making a monthly budget.

• Waste tax: You pay to collect and process your garbage. How much this is varies enormously by municipality.
• Water Board Tax: This is a contribution to the purification of water and the maintenance of the dikes. As a tenant, you are also (partly) liable to tax for this.
• Sewer charge: Sometimes, as a user, you contribute to the maintenance of the sewer network.

When added together, these taxes can amount to just €400 to €600 per year. It is wise to set aside a small amount of money for this each month.

Insurance and maintenance

When you rent, the landlord is responsible for home insurance (the building itself), but you are responsible for everything in it.

Household insurance

You want to protect your belongings against fire, theft or water damage. Home insurance is not mandatory, but highly recommended. Although the monthly premium is often not too bad, it is still another item on your list.

Minor repairs

Although the landlord pays for major maintenance, you are responsible for the small things by law. Think of replacing a broken faucet, venting the heating or lubricating the hinges. If you're not handy and have to call a handyman for every little thing, these costs can add up quickly.

Costs at the start and end of the rental

The move itself is a well-known cost, but there are also contractual issues that cost money.

Contract costs and name plates

Some brokers still wrongly charge “contract costs” or high administrative costs for drawing up the contract. Although many of these costs are prohibited by law if the agent works for the landlord, they are sometimes tried. Even a simple thing like a name tag on the bell can sometimes cost you €25 via the landlord.

The deposit as missed capital

You often pay one or two months' rent as a deposit. You will 'lose' this money for the entire duration of your rental period. You will not receive interest on it, even though you could have used the money for other things or investments. Think of it as an interest-free loan to your landlord.

Parking and mobility

Do you live in a popular neighborhood or in the city? Then there is a good chance that you can't just park in front of the door. A parking permit can cost hundreds of euros a year in some cities, and sometimes there are waiting lists of years, so you have to rely on an expensive commercial garage. Always ask before you sign, because a parking space of €150 per month changes your financial picture considerably.

Renting is therefore more than just the amount you agree with the landlord. By taking into account service costs, taxes, energy and insurance, you get a much fairer picture of what living really costs you. It prevents you from having to conclude after three months that you can't actually afford your dream home.