Renting your first apartment can give you greater freedom and flexibility, but if you haven’t done it before, it may seem overwhelming. However, it doesn’t have to be that way. These guidelines can help you find a place that meets your needs and budget.
Determine How Much You Can Afford
Before you even start looking for your first apartment, determine how much you can comfortably pay in rent. Experts disagree on the exact percentage of your income that should go toward rent, but the figure often cited is that rent costs should account for 30% of your monthly income. The Department of Housing and Urban Development considers families that spend more than 30% of their income on rent to be “cost-burdened.”
When calculating an affordable rent that you can handle, you should also consider your debt payments, daily living expenses (groceries, dining out, entertainment), and other bills. Review your entire budget before you begin your search for an apartment. Make sure to leave enough money for debt repayment and savings, in addition to rent and other expenses.
Find the Area You Want to Live In
You should determine the best location for you. Factors to consider should include finding a neighborhood you love with attractions and businesses you enjoy. Another key factor in determining the best area for you should be its proximity to your job.
Generally, the farther you are from work, the higher your transportation costs will be. There may be a trade-off here — housing costs typically decrease when you move away from major urban areas. The savings in rent may outweigh the extra transportation costs, and living close to a public transit line can help further reduce your transport expenses.
Note: Many apartment search websites and apps allow you to specify searching for an apartment in a particular area and see the rental price range within that area.
Decide Whether You Want to Share Housing with Someone Else
After determining the general price range you can afford, decide whether you want or don’t want a roommate (or roommates). Sharing a place with a roommate comes with its benefits and drawbacks. You may be able to afford a larger apartment with more amenities if you share the rent costs, but you will also sacrifice some of your privacy. If you are used to living with others, having roommates may be your preference. For others, roommates can add a lot of complications to their living experience.
You may find it’s cheaper to split the rent on a multiple-bedroom apartment instead of renting a one-bedroom or studio apartment for yourself. Calculate the costs to understand how much you can save along with the loss of privacy.
Gather Strong References
Many landlords consider credit scores to be the most important point when deciding whether to rent an apartment to a potential tenant. As a first-time renter, you may not have a significant credit history to draw from — this is where references come in.
Good references can be the key to securing the apartment you want. You may not be able to list previous landlords as references, but you can turn to your workplace. Your supervisors and managers can speak to your responsibility and performance at work. Having a manager at work can also reassure a potential landlord that you have a steady income to pay the rent.
If possible, ask your references to write letters in advance. This way, you will have these letters ready to add to any application.
Note:
Avoid getting references from friends and family, if possible, as those references will hold less importance for landlords.
Start by looking at 5 properties
Once you decide on one or two areas you want to live in, it’s time to start your search. Look online and in local newspapers. In hot housing markets, apartments may be rented before listings appear online, so you might want to walk around the neighborhood to look for any “for rent” signs. Contact several property management companies to see what apartments they have available.
When property managers start showing you around, stick to viewing only five properties at a time. Otherwise, you might feel overwhelmed by the logistics and tours. Worse, all the properties may start blending together, and you’ll forget which ones you liked the most. You might consider taking photos of both the inside and outside to help you remember the apartments.
Clarify utility costs
The last thing you want is to move into your dream apartment only to realize that you can’t afford the heating, electricity, and gas bills that come with it. Apartment complexes may cover various utilities, which can help you save money, but you are likely to be responsible for some utilities. It’s important to clearly understand which utilities you will be responsible for covering.
For utilities not included in the rent costs, get an estimate of how much you can expect to pay monthly from the realtor, landlord, or utility company.
Take your time to decide
Although you may feel pressured to make an immediate decision, you should take at least 24 hours to think about whether you want to apply for an apartment. This gives you time to diffuse the excitement that comes from finding a place so that you can realistically consider what living there would be like. Consider all factors when making your decision. It’s unwise to go for the first apartment you find or the cheapest one if the building is run down or unsafe.
Note: An apartment on the second floor is generally safer than a unit on the first floor.
Submit the application
Once you decide on an apartment you like, you’ll need to fill out an application, which will likely come with an application fee. Many applications may ask for permission to conduct a credit check. If you don’t have good enough credit history, the property manager may ask you to have someone else sign your application as a guarantor. Alternatively, you may also have to pay a larger security deposit. Make sure that all the information listed on the application is correct and accurate to avoid delays or rejections.
Read the lease carefully before signing
Carefully reviewing the lease will save you a lot of headaches down the road. The lease contains important information, including your responsibilities for the property and the rules you need to follow while living in the apartment. The lease should be written in a language you understand, but if something doesn’t make sense to you, don’t hesitate to ask the landlord for clarification. Some tenants may go as far as hiring a lawyer to review the lease before signing.
Most apartments will require a security deposit upon signing the lease. You may also need to pay the first and last month’s rent upfront.
Frequently Asked Questions (FAQs)
How can I budget for my first apartment?
Thinking about how to budget for your first apartment can be a little overwhelming, especially if you haven’t budgeted before. Fortunately, creating your budget is easier than you think and takes only four simple steps to get started. First, calculate your monthly income from your paychecks. From there, add up your monthly expenses and subtract them from your income. The more accurate you are, the more useful your budget will be. Add an extra amount for emergencies and reserves, and you’ll have outlined your living expenses.
Do
Do I need renter’s insurance?
Renter’s insurance protects those who rent a house or apartment from losses due to damage, theft, vandalism, and damage caused by smoke or wind. Renter’s insurance is not legally required, but most landlords will require you to have a policy. If the homeowner provides their own insurance for the rental, check the agreement to see what is covered and what is not covered. Although renter’s insurance is not mandatory, it is in the best interest of the person renting to have a policy as an additional layer of protection in case anything happens.
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Sources:
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts in our articles. Read our editorial process to learn more about how we fact-check and maintain the accuracy, reliability, and quality of our content.
U.S. Department of Housing and Urban Development. “Renting: Rethinking Cost Metrics.”
Source: https://www.thebalancemoney.com/how-to-rent-your-first-apartment-2385952
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