Rent and Credit > Essential Bills to Budget for When Renting

Essential Bills to Budget for When Renting

Wollit Team2 minute read · Updated 18th August 2025

Moving into a rental property is exciting, but understanding what bills you pay when renting is crucial for budgeting. Beyond your monthly rent, several additional expenses can significantly impact your budget. This guide will help you identify all the essential costs associated with renting a property in the UK.

Core Utility Bills for Renters

Utilities are usually your biggest expense after rent. Here's what to expect:

Electricity and gas: £50-150 per month
Water: £25-40 monthly (sometimes included in rent)
Internet: £20-40 monthly
TV licence: £169.50 annually (if you watch live TV)

Council tax is another significant cost that varies by location and property type. Most renters pay £80-300 monthly for this, though students and some benefit recipients may qualify for exemptions.

Monthly Expenses for Renters

Beyond utilities, you'll need contents insurance to protect your belongings (£10-25 monthly), as your landlord's insurance only covers the building structure. Mobile phone contracts add £15-50 to your budget, whilst streaming services like Netflix and Spotify can quickly add up to £30-40 monthly.

Factor in groceries and household items, which average £200-300 monthly for one person. This includes cleaning supplies, toiletries, and basic household necessities that are easy to underestimate when budgeting.

Transport costs vary significantly by location. City dwellers might spend £100-150 monthly on public transport, whilst rural renters face car insurance, petrol, and maintenance expenses that can easily exceed £200 monthly. Paying your bills on time helps build your credit report, which is important for future rental applications.

Upfront Costs When Renting

Before moving in, you'll need money for several upfront costs:

Security deposit: Usually 5 weeks' rent
First month's rent: Paid in advance

Some suppliers also require deposits from new customers, particularly if you have limited credit history. Moving costs range from £200-800 depending on distance and whether you hire professionals or rent a van yourself.

You'll also need money for furniture, appliances, and basic household items like kitchenware and bedding. These initial setup costs can be substantial, so factor them into your moving budget. Setting up rent payments properly helps build good credit history for future applications.

Understanding Your Tenancy Agreement

Your tenancy agreement shows exactly which bills you pay versus what your landlord covers. The typical split is:

You pay: utilities, council tax, contents insurance, and internet Landlord pays: buildings insurance and property maintenance

Some properties offer "bills included" arrangements where utilities are bundled into rent. This makes budgeting easier but usually means higher monthly rent to cover the landlord's costs.

Conclusion

Renting involves more costs than just monthly rent. From utilities and council tax to upfront deposits and moving expenses, successful budgeting requires understanding all associated costs. By planning ahead and implementing money-saving strategies, you can enjoy your rental property without financial stress.

Remember that paying bills on time builds positive credit history for future opportunities. Create a realistic budget covering all these expenses, and you'll settle into your new home with confidence.