Moving into your first rental can be daunting and exciting. On one hand, you get to have your own space, but on the other, you have to worry about things that were once foreign concepts like HVAC system inspections, or watching out for rental scams. We’ve put together the perfect guide for first-time renters that covers everything from how to create a realistic budget, to what you should consider during the house search process. We’ll also talk about some of the ways you can spot rental red flags so read along this article.
Establishing a Realistic Budget
Consider Upfront Costs
Make a list of upfront costs you have to pay to secure your tenancy. It’s common for first-time renters to only consider the first month’s rent, and maybe the security deposit which often totals one or two month’s worth of rent. However, other expenses you’ll also have to account for include the application fee you pay to your landlord or real estate agent for processing your application. Some rentals also come with a mandatory broker’s fee, which is a percent of your annual rent.
Recurring Costs
Don’t get blindsided by recurring costs. After moving into your new place, there are other expenses you have to pay out of pocket to keep your stay conducive. Depending on your lease agreement, you may be responsible for paying utilities like electricity, gas, water, and internet. Some landlords also make it compulsory to buy renter’s insurance to protect your belongings against theft or fire. You can discuss with a reliable rental property manager in Harford County any questions you have as a first-time renter.
Considerations when Choosing the Right Neighborhood
Proximity
Reduce your commute time by looking for neighborhoods that are close to your home or office. It also applies to other amenities like restaurants, bars, and pharmacies. You’ll save yourself a lot of money in the long run on gas if you can grab a bite to eat within 5 minutes, versus having to drive 15 minutes to the closest store just for batteries.
Transportation
If you rely on public transportation, ensure transit options like bus stops, and train stations within walking distance. The last thing you want is to end up in a neighborhood that can make commuting more difficult. Even if you have a car, ensure there is convenient access to highways that easily connect you to other parts of the city.
Safety and Noise Levels
Opt for neighborhoods that prioritize your safety and comfort. After all, what is the point of living close to work if you’re constantly on edge around every corner, or can’t get a wink of sleep because your neighbor’s music is too loud? Save yourself the headache by researching local crime statistics in the areas you’re considering, and ask if the neighborhood has any HOA policies on quiet times or noise disturbances.
In the same way, you're investigating a potential place to live, you should also expect the homeowner to look into you. A rental history report helps landlords assess if a tenant is qualified to rent, and can affect whether they accept your application or not.
3 Warning Signs of a Possible Rental Scam
Requesting Payment Before the Property Viewing
Avoid homeowners who insist on you paying rent before you can even see the property. Unless you can’t help it because you live in a different state or country, it would be best to schedule a physical viewing just to confirm the property conditions are the same as in the photos and videos you’ve seen. Scammers are notorious for putting pressure on potential tenants to pay quickly so they can ghost you, so ensure you take your time and don’t allow anyone to rush you into committing.
Asking for Suspiciously Low Rent
Watch out for deals that seem way too good to be true. There’s no denying that if you’re lucky, you could get a rental at a steal, but if the homeowner is asking for half the expected asking price, it could be a scam. Crashing rent prices is a common tactic to attract renters working with a tight budget to part with their hard-earned money, only to realize it was all an illusion.
Providing Fake Contact Information
Double-check the landlord’s contact and property information online. Sometimes scammers steal images of real properties and create fake listings to lure unsuspecting renters into paying rent without the homeowner’s knowledge. If they avoid giving specifics about the property’s address or insist on communicating via untraceable methods, you could be dealt with by a fake listing.
Conclusion
Land your first rental without breaking the bank by creating a realistic budget. Most first-time tenants remember upfront costs like rent and your security deposit but don’t forget to account for recurring expenses like utilities and insurance. After that, narrow down your choices by opting for neighborhoods that shorten your commute time by being close to your office and having accessible transport systems. Also, look for areas with reasonable rules on noise and safety. If an offer looks like it’s too good to be true, or the homeowner is trying to pressure you into paying, you could be walking into a scam. So calm down, and verify that the homeowner’s contact and property details are correct before signing your first lease.
