How to Rent an Apartment or House

The rental markets in many cities are cyclical: a few boom years with renters scrambling for any available studio followed by a glut in availability. In either scenario, the most desirable rental units are snapped up the quickest. Do your homework, then hit the pavement.

Instructions

Difficulty: Moderate

Conduct the search

1. Be prepared: Create a renter's re'sume' with your current and previous five addresses and landlord phone numbers, your employer and length of employment, your current salary and other income, personal references, among other information. Include a copy of your credit report (see How to Shop for a Mortgage, Step 5). You want to look as good on paper as possible to stand out from other applicants.
2. Look in the newspaper classifieds, apartment hunter publications, college campus bulletin boards, and online for available units to investigate. Ask friends about openings in their buildings.
3. Consider how much you can afford to pay. A good rule of thumb is no more than 30 percent of your take-home monthly income.
4. Enlist a rental agent to narrow your search. Depending on the market, this service may be free (paid for by landlords) or cost you a percentage of your rent when you land the apartment.
5. Turn to a roommate service if you're looking for cheaper space to share. Be clear what qualities you desire in a roommate, as well as types of people or habits you'd prefer to avoid, such as smokers.

Case the joint

6. Inspect the property carefully. If there's any damage, you not only want to ask that it be fixed, but don't want to be blamed for it later. Make sure such problem areas are addressed in a lease, either by your agreeing to live with it, or the landlord agreeing to fix it by a certain date.
7. Check out common walls (walls shared with adjoining apartments). The more walls in common, the greater the chance of noise from next door. Also consider a common entrance in terms of how much privacy you may want.
8. Ask about amenities such as enclosed parking or a garage, a yard, storage, laundry facilities, pool, tennis, gym or concierge services.

Negotiate the deal

9. If you find an apartment you love but is a stretch financially, ask if there are responsibilities you can take on to lower your rent, such as cutting the lawn, sweeping common areas or taking deliveries. Or if you find a great apartment but it lacks services such as utilities, laundry facilities, cable TV and Internet access, ask the landlord to throw some in at no charge. Many newer buildings will. Or offer to sign a longer-term lease or give a higher security deposit in exchange for more services.
10. Examine your lease in detail: How much notice is required prior to moving, how large a deposit you have to make, how much cleaning is required upon leaving to get your deposit back, and other provisions. Some agreements require first and last months' rent plus a security deposit--a significant chunk of change. Is the lease month to month, or a 6- or 12-month period?
11. Find out what kinds of cosmetic changes you can make, such as painting walls, or structural changes, such as adding shelving.
12. Ask for a lease with an option to buy if you'd be interested in purchasing the property down the line.

What to Look For:

• Sufficient space
• Privacy
• Any prior damage

Tips & Warnings

• If the building allows pets, don't be surprised if you have to pay additional damage security deposit.
• Get in writing how soon after you move out you will receive your security deposit. Some landlords drag their feet.
• If it's a large complex or a hot rental market, you may have to pay an application fee to be considered as a tenant.
• If you are relocating temporarily for business, investigate corporate housing, which is paid for by your employer. Check SpringStreet.com/corporate and similar sites for listings.
• See How to Obtain Renter's Insurance.
• Ask if your security deposit can be placed in an interest-bearing account so that you're at least earning money while your landlord holds it. Many states have specific laws about how security deposits are treated.
• In some cases, you can negotiate to have a percentage of your rental payment applied to a future down payment.
• If you feel a landlord is refusing to rent to you because of your age, ethnicity, sexual preference, or physical handicap, report it to the local housing office.