Making the decision to rent is exciting and terrifying at the same time. For many people, there are a lot of unknowns. As you enter the process of navigating the rental market, there are a few simple things you can do to avoid common, often costly mistakes. By spending a few minutes creating a strategy, you'll be able to make confident decisions.
Start with a Budget
Before anything else, consider your budget. This will determine where you look and the type of property that fits your needs. The budget for your apartment is more than just your monthly payment. It needs to take into consideration all of the following factors:
- The rental cost, or the monthly payment you'll make
- Utility costs, including electricity, water, sewer, and others
- Parking fees as applicable
- Insurance costs
Consider your current costs as well. For example, if you have a car payment, student loans, or credit card debts you pay each month, be sure to include them in your budget. You also need to consider food costs, gas or transportation costs, and any other costs you are paying right now.
Tip: If you're not sure how to budget for rental utilities, speak to those in your community who are renting to get a good idea of what they are paying. Choose someone who lives in an area similar to where you wish to live in the same type or size location, such as a one-bedroom apartment.
What to Look for in an Apartment
Now that you know your budget range, the next step is to start touring apartment complexes. There are a few key things to look for specifically.
Approaching the building
Does the location seem clean and tidy? Look at the exterior to spot any areas of concern, such as unkempt areas, debris piling up, or areas of damage on other units. Is the area accessible to your work or other activities? You also want to consider the amount of available parking for those who live there and what that means for your access.
Consider the common or shared areas
The building should be locked, requiring a passcode or key to enter. Are the hallways and shared areas in good condition? How does the area look in terms of condition? Remember that you want to look where they don't show you, such as down adjoining hallways. Visit the laundry room, and if there are on-site amenities, like pools or fitness areas, take a look at those areas as well.
In the unit
Once you are in the space, carefully consider the layout and how natural it feels.
- Are the carpeting and walls clean and in good condition?
- Are the appliances included in good condition?
- Do you find that the area is open enough for you?
- Look out of the windows to see what is present.
- Are the windows in good repair and locking?
- How is mail delivered?
- Where does the trash go?
- How does the area feel? Cold or hot?
Ask questions about your responsibilities within the property as well as what you can expect in terms of maintenance.
After you go home from the tour, consider the location. You'll likely have numerous questions. Write them down and ask them. Don't assume anything related to the property.
Signing a Lease: Factors to Consider About the Legal Process
In the ideal situation, it is always a good idea to have someone else with you to ask questions and review your lease. Having a second eye on it allows for improved clarity along the way. This is a legally binding agreement. Anything you sign, you are promising to maintain. For that reason, take into careful consideration the following factors.
Length of the Lease
How long is the lease in place? Many are 12 months, but they could be longer in some situations. You will want to know when the lease starts—even if that is before your move-in date—and when the final day is to move out.
Next, take a look at what happens towards the end of the lease. Many leases contain clauses about how much notice you must provide to the property management company or owner before moving out. For example, if you do not plan to renew your lease in the following year, you may need to provide a 30-day warning to the property owner of your intent to move.
Finally, learn what happens if you want to break the lease, meaning you want to move out before the end of the lease. There could be fees involved. Additionally, some leases are written to require you to continue to make payments on your lease until it ends, even if you move on. You need to know these details now so they are not unexpected later.
Pets
Always clarify the policy on pets. If you can have pets, there are several questions to ask:
- What types of pets are allowable?
- Is there a limit on the number of pets or the size?
- Are there any types of animals that are strictly prohibited?
- Is there a deposit or added cost for the pet?
- If the pet needs access to the outdoors, how can you provide that, and what requirements exist for caring for the pet's needs?
It is common for your lease to address pets and require a larger deposit or an added monthly cost. Make sure you know this now, even if you do not have a pet.
Security Deposits
A security deposit is like a down payment. You are providing an added fee, usually the same as your monthly rent, that will be put into an escrow fund. The money remains there long-term until the end of the lease. Your lease should tell you:
- How much is the security deposit
- The conditions under which the security deposit is confiscated, such as the types of damages to the property
- The conditions for recovering the security deposit at the end of the lease
Rent Payments
Read the details about your rental payment. You will likely have to make a payment each month. The lease will specify the amount, when it is due, and how it must be paid. Understanding all of these factors is critical. You need to know where to send your payment, the various options for making the payment—such as online or in person—and what fees are associated with missed or late payments.
Guest Policies
Most leases have specific rules regarding guests. For example, they may specify whether you are allowed to have guests, who typically stay overnight at the apartment. If you plan to have guests often, clarify any rules regarding this, as in some situations, they may qualify as a second renter on the property that must be approved.
Locks
Have you changed the lock before moving in? You certainly want to make sure no one has the same code or keys as you for your new residence. At the same time, you also want to know the rules about installing your own locks and any limits on factors such as using doorbell cameras or security systems on your property.
Whenever possible, request a full review of your lease by an attorney. If you are unsure of any component of it, ask questions. Do not just sign the lease and then hope that you will figure it out later.
