If you are about to move into your first housing unit, no doubt it’s an exciting time. Your space will be yours to design, decorate and, above all, make your own. However, what is the best way to jump from looking at apartment listings on the Internet to signing the lease and getting rental insurance? Thinking through all of these logistics is thrilling but a tad overwhelming.
Being a first-time renter is an enormous step, with several milestones, responsibilities and checkpoints. Still, it’s a great feeling of freedom to determine what you truly want to call home. To make this process easier, we’ve put together a guideline that will walk you through everything from planning your rent payment to discovering a suitable place to pay your deposit.
How pricey is the apartment you want?
The amount of money you have will significantly influence your choice of apartment. Regarding real estate, it is advisable to stick to the 30% limit. Your total rent expenses should be at most 30% of your earnings. For example, your housing budget should include rent, pet expenses, parking fees and tenant’s insurance. It will ensure that you have the funds to cover your remaining payments.
When setting your financial plan, it is best to list all your earnings and costs. This list will give you a more accurate picture of which expenses to cut back on if necessary. Allow some leeway for essentials, such as food, and fixed costs, such as your vehicle loan payment. Calculate 30% of your earnings and think about what you need to do (and where you could cut) to free up this minimum amount to finance your home.
If you are on a tight budget, having a list of essentials would be constructive. Although you may need more money for everything on this list, knowing your necessities will make it easier to narrow down your alternatives than you might think. Plus, it will allow you to ensure that your concerns are considered. For example, if you own a dog, choosing pet-friendly apartment matters more than getting another bathroom, even though the average cost is about the same. Carefully consider your requirements and what you are willing to sacrifice.
Sharing a house can be an ideal way to reduce expenses. You will be sharing the rent, utilities, and other household bills. However, this solution has its advantages and disadvantages. You might consider living alone in a downsized space if you value your solitude. On the other hand, if you need company, a roommate may suit you.
Tips to make finding your first housing unit easier
Nowadays, apartment searching is almost exclusively done online; this method is much more efficient than driving around town hoping to find “for rent” notices in windows. However, before you start searching online, you’ll need to determine where you want to live. If you wish to live near a school, a workplace or public transport, set these parameters beforehand to filter your Internet search results appropriately. The building’s size and the unit itself could also influence the neighborhood in which you live. While you may be able to find a house for rent in a cheaper area, you’re likely to discover more high-rise listings in a city with a high urban concentration.
Most of the time, it is easy to choose online the number of rooms and washrooms as well as the equipment you want. If you are a pet owner, you can find pet-friendly apartments and find out if a deposit is required. Also, you can look for apartment signs as you walk around the neighborhood, which is an excellent way to help you feel the overall ambiance. After selecting your favorite location, go for a walk and take note of all the rental notices. Write down the corresponding numbers and do some calling later to see if the places are right for you.
After figuring out your parameters and criteria, refine the results to suit your budget (keep in mind the functionalities and amenities you might sacrifice to make sure you can get the apartment). Once you’ve identified a few potentially good options, contact the rental offices or owners and schedule viewings.
How to complete the rental application
Signing a rental agreement can seem a little daunting, but several tips will ease the process. First, gather all your relevant basic information. Most apartment rental applications require information about your driving license or ID card and social security number. You will also have to submit documents proving your employment and salary. If you are attending college and a parent is co-signing, they will also be asked to submit their personal information. You will also be charged an application fee at the time of application. This fee is sometimes waived or refunded when you lease the apartment.
At the time of each application, the management company or the owner will perform a credit check to determine if it is safe to rent an apartment to you. If your credit still needs to be established, you will probably need to use a co-signer to become eligible. Before applying for housing, consider taking out a low-budget credit card to build your credit rating. Using it and paying it off monthly will create a good credit history showing the landlord or property company that you deserve to be an applicant.
Lease signing
The signing of the lease is undoubtedly the most exciting phase of an apartment rental. After approval of your application, the lease agreement, which outlines every detail from the rent to the lease length, is signed to formalize it.
However, before putting your signature on the lease, read it thoroughly. If anything seems problematic, you should ask questions about it. Before agreeing to sign this document of legal value, every detail must be precise. Be aware of where you should submit your rental payments and when they are due on a monthly basis, but also check the guest and maintenance regulations for which you will be responsible. Upon signing your lease, a security deposit, the first month’s rent, and potentially a pet deposit or the last month’s rent will also be paid, depending on your lease terms.
Payment of a security deposit
You are now officially a tenant! All you have to do is pay the security deposit. It is a kind of insurance that you pay to the owner or administrator of the building to cover the cost of repairs if something is damaged in the unit while you reside there. The amount varies but is usually roughly the exact monthly rent cost. It will be returned to you by the landlord when you move out, provided you did not cause any of the damage described in your rental agreement.
Before moving in, take stock of your home’s condition. Photograph any damage before taking possession and inform the landlord so that they can add this info to the contract. Thus, if the landlord accuses you of breaking or damaging an item, you can prove that it was already there before you took possession. As soon as you move out, the landlord will examine and check the unit. If the damage is beyond reasonable depreciation, the landlord may deduct the cost of the repairs from your security deposit. Some apartments may also require a pet deposit.
Settling rental insurance and utility bills
Before your move-in, some essential items need to be taken care of. First, purchase renters’ insurance to handle emergencies while you reside in your new apartment. Most property owners will insist that you buy a tenant’s insurance policy and show proof before moving in.
You should also contact any utility companies to have them set up in your name. Be aware that, depending on your location, services such as cable and Internet might be provided with the rent. If not, give these companies, as well as the electricity, gas and water companies, a call before moving in so that you don’t experience a service disruption.