What You Should Know Before Renting for the First Time

Are you ready to move into your very own place? As a first-time renter, there are several things you must take into account before signing a lease agreement.

If you rent without knowing what to look for, it is easy to miss critical factors that could make a property unattractive (think about bad neighbors, unsafe neighborhoods, noise disturbances, or unaffordable expenses).

And once you hand over a security deposit and put your signature down, you are legally tied to certain responsibilities. There is little chance of getting out of them unless you are ready to shoulder the financial consequences and meet the requirements of terminating a lease.

But with our detailed guide, you can easily sidestep many of these issues and rent your first apartment or house with confidence. Here’s what you need to know.

Consider Personal Safety

There are two major factors to take note of here. One is location safety. To check this, you will have to do a physical inspection of the property and its surroundings. Pay particular attention to safety features like access controls, alarm systems, CCTV, door and window locks, and fire exits.

Also, walk around the neighborhood and look for red flags of security issues, such as empty or boarded-up houses, graffiti, and signs of vandalism.

Using the property address, you can also check neighborhood safety on Nuwber and learn more about the neighbors, nearby streets, and sex offenders residing locally. This platform will further help you verify the property owner’s details, which brings us to the second key safety factor to be mindful of—avoiding potential scams.

The rental market has its fair share of frauds. And many first-time renters are prone to fall for these. So, remember to take your time to research the property, confirm ownership, arrange for a viewing, and discuss rental terms before handing over a deposit.

Estimate What You Can Afford

The cost of renting your own place does not just involve the monthly rent. There are lots of other one-off and recurring expenses you must consider.

Upfront renting costs typically include the application fee, security deposit (often one month), and the first and last month’s rent. On top of these, you will need to buy furniture, kitchen equipment, and the like. If you go for a furnished rental, you still have to purchase bedding, cleaning supplies, cutlery, etc. Then, don’t forget moving costs.

In addition, there are regular expenses most first-time renters forget to factor in. These include electricity, gas, water, cable, internet, home maintenance, and renters’ insurance.

To keep costs within an affordable limit, prepare a budget by taking into account your monthly income and all the potential costs. As for rent, keep it at 30% or less of your salary.

Determine the Must-Have Requirements

What should you look for in your first rental property? Be careful when picturing your ideal home. Added perks come at a cost. So, if you are working with a tight budget, separating the must-haves from the good-to-haves is important. Of course, each person will have their own priorities based on their specific circumstances. Nevertheless, some of the key aspects to think about include:

• The number of rooms and the average square footage.
• Type of rental property (for instance, a studio, apartment, or house).
• Furnished or unfurnished.
• Preferred duration of renting.
• Parking requirements (sometimes you may need to pay extra for this).
• Possibility of keeping a pet (can it pass pet screening?).
• Being close to your workplace or school.
• Proximity to public transport and highways.
• Access to pubs, restaurants, grocery shops, supermarkets, hospitals, and other amenities.

Inspect the Property in Detail

You should never rush to rent a house or apartment without a thorough inspection. This is essential for avoiding unexpected costs later on and negotiating a better (or reasonable) rate. Here are a few tips to keep in mind.

• Go through fixtures and fittings and make certain they are in working order. For instance, open the taps, look inside cupboards, and turn on lights.
• Check the interior and exterior for cracks, dents, corrosion, and other damages. Water damage, musky smells, or pest infestations, for example, can indicate more serious issues.
• Ensure there are fire and smoke alarms.
• Consider the amount of storage space available.
• If you drive, check the provided parking space.
• Visit the location several times, ideally in the evening and during the morning hours, and take note of noise levels, traffic, and safety.

Get the Necessary Paperwork in Order

To minimize risks, landlords will ask for certain documentation to confirm your identity and income (in addition to the rental application).

The basic paperwork you should get ready with includes:

• Valid ID, like a driver’s license or passport
• Recent pay stubs (usually for up to 3 months)
• Bank statements
• Proof of renters’ insurance
• References
• Credit report

The details in these should match what you have mentioned in the rental application. Some landlords could also ask for more documentation and a lease guarantor or co-signer, especially when you have no prior rental history.

They will typically perform a credit and background check, too. So, if there is anything on the internet or in your credit reports that could reflect badly on you, ensure you get it corrected or removed (if possible) before it turns up on a background screening.

Key Takeaways

When you are renting a place for the first time, there are a few things to keep in mind to avoid rookie mistakes. Assessing the potential costs and preparing a budget is one of the first things to do when deciding how much you can realistically afford to pay. Then, review your basic requirements, consider safety risks, inspect the property in detail, and get the necessary paperwork ready.

Before you sign the lease agreement, read it to fully understand the terms of renting. For instance, what is the security deposit, are pets allowed, when is the rental payment due, is subletting possible, and what rules and regulations should tenants comply with? Clarify all the details relating to areas you are unsure of so you know precisely what you are getting into.