By Jason Alderman : Maybe you’re a college student looking to rent your first apartment; or a downsizing homeowner reentering the rental market for the first time in decades. Whatever your situation, there are many precautions you should take before renting any property. The last thing you want is to be saddled with a 12-month lease you can’t afford or to be stuck in a neighborhood you’ve come to detest.
As one who’s been there, let me share a few tips for renting a home:
Before you even start looking, know how much you can afford to spend. Housing is the biggest monthly expense for most people so if you miscalculate what rent is affordable, your budget will suffer from the get-go. Besides rent, don’t forget such additional expenses as a security deposit, utilities, cable/satellite, Internet access, renters insurance, parking and laundry facilities and one-time move-in expenses like window treatments, appliances or rugs.
Scope out the neighborhood. Determine how safe you feel walking around, especially if you’ll be parking on the street. Come back to see if the neighborhood’s character changes at night or on the weekend. Also note the proximity to parks, schools, grocery stores, public transportation and busy commuter routes.
Thoroughly inspect each potential rental:
• Consider total useable space – sometimes a smaller unit with a well-designed floor plan is more desirable than a larger space with a poor layout.
• Use a tape measure to measure each room to determine whether your furniture will fit. Ensure there’s sufficient closet, cupboard and storage space.
• Look for safety features like deadbolts and peepholes on exterior doors, well-lit corridors, stairwells and parking structures, smoke detectors, fire extinguishers and bars or other security features on first-floor windows.
• In multi-unit buildings, note the condition of common areas – that’s a clue how attentive the owner/manager is regarding upkeep.
• Note the condition of appliances, plumbing fixtures, floors/carpeting, electrical outlets and switches, light fixtures, walls and windows. If you spot damaged or worn items, ask whether they’ll be replaced. If not, make sure they’re noted in the rental agreement.
• Check the water pressure and hot water quality.
• Check seals around doors, windows and vents; if leaky, they can boost utility bills.
• Look for evidence of previous water leaks and mold.
• Check for soundproofing, especially if there are adjoining apartments.
Once you find a suitable place, read the rental agreement carefully. Don’t hesitate to ask a lawyer or more experienced friend to review it. If not spelled out in the lease you may want to ask the landlord:
• How much is the security deposit and what are the requirements for getting a full refund?
• How are rent increases determined?
• What happens after the lease term ends? Often, it’ll convert to a month-to-month rental agreement where you can leave anytime with proper notice (usually 30 days).
• How many tenants are allowed?
• What are building policies for things like houseguests, noise curfews, maintenance and repairs, pest control, smoking, lost keys and pets?
• Can you sublet the unit before your lease expires?
And finally, be aware that many landlords check credit reports of potential tenants. Before you start looking, check your own credit report so there are no surprises. You can order one free report per year from each of the three major credit bureaus – Equifax, Experian and TransUnion. (Order through www.annualcreditreport.com; otherwise you’ll pay a small fee.)
Jason Alderman directs Visa’s financial education programs. To participate in a free, online Financial Literacy and Education Summit on April 17, 2013, go to www.practicalmoneyskills.com/summit2013