Renting your first apartment is a huge milestone—an exciting time to celebrate, for sure. But as a first-time renter, finding the perfect rental for your circumstances can be an ordeal. How do you ensure a smooth process and minimal (or no) snags along the way?
The good news is that many resources are available to guide you through the apartment-renting process. To get you started, here is some advice to keep in mind as a first-time renter.
1. Determine how much rent you can afford
One very important first step to finding the right apartment is deciding how much you can comfortably spend, based on your income.
According to Manisha Thakor, director of Wealth Strategies for Women at the BAM Alliance, one rule of thumb is that rent should not exceed one-fourth of your take-home pay. If you follow this method and have a monthly income of $4,000, you’ll want to find rentals that charge no more than $1,000 per month.
Another formula for determining affordable rent is to divide your annual household salary by 40. This calculation originated from landlords, who wanted to screen for renters who could comfortably pay their rent. So if your annual gross income (that’s before taxes) is $60,000, you’ll want to look for rentals that charge no more than $1,500.
2. Give yourself time to find rentals that meet your criteria
Finding an apartment can take anywhere from 30 to 90 days, depending on how competitive the local rental market is. To avoid “panic renting” or settling for any apartment, it’s best to give yourself enough time to view different rentals and find the best option.
Once you’re ready to begin your search, use apps and sites such as Realtor.com® to see rentals near you—all filtered by location, price, number of bedrooms/bathrooms, property type, and more. You can also filter out listings that no longer accept applications, to avoid inquiring about an unavailable apartment.
3. Compile the necessary paperwork for your rental application
In addition to a rental application, other documentation may be required to prove your income and reliability. Examples of these documents include:
One form of identification Two recent pay stubs A recent bank statement Credit, landlord, or personal references A job-offer letter, if recently hired University acceptance letter 1099 tax form, if freelancing or self-employed Pet resume with your pet’s breed, size, and vaccination historyYou may only need to submit some of these documents, but you can save time during the application process by preparing them in advance.
4. Consider creating a renter profile
Creating a renter profile can be a great way to apply for more than one rental property, without answering the same application questions over and over. Platforms such as Avail (part of Realtor.com) allow you to input your rental history and employment, and attach a credit or background check for a one-time fee.
Since your profile can include relevant screening reports that landlords often request, this will help you avoid repeated application fees to various landlords. It can also help limit credit checks. Laws vary from state to state, regarding whether landlords are required to accept renter profiles. So before creating a profile, refer to local landlord-tenant laws to confirm your state’s requirements.
5. Research your rights as a renter
There are rules and regulations in place to protect landlords and tenants during the lease term. If this is your first time renting an apartment, research your local tenant rights to know what your landlord can and can’t do.
For example, some states have security-deposit laws that require landlords to provide a receipt outlining where the payment is held. States also require landlords to provide reasonable notice of at least 24 hours before entering the property. For all renters—and particularly for first-timers—understanding rights is important. It can help minimize the chances of a landlord violating them.
6. Compile a list of questions to ask at property showings
Property showings offer a chance to ask questions and learn more about the rental property and landlord. Before attending virtual or in-person showings, write down five to 10 questions you’d like to discuss with the landlord. Some examples of common questions include:
How much is the rent? Are utilities included in the rent? How do you prefer to collect rent payments? How are regular and emergency maintenance issues handled? How secure is the property? Is on-site parking available? For free or for a fee? What screening reports are required with the application?Additionally, showings afford an opportunity to talk through any negative remarks on your credit report. It’s also a good time to share what you’ve been doing to improve your credit score. If you cannot authorize screening reports with a social security number (SSN) or individual taxpayer identification number (ITIN), communicate this with the landlord or property manager. They will be able to explain what your alternative options may still be for applying. And by making a good impression, you can also increase your chances of getting approved for the rental.
According to a survey by Lemonade and OnePoll, landlords view good tenants as people who pay rent on time, keep the place clean, follow house rules, and are employed. If you’re able to prove a track record that demonstrates these behaviors, landlords will be likelier to approve your application.
7. Read the entire lease agreement before signing
A lease agreement is a legally binding contract that outlines the rules the landlord and renter are required to follow. To ensure none of the clauses violate your rights and that you understand the requirements, read the entire lease agreement before signing.
It’s important to also verify that the lease states the correct information the landlord communicated to you throughout the screening process. Check that your name is spelled correctly, the correct rent price is outlined, and the lease term you agreed to is specified.
If you identify any errors, communicate them to the landlord and request that they send a revised version of the agreement. Avoid signing the lease if you find issues. This can become legally binding if the landlord countersigns the document, which makes it more difficult to modify.
8. Invest in renters insurance
States don’t require renters to have renters insurance, but some landlords may require it for their rental properties. The great news is that renters insurance helps protect you and your belongings while you are renting. Rental insurance costs an average of $18 per month; but providers vary in pricing, which also depends on the coverage level.
Some landlords may require that your renters insurance cover pets, too. When shopping for insurance, inquire about pet-coverage options.
9. Get visual proof of the rental’s condition before moving in
Landlords generally perform rental-property inspections before new tenants move in, to identify existing property damage. But landlords can miss certain details, so take photos or videos of the rental’s condition before you move in. This can help you avoid charges for property damage you didn’t cause.
Additionally, you can request an inspection with the landlord before you move your belongings in, so they’re aware of any issues they need to address.
10. Report rent payments to a credit bureau
Rent payments are often the most significant monthly expense, so why not use it to benefit your credit? If your landlord is already using a platform like Avail to collect rent, you can turn on CreditBoost when submitting your payment. This allows you to report the transaction to TransUnion for $3.95 per payment.
Other options, such as Rent Reporters and LevelCredit, allow you to report rent payments independently for a monthly fee. Reporting rent payments to credit bureaus can help rehab or build your credit, which is especially helpful if you plan to buy a home in the future.
Final thoughts
Having a plan is the best way to simplify your first apartment-rental experience. With these tips, you can feel well-prepared for the unexpected and increase the chances of being approved for your dream rental.
You can begin your apartment search at Realtor.com, to find the latest rental listings near you.
The post 10 Tips First-Time Apartment Renters Can’t Afford to Overlook appeared first on Real Estate News & Insights | realtor.com®.