If you’re thinking about renting your first apartment, you might feel both excited and nervous. It makes sense to feel this way, with so much to think about, from finding the right place to ensuring it fits your budget, and everything in between.
Make your apartment search smoother by preparing the essential steps beforehand. By following these basic steps now, you could soon find and rent your first apartment like a pro.
Determining your rent budget
It’s essential to calculate how much you can afford before starting your apartment search. To determine this, you must draft a monthly budget that includes your income and expenses. Afterward, you can calculate how much rent you can reasonably afford.
A good rule to follow is to allocate about 30% of your after-tax income to rent. Figure out the exact dollar amount. Now, assess your budget. If your remaining funds after other expenses aren’t sufficient for rent, you may need to take some extra steps before apartment hunting. These steps could involve finding a roommate to split the rent, cutting back on other expenses, or boosting 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. Generally, you will be required to pay a security deposit along with the first month’s rent upfront. The amount of the security deposit can differ, but it’s typically equal to the rent payment.
There may be other deposits and fees, such as credit check fees, utility deposits, and other related costs. You should check if utilities are included in the rent or if you’ll need to cover them on your own.
You’ll need to have funds available to set up utilities if they aren’t covered by the rent. To put it simply, you’ll want to save up at least 2 – 3 months of rent to make sure you have enough for your first apartment.
Prepare for the application process
When you’ve got your finances figured out, it’s time to start looking for and applying to your first apartment. Getting your application materials prepared beforehand will allow you to move fast when you find a place you like. Renting an apartment requires a list of documents and information.
This list can vary from place to place, but it’s smart to have the following on hand:
- 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
It’s important to carefully read your lease documents, including the fine print, as you go through the rental process. A lease is a binding contract, and signing it commits you to everything it includes. Knowing your responsibilities, what your landlord will cover, and how maintenance and repairs will be dealt with will give you a sense of security. Make sure the rental payment, security deposit, and other amounts are correct as well.
Lastly, check for any unusual or surprising rules or clauses to be sure you’re okay with following the lease terms. Reach out to someone you trust if you have questions about your lease. In fact, the more information you gather about the apartment, neighborhood, and landlord before you rent, the better it will be for you.
Are you in the market for your first rental home in Beaverton or nearby? Get in touch with Real Property Management Assurance 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.
