When considering renting your first apartment, it’s natural to feel both excited and nervous. It’s understandable to feel this way, as there are many factors to consider, from finding the right place to ensuring you can afford it and everything in between.
You can make apartment hunting easier by planning key aspects in advance. By following these basic steps now, you could soon find and rent your first apartment like a pro.
Determining your rent budget
Before you start your apartment search, you need to figure out how much you can afford. To calculate this, you must establish a monthly budget listing your income and expenses. Once that’s done, you can figure out how much rent you can afford.
A practical guideline is to limit your rent to around 30% of your after-tax income. Compute the exact dollar amount. Take a moment to examine your budget. If there isn’t enough money left after other expenses to afford rent, you might need to take further steps before starting your apartment search. These options might include finding a roommate to share the rent, cutting down on other expenses, or finding ways to increase your income.
Common upfront costs when renting an apartment
Figuring out your monthly rent budget is a vital first step, but you also need to be aware of other costs. Typically, you’ll need to pay a security deposit upfront, in addition to the first month’s rent. The security deposit may vary in amount, but it is frequently the same as the monthly rent.
You may also face other deposits and fees, like credit check fees, utility deposits, and additional expenses. It’s important to find out if utilities are covered by the rent or if you’ll need to pay for them yourself.
If utilities aren’t included, you’ll need sufficient funds to establish basic services. To make it easy, plan to save at least 2 – 3 months’ rent to cover your needs when moving into your first apartment.
Prepare for the application process
Once your finances are settled, you can move on to searching and applying for your first apartment. Having your application materials ready in advance will enable you to act quickly when you find a place you like. You’ll need to have a list of documents and information ready to rent an apartment.
While the list may vary by location, it’s recommended to have the following available:
- Your last two pay stubs or a bank statement
- Social security number
- Driver’s license or state ID
- Credit report
- Contact information for at least two references
Understand your lease agreement
As you progress through the rental process, carefully reviewing your lease documents, especially the fine print, is crucial. A lease is a binding contract, and signing it commits you to everything it includes. Knowing your responsibilities, what your landlord is obligated to provide, and how maintenance and repairs are handled will give you peace of mind. Be sure to verify that the rental payment, security deposit, and other amounts are accurate.
Lastly, review the lease for any unexpected or unusual rules or clauses to make sure you’re comfortable following them. If you have any questions about your lease, ask someone you trust for advice. The better informed you are about the apartment, neighborhood, and landlord before renting, the better off you’ll be.
Are you in the market for your first rental home in Northbrook or nearby? Get in touch with Real Property Management Chicago Group today! Browse available rentals online for more information and to schedule a viewing.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
