Before Renting Your First Property, Do Your Homework
It’s time! Whether you are finding your first place after graduating from university, leaving your parent’s home for the first time, or moving to a new city – you are ready to sign a lease on a new home and start renting. However, before you sign your name on the dotted line, you have many things to consider.
Income and Expenses
First, take a look at your income and expenses. As a general rule, your monthly rent should not exceed 30 percent of your take-home pay. Keep in mind that this total should include rent as well as any utilities not covered by your lease. If you have just graduated from university, be prepared for a bit of sticker shock – real world prices for phone service, cable television, and internet connection and other services related to renting may more than what you are used to paying.
Hidden Costs when Renting
Don’t forget to factor in “hidden” cost that can add on to your first month’s rent. According to MSNBC, first month’s rent in a new place can cost an additional $4000. This includes expenses such as an application fee, credit check, security deposit (typically a full month’s rent), pet deposit if applicable, and one-time cost to turn on utilities.
Needs vs. Wants
After you have considered your budget, consider your needs vs. your wants when looking at a rental property. Needs are things you are unwilling to compromise on including location, proximity to public transportation, or whether or not a property will allow pets. Wants include things that would be nice to have when renting – such as gym membership or an upper-level unit – but are not necessarily deal breakers. Remember, your list of needs and wants is unique to you and may change over time.
Looking at your Renting Possibilities
With so many rental properties listed online, it is tempting to take a virtual tour and decide on your new home without visiting the property. However, it is highly recommended you visit properties in person to get a feel for the neighborhood, rental community, and the unit itself. If possible, it is best to see the actual unit you may be renting. Don’t be shy about testing appliances and faucets to make sure everything is operating properly. Bring a tape measure and your imagination as well!
Have Your Paperwork Ready
The rental market in Montgomery County is very competitive. When you are ready to rent, make sure you have all your paperwork ready in order to move quickly on your dream home. Make sure you have the following items:
- a copy of your credit history and scores (if possible)
- a record of current income and employment dates
- statements from your checking and savings accounts
- have a co-signer lined up, just in case
- contact information for several character references
The Nitty-Gritty: Understanding the Lease and Renters Insurance
You don’t have to be an attorney to understand the fine print on a lease. Make sure you take the time to read the lease agreement. Common stipulations include roommate/sublease restrictions, penalties for late rent, protocol for repairs, fees for unreported pets, and lease termination.
Finally, in order to protect your personal belongings, consider taking out a renters insurance policy. Often insurance companies will offer discounted prices to clients who take our renter's insurance in addition to auto insurance.
Renting for the First Time? Contact Us
Do you have specific questions about becoming a first-time renter? Please don’t hesitate to contact us for advice and support!
