So You Want to Rent an Apartment Someday?

So You Want To Rent An Apartment Someday?

By Ed Fingerling

Living on your own for the first time is a special time in life. Finding your first apartment can be an intimidating and overwhelming mission. There are so many questions to consider: where do I want to live? How much rent can I afford? Do I want roommates? Each one of these major decisions requires careful consideration.

There are so many exciting possibilities out there that finding your first apartment can be fun, too. In this article, we'll help you do your apartment-hunting homework so you can hit the pavement with confidence!

Get Ready

Every potential landlord will want to do a background check, so you'll want to stand out from other applicants by looking as good on paper as possible. Create a renter's resume, starting with your current address (even if it's your parent's house), your current and previous jobs, length of each employment, current salary and extra income, and professional and personal references. Include a copy of your credit report (see "How to Handle Your First Credit Card" in the "Pennies" section on gibberless.com). http://www.gibberless.com/id104.html

To Roommate or Not to Roommate

Decide if you want (or need) a roommate. Living with a roommate is good because if there are two (or more) people to split the rent, you can usually afford a bigger apartment. It can also be cheaper to live with a roommate, because there are two or more people to split the utilities and other bills.

However, sometimes living with a roommate can be problematic; there can be a serious lack of privacy, their problems and issues can become your problems and issues, and they may not honor their financial or cleaning obligations. In other words, having a roommate means there is a great potential for disputes. Close, life-long friends often destroy their relationships by living together. Just because you've been great buds does not mean you'll make great roommates. Carefully consider whether you can live with a roommate before you embark on your apartment search. (See "Roommates--You Have to Learn to Live with People" in the "People" section on gibberless.com). http://www.gibberless.com/id105.html

Budget and Prioritize

Before you can begin looking for your apartment, you must figure out how much rent you can afford to pay. It's important to balance how much you can afford to spend with how big and beautiful you want your apartment to be. A good realtor would recommend that you spend no more than one third of your take-home, after-tax monthly income on rent.

You (and your roommate) must prioritize your apartment needs and wants. This includes location, size, how many rooms, and closeness to subway, bus stop, park, gym, or shopping mall. Amenities raise the price of rent, so you must also decide what kind of frills you desire, such as a doorman, elevator, parking lot, dishwasher, etc.

Location, Location, Location

Your next step is to figure out where you want to live. If you're new to a city or area, take time to research and explore different neighborhoods. If you've grown up in the area and think you know it all about the place, it's still a good idea to check out new neighborhoods and areas-you might be pleasantly surprised at what you can get for your money in an up-and-coming neighborhood.

Figure out what kind of scene will make you happy. Do parks and green areas matter to you? Do you want to live in a family-oriented neighborhood, or one with restaurants, cafes, and shops that draw young professionals?

After visiting several neighborhoods, look at the local rental listings of that area to see what kind of apartment you can get with the amount of money you can afford to spend on rent.

Start Looking

Now that you've completed all your prep work and research, you're finally ready to start answering listings ads and viewing prospective apartments.

Inspect the apartment carefully, and bring along a notepad, tape measure, and digital camera, so you can refer to your notes, measurements, and photos later.

Make sure the apartment is in good working order. If there is any damage to the apartment, be sure the landlord agrees, in writing, to fix the damage, either before you move in, or by a certain date.

Signing the Lease

Once you've found the perfect apartment, you're ready to begin the process of signing the lease. In big cities such as New York, apartment hunting can be competitive, and good apartments can be gone in one day. If you're looking for an apartment in a big, competitive city, you'll need to be aggressive; be prepared to submit your application, or sign the lease, in the same day. When viewing an apartment, be sure to take with you:
Your "renter's resume"
Your checkbook
Two recent bank statements
Last year's tax return (first page and the signature page)
Two recent pay stubs
A letter of employment from your employer
A letter of reference from a previous landlord or their contact information

If you've really found the apartment you want, you must start the process of signing the lease. It's really important to stay focused during this last part of the process. You are about to part with a significant sum of money, and put your signature on a legal document that binds you to its terms, which is difficult and expensive to be released from if you decide you made a mistake and can't afford to live in this apartment. Do not let your burning desire for this apartment overcome your poise, intelligence and common sense.

Here are the steps involved in signing the lease:

Filling out the application (if necessary-not all landlords require an application) and paying the application fee.
Give your landlord permission to perform a credit check (you can present this to the landlord immediately if you have obtained a credit report for your renter's resume).
Review the lease. This document protects both you and the landlord, so be sure to read all the fine print (or have a real estate attorney look at it for you). Make sure that your name, address of apartment, amount of security deposit and rent, and start and end dates of the lease, and any additional clauses, such as pet policy, consequences of late rent payment, policy of repairs, are all stated in the lease.

Most landlords will want the first month's rent and security deposit payment to be made with cash or a certified check or money order. You won't be able to write a personal check or pay on credit and then add money to your account. Make sure you have enough withdrawable money in your bank account to cover these initial payments.

After you pay the rent and security deposit, and sign the lease, the landlord will hand you the keys to the apartment. Congratulations, you've got yourself your first apartment!