THE FIRST APARTMENT OF YOUR OWN

 THE FIRST APARTMENT OF YOUR OWN

"Freedom and independence - my first own apartment. This goes hand in hand with regular fixed costs. These include, for example, rent, electricity and gas bills, and insurance. This guide explains what costs arise from the first apartment of your own and how the financing works without any problems.

The first home of your own: an overview of costs

Self-employment also means ensuring financial security. To achieve this, it is good to get an overview of the income and expenses.

A cost plan makes it clear whether the future rent fits into the budget. What income do I have from a mini or midi job? Do I have paid training? Do parents, family, or friends of the family support me financially? And what are the costs of owning your first apartment? By offsetting your income, you can realistically assess your financial freedom. Stellar Homes is the best property finder in Dubai.

How is the rent made up? Net rent excluding heating and rent

The largest item of monthly expenses is rent. In the lease, the rent includes the cold rent and a lump sum for the operating costs. Sometimes a net rent per square meter is given for the apartment. Then multiply that value by the square meters of the apartment. The rental price varies greatly depending on the city and state.

The warm rent includes the rent, including the lump sum for the landlord's ancillary costs and passed on to the tenants. These are, for example, costs for the chimney sweep or pavement cleaning in winter. The warm rent is the amount that is transferred monthly to the landlord. Since the lump sum for these ancillary costs is paid in advance, an additional cost settlement follows once a year. When you have used more, you pay the difference to the landlord.

The additional costs are divided into warm and cold costs. The warm operating costs include water and heating costs. Tenants can influence this by using water and heating sparingly. The average water costs are currently per month for one person.

The tenants do not influence the cold operating costs. These are, for example:

Sewage charges

Street cleaning and garbage collection

Possibly house cleaning and garden maintenance

Lighting

Cleaning the chimney

Rent is the highest monthly cost, followed by living expenses.

Energy costs: Supplying your new home with electricity and gas

If you move into your first apartment, you need electricity and sometimes gas. Gas as a heating source is becoming less and less important. However, some apartments are equipped with gas/floor heating or a gas stove. In this case, you need an electricity supplier and a gas supplier.

The following table shows how much single and multi-person households pay for electricity:

The first apartment of your own: keep an eye on costs BEFORE you move in. Pay the deposit. When renting an apartment, a rental deposit of three months' rent of the net cold rent is normally required. The law allows the tenant to pay these in three monthly installments. The deposit is there to settle any claims against the tenant after moving out, such as missing rent payments or damage to the apartment.

If the deposit is not paid on time, the apartment owner has the right to terminate the contract without notice.

The landlord has to keep the deposit separately from his property, and the tenant receives the interest. The rental deposit can also be placed in a rental deposit savings book. The tenant opens a savings account in his name, which is pledged to the landlord.

As an alternative to the rental deposit, deposit guarantees are also possible. Relatives or banks can provide a rent guarantee. Instead of money, a guarantee document is deposited here. In this way, the landlord can be sure that he will receive the deposit should it be necessary. There is no repayment of the deposit from a previous tenancy for the first apartment. If you can set up a deposit guarantee, you will have the money to deposit the new home.

The deposit must be paid back no later than three months after moving out. The landlord may withhold a reasonable amount to settle the outstanding ancillary costs. 

Cost of renovating the new apartment

The chosen apartment is not always renovated. So there may be costs for paint and painting tools. According to current jurisprudence, apartments do not have to be renovated when moving in when moving out. However, the condition must be noted in the handover protocol. You need proof of the time you moved out.

Moving costs

Whether you are moving to the same city or starting your apprenticeship or studying in a different city, the cost of moving will vary. Do friends help out and maybe have a bus or station wagon? If not, there are costs for a rental vehicle and gasoline. The more friends help, the less paid moving helpers are needed.

Compensation Payments - Transfer Agreements

To get an apartment, the previous tenants often demand compensation payments. If the apartment fits into the budget, it pays to make these compensation payments in the long term. The required payments must be within a realistic framework. Besides, according to the tenants' association mieterbund.de, compensation payments are legally invalid. Transfer agreements may be made. Here the tenant undertakes to buy furniture or fixtures from the previous tenant. The transfer fee for pieces of furniture must not be 50% above the current value. If the limit is exceeded, the difference can be claimed back.