Renting your first apartment is a huge milestone. However, if you are not sure about the process, it can also be daunting. If you are under 25 and are looking for your first apartment, there are 8 steps you should take.
1. Determine your budget
First, you should set your budget before you start looking for an apartment. Shrinking down what you can afford before searching for an apartment will help you make sure you don’t overspending. You should not spend more than 30% of your total monthly income on rent. Of course, this number may vary depending on where you are and how you want to live. If your area is very expensive, you may want to consider renting it with your roommate to make it more affordable.
2. Save first, last and margin
Especially if this is your first time renting a home, most landlords will need the first and last month’s rent as well as a margin. For your first apartment, a one-month rent is expected to be paid to guarantee. This may vary depending on your state law and the property you choose.
3. Work according to your credit score
If you have not established a credit history, you should work on this before signing the first apartment lease. A better credit score will help you secure your lease and can help you save margin. If you don’t have a credit history, you can provide additional information such as compensation stubs.
4. Ensure co-signer
Similarly, if you don’t have a stable credit score as a first-time renter, you may need to use a co-signer in your lease. This should be someone with financial status like a family member or close friend. Ultimately, it should be someone you trust.
5. Collect the correct files
Prepare to give your landlord a variety of documents to get approval for your first apartment. Some typical documents include your ID card, social security number or card, references, rental insurance certificate, bank statement and compensation stub, or if you have a new job, please write. Most landlords will also withdraw your credit report and conduct background checks.
6. Understand your lease
Do you understand the responsibilities detailed in the lease? You will need to read the lease carefully and pay attention to things like the lease term, who will be responsible for the repair if you move out, etc. You also need to record any damage to the apartment before moving in so that you are more likely to restore your entire deposit when you move out.
7. Set up a utility
Once you have signed the lease to your first apartment, make sure to set up a utility in your name. This includes water, gas and electricity. Other services considered for setting up are home internet and cable.
8. Become a good renter
If you decide to move out of your first apartment, your landlord can provide you with a reference for your next apartment. Having said that, try to be a good tenant so you can build a positive rental history. Make sure you pay on time, respect community rules and take care of your apartment. In the long run, this will help you save money on your future rentals.
How do you store your first apartment? Let us know in the comments.
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