It’s not just buyers who are struggling in the current crazy housing market. Renters are finding it difficult to get into good places at reasonable prices, and others are having to rent for longer periods as they work to purchase a home. Because of the tight housing market, it can take some time for prospective first-time renters and those changing locations to find the right fit; and landlords are able to be more specific in the types of renters they accept. Here are some ways you can improve the odds of finding the perfect place, and things to watch for once you are in.

First time renters

Renting is typically the way most people find that first place of their own. There are ways you can prepare to help guarantee you’ll make an easy transition and save time and money. Make sure that you do your research first and have answers to the following questions:

1. What type of place best suits me/my family? Should you go with an apartment, condo, town home, or house? Maybe you want the amenities of a pool and workout room that could come with an apartment. Perhaps you want a yard without the yardwork that a condo provides? Or maybe you have a large pet or kids that need the backyard space of a home to run in. When deciding, you should choose a space where you can be comfortable for a few years at least.

2. Are there any hidden costs? Once you’re sure of the type of place you’d like, look for the ‘hidden’ costs and make sure you can cover those.

• If you rent a house how much will the heat and electricity be throughout the year for a building that size?
• If you go the condo route is there an HOA fee that will need to be paid monthly in addition to rent?
• What about the apartment, will there be enough parking for your needs? On-site laundry?
• Or, maybe you don’t need the amenities of a full community apartment and should find something less expensive with fewer perks?

Knowing what you’ll be spending after you sign the rental contract will save you stress and money down the road.

3. What about renter’s insurance? Renter’s insurance can be surprisingly inexpensive. Most car insurance companies also offer renters insurance at a discounted rate when added to your current plan. Call your agent and get quotes for renter’s insurance at a level to cover all of your goods should there be a break-in or fire. Plans typically start around $10-15/month for $10,000 coverage.

4. Does the landlord seem reasonable? A landlord can make or break your renting experience. Some are flexible and great to work with others are demanding, slow with repairs, and don’t care about issues between neighbors. Interview the landlord or management agent as you are viewing the property. If something feels wrong it probably is. You can also talk to neighbors and walk around the area during different times of day before you sign a contract.

5. Are you getting a good deal? Make sure you understand what places are renting for in the neighborhood you are looking in. You can try the big sites like rent.com to compare, but often those prices run higher than standard. You should also review the local classifieds and even posted rental signs as you drive around. Watch for unreasonable security deposits and payment requirements that have been tacked on, or amenities you don’t need. What happens if you have to move out early before the contract ends or if there is a problem with neighbors? Read the contract completely before you sign.

6. How about the community? There is nothing worse than moving into a nice place and finding out about the drunk neighbors, unreasonable HOA rules, or the high crime rate in the area until after it’s too late. Check local police websites for criminal statistics in the area if it appears to be a concern. Also learn your landlord’s policies for dealing with criminal problems. You should also consider how close you are to amenities like gas and groceries, community parks and recreation centers, easy access to work, and if you have children how the local schools rank.

Tips for all renters

Ready to go find that perfect place or moving to another area? Here are some great ideas to help the search and transition go smoothly in a competitive market.

1. Make sure you have all of your paperwork ready. Landlords like renters who are prepared. Have the following on hand:

• Completed application
• List of references
• Employer information
• Copies of pay stubs or W2’s
• Written references from previous landlords or colleagues
• Any other required items,
• A copy of your credit report. You can find that at annualcreditreport.com or you can get it from any of the three major bureaus.

2. Plan on a waiting period. It takes time to run an application with a credit and background check on rental applicants, so don’t be surprised if it is a while before you hear anything back. Some places maintain a waiting list that could take 3 months or more for an availability. Do your research and if you find a place you really like that fits your budget make sure you get added to their list asap. It’s also a good idea to make sure your current living arrangements can be flexible in case an opening falls through.

3. Do a walk through. Before you sign a contract be sure to walk through the rental with the landlord or management company rep. and record any existing damage or repairs that need to be made. A good landlord will have a move-in statement or checklist. Don’t be afraid to touch!

• Turn on the water taps,
• check the condition of the fridge and stove,
• flush the toilets and flip on lights.
• Check for mold around and under sinks.
• Review the condition of the carpets and flooring.
• Make sure the windows open and lock well.
• Make sure there is a deadbolt on outside doors.

4. Read the contract. Make sure that you understand the landlord’s policies for the following:

• How will they handle your security deposit and what they can deduct.
• What their timeline for repairs is.
• What their policy for entering your unit is and how much advanced notice they have to give before entering.
• What their eviction policy is.
• What your responsibility is for upkeep and repairs if any.
• Can you make changes like paint or put up permanent shelving, etc?

Be sure to compare their contract with state and local laws so that you understand what your rights are as a renter.

5. Keep communication open. Once you have signed the contract be sure to let the landlord know of any concerns you might have or repairs that need to be made as soon as possible. Make sure to keep all written correspondence in an easy-access location. Any oral contracts or agreements should be followed up in writing laying out an understanding especially if the landlord has been slow responding to concerns. If you make a request to the landlord always do it in writing and keep a copy for yourself.

6. Treat the place like you own it. Even though it’s only a rental you should take pride in the place that you live and take care of the premises.

• Don’t make any unauthorized changes to the building or the yard.
• Protect wood flooring with felt furniture pads.
• Keep your unit and yard clean and uncluttered.
• Don’t bug the landlord for minor issues. Take care of minor repairs like clogged drains or pest problems on your own.
• Plan to replace burned out lightbulbs, heater filters and batteries in smoke detectors.
• Pay your rent on time.

While normal wear and tear is expected, holes in the walls, ripped up carpets, major stains, sending foreign objects down the plumbing, and pet damage among other things will come out of your security deposit and can open you up to a civil lawsuit. Save stress and money by keeping things in good repair and protect your security deposit.

Resources for Renters:

• Federal Fair Housing Act: justice.gov
• Information on tenant rights
• Tenant rights by state
• Apartments.com – find available rentals
• SpareRoom (app for Apple or IOS) – Look for a roommate or room to rent
• Getting your security Deposit back
• Get to know your neighbors and community

FFEF is dedicated to helping people understand the value of money and saving for the future. If you would like to learn more, you can visit the tips and tricks area of our website. We also have a great program to help with budgeting, bill pay, and working with creditors to help you get and stay out of debt. Contact one of our friendly counselors today 877-789-4172  for more information. www.ffef.org