Renting can seem like quite a daunting task, especially if you’re doing it for the first time. Finding the right place, roommates, furnishings, bills… It can all be a very overwhelming experience, but don’t worry. Here at PropHub, we’ll equip you with the right tools and advice to ensure that your first rental experience (and the experiences after that) are as seamless as possible.
If you’re a first-time renter, take a look at our tips below:
1. Get your finances in order before applying for rentals.
Landlords will always carry out a ‘tenant screening’ exercise to ensure that they are moving in the best possible tenant. Part of this tenant screening exercise is a credit check to dig deeper into your financial background and spending habits. Generally, being approved for a rental application is much more likely when you have good credit history.
That said, if you’re renting for the first time, do ensure that you are tracking your spending, paying your bills on time, preventing unpaid accounts, and managing your debt-to-income ratio.
If a large majority of your monthly income is already committed, the potential landlord may think that you’ll have difficulty paying your rent on-time. This may result in a rejected rental application.
2. Consider your upfront costs as a renter.
If you’re a first-time renter, it can be very easy to forget about the upfront costs that may be required when you take up a new lease. As an example, many landlords would request that you produce one month’s rent upfront plus a security or damage deposit. This is especially true in larger cities where the rental market can be very competitive. For this reason, it’s important that you are well prepared financially in order to get the upper hand.
Make sure that you have a good understanding of the upfront costs required and when those costs need to be paid by.
3. Thoroughly read over your rental lease agreement before signing it!
While this tip may appear to be common sense, many tenants struggle with this! If you’re a first time renter, a lease can be quite a difficult document to understand. To avoid uncertainty and misunderstandings, be sure to have a detailed discussion with your landlord about the terms of the lease. It’s also worth asking a family member or friend to take a look at your lease, too, just in case you missed anything!
Some useful questions to consider include: How early can I terminate my lease, and would I be responsible for finding a replacement? Does rent include utilities? Do you require renters insurance? Do you allow pets?
4. Get renters insurance – period.
As a first-time renter, you may think that renters insurance is an unnecessary extra cost on top of everything you need to pay. And, you may think you’re already covered, because the landlord has property coverage. But renter beware: your landlord’s insurance does not cover such things as loss or damage to your personal belongings!
Renters insurance can cover a broad range of coverage, which includes liability, protection of your belongings, and even temporary living expenses. For instance, personal property coverage in renters insurance policies can cover electronics, clothing, furniture, jewelry, and other personal belongings you have in the rental. If there were an accident or incident, such as theft, your renters insurance can help pay for the losses. This may be true even when the incident occurs outside of the rental property itself (like when your car is broken into at the mall).
Renters insurance is often optional, but don’t let that dissuade you from purchasing it. It really is one of the best insurances you could carry. And, premiums are surprisingly affordable that you’ll regret not having it when bad luck finally comes knocking. Most experienced, long-term renters will tell you they don’t regret buying this coverage.
If you’d like to know more about renters insurance options, refer to Toggle (by Farmers) for more information.
5. Do a walkthrough of the rental property and document issues.
Once you have signed the lease and have your keys, it’s important to do a walkthrough of the property. Despite already seeing it online and through your initial viewing, the walkthrough is a bit more thorough and formal. This will allow you to identify and document in writing any issues or imperfections with the property such as markings, low water pressure, mold, or holes in walls/flooring. As a first time renter, it’s important to take notice of these things and ensure that they are reported and fixed. If you don’t pay close attention, you may become liable for these damages later on when you vacate the unit at the end of the lease!
If you’d like to make your rental journey as easy as possible, be sure to register free on PropHub to access our simple tenant solutions.