It’s time for independence! Renting your first apartment is a huge milestone, but experiencing lease terms and credit history checks as a first-time renter can quickly become overwhelming. When renting your first apartment, there are many details to keep track of — from a security deposit, if you need a co-signer, and renters insurance to a pet deposit and how this fits into your monthly expenses. Keep reading for what to know when looking for that perfect first apartment with everything on your wish list.
What to know when looking for your first apartment
Preparation is key when renting for the first time. There are many things to consider when selecting from many city apartment communities. Let’s talk about what to look for.
1. Your budget
Put together your monthly expenses before looking for apartments. Take into account any bills, student loans and car payments you may have and look at them against your current monthly income. Most financial experts recommend not spending more than 30 percent of pre-tax income on monthly rent.
When approaching apartment complexes for your search, stick to your budget. This will help you stay on top of your living expenses and comfortably afford your monthly rent. If you need a co-signer, let them know early in the process.
2. Property manager quality may vary
It’s important to know to take your time when looking for your first apartment. Not all property managers and apartment complexes are the same. Before booking an appointment, look at reviews online, drive by the location at night to check out the building and take note of the amenities.
You’ll want to ask many questions to your potential landlord to see how they approach community management, how fast they address maintenance requests and the quality of the amenities. Stay alert for any red flags or any claims in the marketing collateral.
3. Upfront costs of a new apartment
It’s a common misconception that renting an apartment only requires you to pay rent. There are actually several costs associated with renting an apartment. Most apartments require a credit check, a security deposit, bank statements, first and last month’s rent and an application fee.
Depending on your credit history, the property owner may need someone to co-sign the lease with you. You should also account for the renters insurance required to live in the complex.
4. What about your furry friend?
Check with the property manager to see if they allow pets. If you have three cats and the lease only allows two, this complex is not a good fit for you. It’s important to read the lease carefully for these types of clauses.
If your apartment doesn’t accept puppy pals, consider getting assorted fish, as they usually don’t count toward the pet policy.
5. Ongoing costs for an apartment
Aside from renters insurance, you’ll need to account for monthly costs on top of your rent. Make sure you can afford the following:
- Electricity
- Gas
- Internet and cable
- Water, sewer and trash
- Groceries
- Pet rent
- Amenities fee
- Administrative fee
These fees are not all-inclusive, but they equal several hundred dollars that you need to consider within your monthly budget. Utilities and groceries always vary due to inflation, so make sure to place a buffer for any increases in costs.
When visiting an apartment, ask the landlord for an estimate on utilities and additional rent costs to get an idea.
6. Decide if you need a roommate
You may need to choose a studio versus a one-bedroom with extra space, but it’s important to stick to what you can afford. Or, consider looking for a compatible roommate who can split costs with you.
Sharing an apartment with a roommate can get complicated if you’re not a match, but if you are, it’s an excellent way to save some money and split cleaning chores. Whether you find a stranger or a good friend, make sure you have a roommate agreement before moving in. That’s definitely something to know when looking for your first apartment.
7. Location
Your dream apartment must be close to your work and your favorite places. According to the U.S. Census Bureau, U.S. residents spent 27.6 minutes commuting one way in 2019. Find a nice neighborhood that appeals to your lifestyle. For example, if you’re outdoorsy, you might want to find a neighborhood with green spaces and parks.
Before you fill out that rental application, look at the side-by-side costs of housing and transportation. A unit closer to work is possibly more expensive but financially smarter in the long run if transportation costs increase exponentially from a cheaper, farther away unit.
8. Public transportation access
In cities with robust public transportation systems, living near it is a nice perk. Check out bus lines or train stations near the apartments you visit, especially if you don’t have a car.
Another thing to keep in mind? Bike and walk scores. You may not live near public transit, but if you can easily bike or walk somewhere, that’s something to consider.
9. Building floor plan
Once you decide on your neighborhood, pick several buildings to visit. We recommend around four or five complexes. You must see the space in real life (versus a virtual tour on their website) to see the actual state of the apartment.
Before signing a lease, review the building’s floor plans to pick the best one for your lifestyle. For example, you may prefer a top-floor unit away from the courtyard for security reasons.
10. Understand the terms of your lease
Leases come in many different shapes and forms. Most property managers have a standard 12-month agreement. However, others may offer a rent-controlled unit (meaning they can’t hike up the price), month-to-month and extended leases for lower per-month rent.
You must read the legal document carefully to understand your responsibility, any penalty clauses, and what the landlord is responsible for. This is also a great time to clarify utility costs, renters insurance requirements and pet rent.
What should I expect from my first apartment?
You’ve thought about the details of your financial situation. You’ve also made some overall choices about what you’re looking for.
Is it hard getting the first apartment?
It depends! Your experience may vary based on your rental, work history and credit. You will need a photo ID, bring proof that you can cover the cost of the apartment and have good references.
If you’re not having much luck with apartment buildings, reach out to your parents or family member to cosign for you. If you don’t pay rent on time, they will be responsible for it.
How much rent should you save for your first apartment?
Most financial experts recommend staying within 30 percent of your gross monthly income (pre-tax). For example, if you make $50,000 a year, your maximum rent should stay at $1,250 per month.
However, with inflation and demand, you’ll have to use caution with your budget as the nationwide average rent has surpassed $2,000 a month for the first time.
You can use this rent calculator to see the average rent in your city and how much you can afford based on your annual household income.
After your apartment search
Exciting — you found your dream apartment. It’s time for all the details about moving, like picking a move-in date and booking the movers.
Start purging
Whether coming from your parent’s home or a college dorm, start going through all of your possessions early. While it’s hard to part with some stuff, clutter will make your apartment feel smaller and increase your moving costs.
Donate or sell anything that you don’t keep.
Pick up packing materials
Once you’ve sorted your belongings, it’s time to pick up boxes, packing paper, bubble wrap, permanent markers and packing tape. Label every box with the room it goes in and its contents to help the movers work more efficiently.
Book the movers
It’s OK if your budget only allows for DIY moving with friends and pizza at the end. Just don’t forget to book the moving truck.
But if you can pay for professional movers, start looking as soon as you know your move-in date. Get a few quotes and referrals from friends before putting down a deposit.
Time to kick off your apartment hunt
What to know when looking for your first apartment as a first-time renter can quickly become overwhelming — the amount of paperwork alone! Do your due diligence and take your time until you find the best location for you.
With your checklist ready to go, keep track of the cost, amenities offered, how much space you need, lease terms and, most importantly, what you can afford.