Getting your own apartment for the first time can be a great experience. But while it’s easy to get caught up in the thrill of apartment hunting, you must be practical.
Signing a lease is a big commitment, and protecting yourself financially is imperative. To make sure your experience as a new tenant is a positive one, here are five things you must do.
1. Find out your total upfront and monthly costs
When you shop for an apartment, it’s important to know the total amount you’ll have to pay to move in as well as your monthly costs after you’ve become a tenant.
“Upfront cash required for your first apartment can be steep,” warned Scott Bierbryer, co-founder and chief operating officer of VeryApt, an apartment search and review website.
Bierbryer explained that it’s common for a landlord to require both first month’s rent and last month’s rent as well as a security deposit before you move in. Security deposit amounts vary but could equal one month’s rent or be set according to state laws.
You’ll also need to know what your ongoing costs will be, including rent and utilities you’re responsible for paying, such as electric, gas, water, internet, and garbage.
“Make sure that the monthly payment you’re going to take on is affordable,” advised Glen Henderson, a Realtor with Alliance Group Real Estate. “Many times, people don’t have a budget and don’t understand how much all of their monthly expenses add up.”
2. Read your lease agreement carefully and follow the rules
Your lease provides details on more than your rent and security deposit. The lease also will specify things such as:
- How long your rental term is. “When a tenant signs a lease, they’re locking themselves into that obligation for the length of the lease, and there may be stiff financial penalties for breaking it early,” said Kevin Deselms, a Realtor with Re/Max Alliance. Most residential leases last a year, but if you aren’t sure you’ll stay put that long, ask potential landlords if they’d agree to a shorter term. “Many places will offer six-month leases, and some will allow tenants to pay rent on a month-to-month basis, which is ideal for people who aren’t sure how long they will want to stay there,” Deselms said.
- What the rules are for pets. Find out if pets are allowed and if an additional monthly cost or deposit is required. There also might be restrictions on what kinds of pets you can have, such as weight limits for dogs.
- What’s included with your apartment. Read the lease carefully to find out if parking or other amenities are included. You don’t want to be surprised to discover the gym is only for tenants who pay for a membership.
- Who else can live there. Are you allowed to sublet your apartment? Are there restrictions on guests or roommates? Read every detail of your lease carefully because you’ll be bound by the contract terms and could be evicted for violating them.
If you and your landlord agree to anything else, such as the landlord painting the walls before you move in, make sure you put it in writing. Otherwise, you have no leverage if the landlord doesn’t do what was promised.
3. Document damage to protect your security deposit
When you move into your apartment, you’ll almost always be required to put down a security deposit. This is to protect the landlord in case you cause damage, but you don’t want to lose the money without cause after you move out.
Bierbryer recommends doing a detailed walk-through with the landlord on move-in day.
“The walk-through is one of the best ways for renters to document the condition of each part of the unit. Nothing needs to be contentious, but a renter should note, with the landlord’s sign-off, that certain items may be a bit older or suboptimal,” Bierbryer said.
Photographic evidence also can go a long way toward resolving disputes. “Take out your smartphone and take pictures of the unit,” advised Aaron Bowman, a Realtor with Mazz Real Estate. “Take pictures of things that are broken, missing, or worn out so when you leave the apartment you can show it was in that condition when you took it over.”
4. Budget for essentials before move-in
Move-in day is exciting, but it quickly will become less fun if you discover you don’t have forks, a bed, or a place to sit.
“Most new renters are not prepared for how much they’ll need to buy when they move in,” Deselms said. “It can be costly getting set up in your new pad, so I’d advise making sure you’ve saved money for furniture and supplies. There’s a lot people take for granted when living with others, especially parents, and the amount of stuff they end up needing can be a surprise.”
If you’ve never had your own apartment, do a thorough inventory of what you’ll need to buy. If you can’t afford the essentials, a personal loan could help you start your new life. But don’t borrow more than you can afford for necessary items and pay off the loan as quickly as possible.
5. Buy renters insurance to protect your possessions
There’s one more thing you need to do as a new renter: Get covered under a renters insurance policy.
“Don’t forget the renters insurance,” Deselms advised. “Many property managers and landlords require it, but not all. Whether they do or not, I strongly recommend the modest monthly cost of a renters policy to protect your belongings.”
“Renters insurance will protect you in case there is ever a fire, flood, or theft,” Henderson said. “It’s a relatively inexpensive protection in case anything ever does happen. In many instances, the landlord is not responsible if a pipe were to break and flood the residence, which in turn would ruin your items.”
Being properly insured will give you peace of mind. Along with taking the other steps on this list, getting covered helps you ensure moving into a new apartment won’t damage your finances. You can enjoy your new home worry-free because you’ve been responsible about becoming a tenant.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000|
|6.26% – 14.87%1||$5,000 - $100,000|
|6.99% – 35.97%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|4.99% – 29.99%3||$10,000 - $35,000|
|5.99% – 18.99%4||$5,000 - $50,000|
|15.49% – 34.49%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|