Whether you’re on your own or have been renting for a while, it’s important that you know the related terminology as well as possible. Knowledge is power, and while most landlords are on the rise, some will take advantage of naïve new tenants.
Fortunately, the term you’re most interested in is also one of the easiest to understand. “Rent” is definitely a topic that comes up when talking about any rental, whether it’s a small unit or a rental home, as it’s probably one of the expenses most important per month.
What is the definition of rent?
Quite simply, lease is the amount of money paid to use a property that someone else owns. It is important that this amount is always specified in a legally binding lease. That way, your landlord can’t increase it without warning or approval.
How often is the rent paid?
Rent is usually collected via periodic payments on a monthly schedule, but it really depends on the terms of the lease. Some landlords offer discounts to tenants who pay for several months at a time, such as six months or even a year. Others might prefer regular payments on a quarterly basis. It doesn’t matter when or how often payments are made, as long as everyone is on the same page regarding the specified intervals.
Of course, most tenants also pay money for first and last month’s rent just to get occupancy in the first place, so factor that into the move-in expenses. In the event of financial difficulties, such as a layoff, it is important to contact the owner. Often they offer the tenant a minimum price to pay until things work out.
How is the rent paid?
Rent payment varies from landlord to landlord. Some have sophisticated online automatic payment options, and others stop on the first of the month for a check or similar payment method. If the landlord sends an invoice in the mail, be sure to return it for payment quickly and promptly to avoid hits to your credit score.
What is an example of a rent payment?
The most common example of rent is the amount of money a tenant pays to live on someone else’s personal property. Sometimes the landlord is a large corporation (as is the case with most rental communities), but individuals own and rent condos, houses, townhouses, trailers, a basement, or a upstairs apartments (which are part of a larger house) and even individual rented rooms.
Of course, it is also possible to rent other real estate, such as cars. Rents in some areas, such as those with a lot of college students, for example, are likely cheaper than in larger metropolitan areas.
What rent do I have to pay?
For the record, experts say that no more than 30% of a person’s pre-tax income should go towards monthly rent. Not sure what you can afford? Use this handy rent calculator to figure it out.
Your landlord sets the amount of rent paid for a particular unit and it depends on many factors. For example, rent is always greater than the amount the landlord pays per month for land and property, plus related expenses. This allows the owner to make a profit, which brings us to our next point.
What is economic rent?
Economic rent is any additional income or wages earned by a particular resource, such as land. Thus, when a landowner rents a house and makes a profit, he benefits from economic rental. However, cultivated land, such as that which grows crops, or land used as pasture for livestock, also generates income.
An important part of the concept of economic rent is that the supply in question does not increase – there is only a limited amount of land to cover. Thus, no matter how great the demand for land in a region, the supply does not change.
What are the rents for the chalets?
Vacation rentals are big business right now. These are also known as cottage rentals, which the owners rent out to a group for less than 28 days at a time. So an organized group might stay for a few weeks, then they leave and another arrives and so on. Payment for the temporary use of other people’s property such as this is usually collected in advance.
What is included in the rent of your apartment?
The main thing rent pays for is the privilege of temporary occupancy of a property. The price, paid at fixed intervals, allows the tenant to own and use the accommodation for a fixed period. Non-payment of rent or other violations of breach of lease may, however, result in early termination of the contract.
Common charges included in the rent
Often your rent includes other expenses. For example, it is not unusual for large communities to include utilities, such as water and electricity, at a flat rate. Garbage collection and sewer costs are also usually included in the rent.
Rent also often includes a markup that the property manager uses to pay for cultivation or land improvement efforts, such as weekly or monthly lawn and garden service. House rents are more likely to include this hidden cost, although other cohousing communities also have landscaping needs.
Repairs and upgrades to parking, buildings and equipment are also considered. So don’t be afraid to use this pool. You pay for the equipment and related service provided, albeit in a roundabout way.
Sometimes cable and internet are included in the monthly rental fee, but check with your particular landlord.
While it may seem like padding to include so much in the rent price, it’s actually much more efficient. That way, the tenant doesn’t have to deal with as many bills and the landlord likely gets a lower rate from utility providers for mass usage. Sounds like a win/win situation, that’s for sure!
Charges not included in the rent
Other expenses not included in rent include tenant insurance, natural gas, phone lines, streaming services, etc. So be prepared to shell out some extra income for Netflix, because your landlord probably won’t cover it.
However, the good news is that these are items that people often share with roommates, reducing the financial impact. For example, one party pays the Hulu bill, another handles the Netflix charges. And everything goes in the wash.
Cleaning services and repairs for any crazy damage are also not included in the rent. It’s one thing if the roof is leaking and your house is flooded. But the owner will not cover the cost of the destruction of his property by irresponsible actions.
Although some communities have additional storage options, they usually come at a price. So if you just can’t fit all your stuff in the cupboards you already have, find out about that extra expense.
Better Understanding, Better Fit
It is a leap of faith for a landlord to let someone temporarily take possession of a rental home or other property. Show them you’re up to the task by fully understanding the definition of rent and other related terms. Soon it will feel like second nature and you’ll be an old pro.