When you decide to rent for the first time, it can be a daunting experience.
You’ll be living on your own without your parents to fall back on. Your monthly salary is all that stands between you and the roof over your head.
It’s very important therefore, that you plan thoroughly before you start viewing. You have to get into the proper state of mind.
To do this, there are five things you need to consider;
1. Need/want:
You’ll have to be brutally honest with yourself over the things you need and the things you want. For example, if you don’t drive, you’ll need to find a place close to your work or at least within reasonable distance to public transport.
What you don’t need would be a washing machine or a swimming pool. Make a list and separate them into ‘Need and ‘Want’. If your budget can accommodate such wants however, then by all means, go ahead but this brings us to the second point.
2. Budget:
Pen down all of your current monthly expenses such as food, memberships, credit card bills, parking fees, insurance, phone bills and so on. Once you’ve established how much money you spend per month, the remainder is the amount you have to spend on renting.
What you can afford for rent is roughly 25-30% of your income, provided that percentage is not currently being used to pay for your needs/wants.
3. Deposits:
Even if you have enough left over cash to comfortably afford the monthly rent, you need to consider additional fees such as electricity and internet. It is ideal if the landlord provides all of this but always plan for a contingency. You will be living independently, so your accumulative costs will increase.
4. Visit:
If you’ve sorted out your finances and have a comfortably amount to start with, then it’s time to start checking out apartments. Visit several before deciding. Make sure the apartment you ultimately choose satisfies most of the things on your ‘Need’ list. Do not under any circumstance, sign a lease before you visit the apartments!
5. Lease length:
It will be much easier for you if you have a predetermined lease length that allows you to plan your finances. However, make sure that there is an option to renew after the lease expires. Negotiate to include a ‘Diplomatic Clause’ in the event you need to terminate the lease and also sign the Tenancy Agreement. This will protect you from sudden evictions should the landlord sell the property to someone else during your tenure.
The rules may differ in every state you are in, so it is advisable to get the help of a verified estate agent. Points 1-3 however, relate directly to you and you have to be absolutely sure that you’re financially able to rent a place for an extended period of time.
Take your time and plan – renting may be exciting but it’s not worth jumping into on a whim.
