3 Tips to Help With Renting an Apartment for the First Time
Posted on: 28 June 2021
Are you preparing to move out of your parent's home and get your own apartment? This can be a very big deal, and most people are often left unprepared for what to expect. Here are a few tips that will help you with renting your first apartment.
Save Up For A Security Deposit
It's common that you need to provide some sort of security deposit to rent an apartment, which is typically equivalent to one month of rent. This is to help pay for damages caused to the apartment, or cover your last month of rent if you are unable to pay for it and get evicted. Don't let the security deposit catch you off guard by saving up for it early. You'll eventually get the money back if you're a good renter, so consider it part of your rainy day fund.
Prepare For A Credit History Check
Landlords screen tenants by performing a credit check, which lets them know your history of paying bills and if you owe debts to others. You should prepare for this in a couple of ways. If you do not have a credit score, it helps to build your credit history by getting a credit card a few months in advance and using it for all your purchases. You can then pay off the card in full each month to show that you're capable of paying off the balance in full.
If you do not have a credit history, then you can often use a roommate's credit history to pass a credit check. You'll usually be fine as long as one person has a credit history. The other option is to use a cosigner, like your parents, who essentially takes on the responsibility if you're unable to pay your monthly rent.
Know How Much You Should Pay In Rent
You'll likely be wondering how much you should be paying in rent each month so that you do not rent a place that is above your means. Consider using the 50/30/20 rule to make sure that rent falls into your budget. It states that only 50% of your income should be used for fixed monthly expenses that you need to live. This includes health insurance, auto payment, rent, and utilities. The sum of all these should not exceed half your income. When you total up your existing monthly fixed expenses, see what is left to determine what is a fair amount of money to set aside for rent.
Keep these tips in mind as you look at two-bedroom apartments.
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