If you do not have your property, chances are either you are staying with your parents or you are renting a property outside. Staying with your parents and having a steady income, chances are you will be providing some form of pocket money to your parents as part of your filial duties to them.
you are renting, the rental will likely be your biggest portion that takes up the bulk of your income. It’s also one of the major headaches (bill) that causes you to worry and be stressed out. If affordability becomes an issue, you won’t have a place to stay. Therefore, it’s important to calculate your rent budget before moving into a place that you can call your own.
The Rule of Thumb for Your Rent Budget
Typically, the recommended spending for the rental is between 20-30% of your income. However, this varies depending on your lifestyle preference and the room/property that you have chosen to stay in. Location plays another important factor in determining the rental rate. Some landlords provide additional services like full wear-and-tear maintenance, free use of high-speed internet and some even cover your utilities usage (usually capped at a certain level to prevent abuse).
Other charges to take note of include security deposits, the first month’s rent, agreement fee and sometimes they charge agent’s fees. All these costs should be factored in when renting the room/property. Although these are one-time costs, nonetheless, they need to be paid out at the same time. Remember to include these into your rental budget, on top of paying your monthly rental.
|Security Deposits||1 to 2 months of Rental Rate||Depending on duration of stay|
|Utilities Deposits||0.5 to 1 month of Rental Rate||Depending on duration of stay|
|Agreement Fees||Range from RM100 ~ RM500</p||May include e-Agreement & e-Stamping fee|
|Agent’s Fees||1 month of Rental Rate||Typically, this is paid for by the landlord|
|Zero Deposit Insurance Fees||Range from 8%-15% of Monthly Rental Rate (for tenancy of 12 months)||Typically, this is paid for by the tenant and the beneficiary is the landlord|
Renting a Room vs. a Whole Unit (High Rise or Landed)
Renting a Room in High-Rise properties usually comes with certain features and amenities. This can help to reduce the cost of spending, e.g. Laundry, Gym, Swimming Pool, or Co-Working space. Nowadays, many landlords for Landed properties are offering similar amenities or discounts to nearby amenities, to compete with those in High Rise. So, do check out with the landlord that you are planning to rent from. Find out what are offers that they can throw in, to help you stretch your budget a bit further.
With High-Rise properties, usually, it will come with gym usage at the common amenities area. This can help to remove the cost of a monthly gym membership for you to work out and stay healthy. If it has laundry, you won’t have to spend your money at a laundromat. Most room rentals provide common amenities like kitchen appliances and a washing machine (or 2-in-1 washer & dryer). Some High-Rise properties come with special amenities, like children’s parks, indoor or outdoor swimming pools, dance studios, rooftops with BBQ facilities, and social or co-working lounges. Even with Landed properties, many are in gated and guarded properties. Therefore, they do have similar amenities like lounges, parks, and pools.
Renting a room usually will come with internet services and wear-and-tear maintenance included. This can significantly reduce your budget in the long run. Nowadays, most internet providers require a minimum contract of 24 months when it comes to subscriptions. Plus, you do not have to worry about allocating emergency spending for things like leakages, burst pipes, toilet clogged, electrical wiring problems, and many more. All of these can add up to your already stretched budget.
Utilities are not avoidable unless you are not planning to use any. It’s another factor in determining rent cost. Some landlords do provide rentals that include utilities that allow you to save money easier and stretch your budget more. However, do find out the terms and conditions, as these are usually capped at a certain level and do not include the usage of air conditioners or water heaters.
Once you have set out your rental budget, you can start to look for the place of your dreams. Remember to consider your spending costs and income when choosing a place to call your own. Remember to also consider amenities and initial costs. With all these covered, you can focus on finding a new place to call your ‘home away from home’.
Start your search today at Malaysia’s Largest Room Rental Listing Platform with over 100,000 rooms to choose from, with many offering Zero Deposit at iBilik.my
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