What to know before renting an apartment?
We talked about how rent is the biggest expenditure generally and if possible can you pay with a credit card to get some form of discount in terms of points and cash back. Now I would like to outline what to be aware of before you end up finalizing the apartment/house.
First thing to mention is that we have automatically assumed you have decided to rent rather than buy a property. I have only been in temporary situations and not been in a location where I have known I will be able to live long enough to consider buying a property. For that reason I would not know best. If anyone can give me a good reference to educate myself that would be great. So moving on, lets talk about some of the things to be aware of, and that might impact you financially.
Renters Insurance
The apartment complex that I moved into in New Jersey required me to have Renters Insurance. It made it simple, and it meant I didn’t have to go through the painful process of deciding whether I needed it or not (its best to have it…paying for the convenience!) I had to pay (with my UK credit card) around $150 for the year I was in this property and they took into account how many belongings and their worth. I was advised by the leasing office to go with Assurant. The have been fairly reliable in terms of payment, and touch wood, I have never needed them for anything. Always ask your leasing office for recommendations and see if your employer can give any recommendations including discounts!
Guarantor
You need a guarantor, either a family member, or if you have an organization as your employer, they can help. I didn’t;t know that my employer could act as this initially, so I asked for help from a guarantor in Canada (they do allow it in America, but it is a hassle), luckily I soon found out that my employer could help, and the process was very simple. Always ask your employer to try and help with this.
Deposit: Come prepared!
You will need to pay a deposit, usually about 1-2 months worth of rent. For mw it was like $1800, so out of the $8000 dollars I brought with me, nearly a quarter went into the deposit. Another reason to come prepared with money. Then it is generally expected that you pay your first rent up front also. Another $1200. So that’s $3000 up front used for accommodation. This is usually paid by a bank cheque, so setting up a bank account is important in the background to be arranged.
Amenities/Utility fees
There are some added costs that you may need to be aware of. Every apartment complex I visited was a little different. All expected electricity to be paid for in a separate bill. So I had to call PSEG, the electricity supply company, and set up forms of payment to them. I did not have to pay for water or heating, AC came under electricity though. There was a gym, but you had to pay extra for that (it wasn’t a concern at the time, I never paid it for 3 years, but I used the gym at work).Facilities such as washing machines and dryers were on site, and used a card system to maintain a balance.
Another thing to mention is that homes will be described as furnished or unfurnished. Most of the time they are unfurnished. There will be a refrigerator and a microwave/oven in the apartment, as well as bathroom facilities, but otherwise you are on your own. So be prepared to pay for furniture. I had a kind relative who wanted to get rid of furniture so I paid the moving costs and got 2 twin mattresses, table, chairs and other kitchen supplies. Remember if you are only temporarily living there, you will need to transport those new items with you wherever you go. So try to live “light” in that time period.
Summary
There you have some basic tips before you begin rental hunting. Be proactive and personable by networking with residents who live at these prospective places already, as they will be able to give you the best advice.
Enjoy your weekend, Penny Pinchers!
Featured Photo by Brandon Griggs on Unsplash