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2. > For Consumers
3. > Choose a Life Event
4. > Moving Out on Your Own
5. > Costs of Moving Out

Costs of Moving Out

Before you prepare your moving budget, consider all the costs of moving out on your own, not just your rent or mortgage. Expenses generally fall into three categories:

• Deposits
• Start-up expenses
• Ongoing expenses
  - including fixed payments such as your monthly rent or regular mortgage payments

This section focuses on rental expenses, but many of the expenses listed here apply to buying as well. To manage costs within your budget, you may want to think about living with a roommate.

Deposits

Rent

When you start renting, you are usually required to provide the first and last month’s rent (essentially, double the regular rent amount).

Security deposit

You may also need to provide a security deposit to cover potential damages to the rental unit. The deposit is often refundable when you move out, provided you have met your obligations as a tenant and left the unit in the same condition in which you found it.

Utilities

If you are opening a new account with a utility, cable, Internet or telephone company, you may be required to pay a new account opening fee and a security deposit. The security deposit is often refundable after some time as long as you have paid your bills without delay and don’t owe any money.

Start-up expenses

What are start-up expenses?

Whether this is your first place or your thirtieth, moving always involves start‑up costs. Here are some things to consider when budgeting:

• Moving expenses—for example, rental truck or movers, pizza for friends who help out, moving boxes and other supplies, time off work
• Outfitting your place—furniture, dishes, kitchen utensils and small appliances, bedding, towels, cleaning supplies, etc.
• Legal fees—depending on the type of contract you need to sign, a lawyer’s review could be required
• New account fees—utilities and other companies may charge a one-time, non-refundable fee to set up a new account

Tool to track your start-up expenses

Use the Start-Up Expenses Worksheet to figure out the one-time fees you’ll have to pay upfront when you move out.

Ongoing expenses

What are ongoing expenses?

Whether you rent or buy, there are likely to be ongoing expenses above and beyond your monthly rent or regular mortgage payment. Depending on what is covered in your lease, the costs can include:

• Insurance—as a tenant or buyer, you should always have:
• contents insurance to protect your possessions in case of damage, fire or theft
• liability insurance to cover the cost if you accidentally damage the property of your landlord or your neighbours, or if someone is hurt on your property and decides to sue you.
• Parking
• Utilities, cable, Internet, telephone (home and/or cell)
• Laundry
• Property taxes (for homeowners)
• Condominium fees
• Property maintenance—if you own your home, you usually need to pay the costs of maintaining the property; if you rent, you may be responsible for some property maintenance such as lawn mowing, snow shovelling, etc.

Tool to track your ongoing expenses

The Ongoing Expenses Worksheet will help you keep track of the costs that you’ll need to pay on a regular basis.

Living alone versus having a roommate

Living on your own can be costly. Having a roommate (or more than one) can help lower your overall living expenses since you share the rent, utilities and other household expenses.

Finding the right roommate and deciding on your living arrangements can be part of the fun of moving out on your own—but it can also be a hassle. Write down what you are looking for in a roommate to help you make up your mind about whether someone would be a good fit. For example, if you are a student attending classes during the day and working at night, you may want to find someone with a similar schedule.

• If you decide to live with a roommate or roommates, first work out an agreement on your living arrangements and each person’s responsibilities. For example, how will rent and other costs be divided? How will cleaning duties be shared?
• Even if there is an agreement on living arrangements, be sure you understand your rights and responsibilities. Suppose your name appears on the lease or the account for utilities or other services, but your roommate is responsible for making the payment; you will still be held responsible in case of a missed or late payment. Your credit rating could also be affected and the information could show up on your credit report for several years.

Related Resources

Date Modified:

2011-11-21