You might be feeling both excitement and nerves if you’re about to rent your first apartment. It’s normal to feel this way, with so much to consider, from finding the right place to making sure it’s within your budget and everything else.
Plan some important details ahead to make apartment hunting easier. If you follow these simple steps now, you’ll be renting your first apartment like a pro in no time.
Determining your rent budget
Before you start your apartment search, you need to figure out how much you can afford. To determine this, you must draft a monthly budget that includes your income and expenses. Then, you can work out how much rent fits within your budget.
A helpful rule is to ensure your rent doesn’t exceed 30% of your income after taxes. Figure out the exact dollar amount. Now, go over your budget. If you don’t have enough money left after covering other expenses to pay rent, additional steps might be necessary before you start looking for an apartment. These options might include finding a roommate to share the rent, cutting down on other expenses, or finding ways to increase your income.
Common upfront costs when renting an apartment
Calculating how much monthly rent you can afford is a crucial first step, but you must also be ready for other expenses. Often, you’ll be expected to pay a security deposit upfront, together with the first month’s rent. The security deposit amount will vary, but it is commonly the same as the monthly rent.
You may also face other deposits and fees, like credit check fees, utility deposits, and additional expenses. You’ll need to determine whether utilities are included in the rent or if you’ll be responsible for paying them separately.
You’ll need to have funds available to set up utilities if they aren’t covered by the rent. In simple terms, you should have at least 2 – 3 months’ rent saved to ensure you’re prepared to move into your first apartment.
Prepare for the application process
Once your finances are settled, you can move on to searching and applying for your first apartment. Preparing your application materials ahead of time will help you act quickly when you find an apartment you like. You’ll need to have a list of documents and information ready to rent an apartment.
While this list may differ depending on the location, it’s wise to have the following ready:
- Your last two pay stubs or a bank statement
- Social security number
- Driver’s license or state ID
- Credit report
- Contact information for at least two references
Understand your lease agreement
During the rental process, it’s vital to closely examine your lease documents, including the fine print. As a binding legal contract, a lease holds you responsible for everything in it once signed. Understanding your duties, what your landlord is responsible for, and how aspects like maintenance and repairs will be managed, will help you feel secure. Be sure to verify that the rental payment, security deposit, and other amounts are accurate.
Lastly, check for any unusual or surprising rules or clauses to be sure you’re okay with following the lease terms. If you’re unsure about anything in your lease, ask someone you trust for guidance. The more you understand about the apartment, neighborhood, and landlord before signing the lease, the better off you’ll be.
Are you in the market for your first rental home in Durham or nearby? Get in touch with Real Property Management Impact today! Browse available rentals online for more information and to schedule a viewing.
Originally Published on Feb 26, 2021
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
