How to rent your first apartment
You’ve decided to find the ideal, affordable apartment to lease. Now what?
Well, despite being up against an average of 2,600 new renters signing an apartment lease daily in the US, being approved for an apartment doesn’t have to be difficult as long as you understand the process and the specific apartment requirements for your home.
Before you can formally apply for the home, sign a lease agreement and move in, you’ll need to complete several steps.
Remember, each apartment owner or operator may have their own specific requirements, so these steps are subject to change.
Budget and Research
- Determine your budget: Calculate how much you can afford for rent, utilities, and other expenses.
- Research neighborhoods: Consider factors like safety, proximity to work/school, and amenities.
Search for Apartments
- Use www.livebh.com, real estate agents, or local listings to find available apartments.
- Visit potential apartment communities to assess their condition and suitability. Consider the surrounding neighborhood, commuting times, and transportation options.
Gather Necessary Documents
- Photo ID: Driver’s license, passport, or state ID.
- Proof of income: Bring your tax returns, two to three pay stubs, and two to three months’ worth of bank statements to include in your application. This will help speed up the apartment rental process.
- Rental history: If applicable, contact previous landlords for references.
- Employment details, previous addresses (if applicable), whether you are bringing pets (if applicable), and references.
- References from previous landlords are helpful to verify your rental history and trustworthiness as a prospective tenant. This helps the apartment owner/operator establish how responsible you are. They might even call your previous landlord to ask about your reliability and ability to pay rent on time.
Submit Application
- Complete the rental application form provided by the owner or property management company. In many cases, you can this online. You must be 18 when renting an apartment.
- Pay any required application fees. This non-refundable application fee runs from $30-50. This fee covers the costs of screening renters, including background and credit checks.
- During times when apartment demand is low, some communities might waive the application fee to drive more interest in their available units.
- Once you apply for an apartment, waiting for approval takes 24-72 hours.
Credit and Background Checks
- Owners often run credit checks. Ensure your credit report is accurate.
- The minimum credit score required to rent an apartment can vary based on factors in the local rental market and the type of unit you’re interested in. However, here are some general guidelines.
- Low-end units: Typically require a credit score of around 597.
- Mid-level units: Might need a score of approximately 626.
- High-end or luxury accommodations: Often demand a higher credit score, around 669.
- Remember that these are averages, and individual owners or property management companies may have their own thresholds. While a credit score of 670 is generally preferred, other aspects of your financial stability and documentation (such as proof of income and references) also play a role in the approval process.
- If your income (or credit score) isn’t high enough to secure the apartment or you have an unstable income, consider asking a trusted person (such as a family member) to be your co-signer. A guarantor or co-signer is someone who signs the lease with you and is legally required to pay your rent if you fail to do so.
- If you are renting your first apartment and don’t have previous rental history, bringing personal references from a boss or superior that speak to your trustworthiness and reliability can be helpful.
- Background checks are conducted to verify an applicant’s criminal history. Disclose if there’s anything noteworthy, such as a previous arrest, before they run the background check.
Review Lease Agreement
- A lease term refers to the duration specified in a rental lease agreement during which you have the legal right to occupy the rental property. It designates the minimum amount of time you’re expected to remain in the same rental unit. Lease terms can vary, such as being month-to-month with a specific end date or a year-long lease with an automatic renewal. This is a crucial component that outlines how long the lease will be in effect and provides clarity on termination details.
- Understand the terms, including rent amount, lease duration, security deposit, and rules, and clarify any questions with the owner or an attorney.
Sign Lease
- If approved, make sure you again read through everything and understand all the details. Remember, a lease is a legally binding document, so make sure you note any existing damage or issues in the apartment, so you’re not held liable when you move out.
- Pay the security deposit and first month’s rent. A security deposit is a sum that a new resident pays to a landlord or property management company before moving in. Security deposits provide landlords insurance for tenant damage beyond normal wear-and-tear, usually equating to one to three months of rent.
Move-In Preparation
- Schedule move-in date and time. Closely inspect the home for any holes in the walls, floor scuffs, damage to the windows or major appliances, and any noticeable exterior wear. Document everything carefully with a camera and inform your owner or management company as soon as possible.
- Arrange for utilities (electricity, water, Internet, etc.) to be set-up/connected.
- If you choose, hire movers, and arrange for moving boxes and other materials.
There are few things better than moving into a new home. Now that you’ve worked through the process, from research to document gathering, to application, credit checks and lease review – you are ready to enjoy your new place!