Renting an Apartment

Whether you're renting your first apartment or your tenth, it's a major decision. So, be sure to take some time to determine your wants and needs. Before you start looking, consider these 3 major factors:.

(1) PRICE How much can you afford to spend? How much is too much? One general rule of thumb: spend no more than 25% of your monthly gross income on rent. For example, if you earn $30,000 per year, or $2,500 per month, you shouldn't spend more than $625 per month on rent. Remember, the more you spend on rent, the less you'll have for other necessities and niceties.

(2) SIZE How much room will you need for your family and your possessions. Will you 500 square feet be enough or will you need 1000? Will a one-room efficiency be adequate or do you require a one, two or three bedroom apartment? 

(3) AMENITIES Determine what features you need or want. How important are amenities such as an in-home washer/dryer, a dishwasher, or an on-site fitness center and pool? Do you need security features such as an alarm system or a controlled-access public entry? 

Once you've made your determinations about price, size and amenities, then you can start looking. Ask friends or coworkers for ideas. Check the classified ads in your local and regional newspapers. Or, you can contact real estate agents or apartment-locating services. Real estate agents and apartment locating services usually charge a fee for their services. The fee is typically equal to one month's rent. Be sure to inquire about fees before agreeing to the service. 

Once you find an apartment that interests you, your next step is to check out if the neighborhood meets your requirements. Some questions you should ask include the following. Is it close to work? What's the school system like? Is transportation convenient? Is the neighborhood safe? 

If everything checks out to your liking, you have found the apartment of your dreams. Your landlord will ask you to sign a lease, which is a legally binding agreement between a landlord and tenant. A lease will include the following information.
  • Your name
  • The landlord's name
  • The address of the apartment
  • The amount of rent
  • The payment schedule and the term of lease (one year, two years, six months)
Before you sign a lease, make sure the apartment is free from damage or safety violations. Any damage or safety violations should be corrected before you move in and that any repairs or improvements to be made are recorded in the lease agreement.

Be sure to read your lease carefully before you sign it and understand exactly what repairs and services you can expect from your landlord. Laws governing landlord/tenant requirements and relationships vary from state to state. If you have a dispute with your landlord, contact your state rental or housing agency to find out what remedies may be available to you.

Additional Resources...

The Fair Housing Act HUD - Renter's Kit HUD - Fair Housing Booklet (pdf) Equal Credit Opportunity Credit and Your Consumer Rights Landlord Fair Credit Reporting Act Obligations

Featured Partner

Featured Education Partners inform the public about the opportunity to build a history of timely and consecutive rental payments, using the free PRBC service.