Renting near Toronto? How to effectively budget and other costs to consider

Toronto is a robust city filled with diversity and plenty of job opportunities.  As a renter, it can be exciting to secure your very first place and start your life in the city.

Whether you’re moving out on your own or you are a seasoned renter but want to maximize your monthly living expenses, budgeting is an effective way to manage your spending and ensure that you keep within your financial limits. Sometimes new renters forget to account for certain living costs when creating their budgets. 

While some costs associated with renting are obvious, others are not. In addition to a monthly payment, renters must also take into consideration factors like utilities, cable and internet, and other related costs. Getting a handle on all of the possible renting costs is important, and it can help lower risks that may come up outside of your living situation.

Here are some other costs that you’ll want to be sure to factor into your budget.

1. Toggle

   Moving Costs:

Prior to signing the lease, you’ll need to consider the price tag for renting a moving truck.  Additionally, you’ll want to budget money for a security deposit, application fee, parking fee and/or pet deposit fee.  In fact, most rentals around Toronto like 859 Kennedy Road and others require a security deposit.

1. Renter’s Insurance:

Many property management companies and landlords require renters to get insurance that will cover unforeseen circumstances, such as a natural disaster, floods, fire or theft. Renters insurance will reimburse you for items lost should such an event occur.  Even if you aren’t required to purchase it, it’s something to consider.

1. Utilities:

Aside from the monthly rent payment, one of the biggest costs you’ll encounter as a renter is the cost of utilities. If heat, electric and sewage are not included in your rent payment, then you’ll be required to pay those out of pocket on a monthly basis. Make sure to look at your lease before signing to see exactly what you’ll be responsible for. Additionally, if you plan to have cable and internet, you’ll need to budget for those added costs, as well.

1. Laundry:

Unless you have a washer and dryer in your apartment or condo, you’ll want to leave room in your budget for laundry.  A lot of buildings will have their own laundry rooms, so you may have to put money on a monthly laundry card or have spare change to use the machines.  The amount that renters spend on laundry depends on how often they need to use the machines.  For instance, if you are a family of 4, you’ll need to budget more money for laundry costs. 

1. Furniture and Home Goods:

Typically, most apartments don’t come furnished, so again, you’ll need to set money aside for things like a mattress, sofa and dining table and chairs.  Don’t forget to budget for everyday items like cleaning supplies, toiletries, and food. These items can definitely add up. 

Rent in and around Toronto can be expensive, so if you’re not ready to take on all of these monthly expenses alone, consider finding a roommate. It can be a smart financial decision to add another paying party into the equation.