Renting your first home in a New Country

The process of renting your first home, will be unique to each country. This holds true, regardless whether your first rental is an apartment, house, basement, or any other kind of living arrangement. Furnished or unfurnished. Rental options, contracts, fees, acceptance requirements, and deposits can vary drastically from country to country.

By no means an exhaustive list, here are some financial aspects to be aware of when scouting for your first rental.

Deposits and rent due in advance

Although deposits are relatively standard in most countries, there are places where a deposit is illegal and alternative arrangements do exist.

Deposits can vary drastically in value depending on a variety of different factors, including but not limited to location. In Canada, many prospective landlords will also request a credit score before approving a rental application. As a newcomer in Canada, chances are you may not yet have had the opportunity to build up a credit history. Depending on individual circumstances and location, newcomers have ended up in situations of needing to pay 3 or even 6 months’ worth of rent expenses in advance.  

This can however differ drastically by province. In Ontario, security deposits are not legal, instead, the standard is to request the first and last month’s rent, rather than a deposit.

Key Fees

Key fees, although not common in every country, are completely different to a deposit. In Japan, key fees are quite common and are a non refundable gift to the landlord. Key fees can differ greatly in value. Do note that not every apartment will necessarily have a key fee and that such fees may also be negotiable.  An alternative solution can include offering a higher monthly rent to avoid the once-off key fees.

Pet Fees

This is a very common concept, especially in Canada. Apartments can request a pet fee, which is generally a non-refundable expense per pet. This can be in the form of a once-off payment at the start of the lease, or a monthly add-on to your rent expense, depending on the individual landlord’s pet policy.

Tenants’ Insurance

Tenants’ insurance is not a rental requirement in either South Africa or Ireland. This was a new, unexpected expense for me upon arriving in Canada.

Tenants’ insurance is a common request and is an essential element of renting in Canada. On approval of a rental application, many landlords will require proof of tenant insurance.  Quite often, the landlord will specify the required insurance coverage.

You, as the tenant, will arrange your own tenant’s insurance with an insurance company of your choice, and provide the landlord with proof of insurance. Insurance fees are paid monthly or annually based on individual preference. Tenants’ insurance creates peace of mind that your belongings are covered, should unexpected and unfortunate events occur.

Amenities included in an unfurnished rental

It’s amazing how views can differ in this aspect. Be prepared, that renting in your new country, may include or exclude some appliances or amenities that might be different from your norm.

In South Africa, an unfurnished rental will only include the items that are physically part of the unit (e.g., the stove and fixed cupboards), this does not usually include items such as a fridge, microwave, dishwasher, etc. You, the tenant, will provide these at your own expense.

In Canada, an “unfurnished” rental will generally include some of the appliances, mainly the fridge, dishwasher, and in some instances a washer, dryer, and microwave. Condo buildings, may have a dedicated laundry room instead of an in-suite laundry option.

Ireland, is different yet again. Many apartments already include basic if not all furniture. This consists of the appliances as well as items such as beds, tables, chairs, etc. Truly unfurnished apartments do exist, but they are far less common. The general culture in this country is to rent furnished.

Separate Charges

Be aware, that in some instances charges can be separate add-ons to your lease expense. This is not always the case but is something to be watch for. In Canada, in addition to pet fees, quite often parking and storage are extra as well.

Rental Timing

Not all countries charge rent monthly. In places like Australia and New Zealand, rent is generally a weekly expense. Be prepared. Budget accordingly.

The lesson in renting your first home in a new country:

Read your new lease contract with a fine-tooth comb. Ask questions and shop around. Compare lease agreements between different rental options. When looking for your first rental don’t be afraid to ask questions and make sure the rental you are considering, suits your needs.