In today’s world, people consider renting a house or apartment a better option than buying one. The economy in real estate is slowly shifting, and people no longer see the point of investing in a house that was previously considered an asset that appreciates in value.
Furthermore, buying a house has more hassles, such as maintenance fees, property taxes, mortgage insurance, and more. You can skip all this if you simply rent a house instead of buying one. Moreover, not everyone has the ability to afford a complete house, especially young people who have just begun earning. So the process of renting comes in handy in such cases.
Now, if you’re new to the renting process and don’t know the start and end of it, look no further. In this article, we take you through the complete process. We begin with helping you understand your requirements, how to formulate and foresee the budget, the different things to look for, the red flags you must be aware of, and more. Without further ado, let’s get right into it.
Knowing Your Requirements
Are you a family of two? Do you have any pets like cats or dogs? How many kids do you have? What kind of amenities do you need? Well, all these questions and more must be answered while trying to figure out what your perfect house must be like.
So start with making a list of things you need in the house. Once your needs and necessities are out of the way, you can start looking at the luxuries you’ll want in the house. It can be anything from pools, a specific type of lawn, amenities in the house, and a whole lot more.
However, you also need to make sure that your list is realistic and doesn’t become too expensive for you. As a result, the next step is to estimate the budget. Ideally, some people would prefer to calculate their budget first so that they don’t overshoot it. If you’re a pragmatist like them, feel free to calculate that first.
Calculating the Budget
Calculating a budget can be tedious, and one might go all over the place while doing so. Usually, start with the basics. Ensure that your rent is not more than 30% of the money you make. After all, spending more on the rent than that would be inefficient, and you won’t be able to meet your other daily requirements.
Now, you know the ballpark value that you can spend. But that doesn’t mean you spend all of it. You know the kind of house you want based on the list you made in the previous step. Whether it’s a studio apartment, a bungalow, a two-story penthouse, or something else.
Even though you know the kind of home you want, the rates for different types can vary by a large margin. This usually depends on the location, the significance of the place, and how premium the place is. So, you can check out online forums such as Zillow and Redfin to get a rough idea about the prices for the home while also knowing everything about it.
Besides the rent of the house, you also need to take into account other expenses. These include the cost of moving, security deposits, renter’s insurance, utility costs such as heaters, fees for your pets, and a few others. Once you have done the math for all these variables, you have your total.
Check Your Credit Score
In countries such as America, your credit score is quite important. It represents a sort of trust factor; when you’re renting a new house, this factor inevitably comes into play. People can buy or rent places without any score or a minimal score, but it comes with a few unsaid terms and conditions.
For instance, you might have to pay the owner a higher amount up front. Alternatively, you’ll need to have a guarantor to be able to rent the place. So, check your credit score and try to use it to your advantage if you have a high one. If you don’t, you can still be aware and try to compensate for it with other gestures that represent you and can put the owner at ease.
Find Potential Homes
Finding homes can sometimes be as easy, but sometimes it can get complex too. But don’t worry, we’ve got you covered. First, understand the kind of neighborhood you want the house in.
Different localities differ in their atmosphere, and you might have a preference too. Whether you want to live on a bustling street or want something more quiet and peaceful. Besides this, you also need to determine how easily accessible the stores, restaurants, schools, and other places you will be going to on a regular basis are.
Based on all this, you can list potential homes you’d like to see in person. Always have 3 to 5 on your list because there might be several circumstances due to which you might not get the house.
Be Alert About the Red Flags
It is important to always be aware and safe from any type of scam. When it comes to looking for properties and moving into new places, it becomes significantly more important that you feel secure and comfortable with the complete process. Here are a few red flags you must watch out for:
- If the deal seems too good to be true. For instance, if the rent of a place is multiple times lower than the rough amount you saw on online forums.
- If you cannot take a physical tour of the house and the landlord seems to be stalling you for no legitimate reason.
- If the process seems to be going too fast than what your speed is. There’s a good chance that the property might have some flaws that the landlord doesn’t want you to know. So they might try to rush you into fulfilling all the formalities.
- The process for transferring the money seems to be odd. The person might ask you for all cash or ask you to do a wire transfer for some vague reason.
These are a few red flags you need to look out for a while trying to rent a property. If you’re not alert enough, you might be scammed into moving into a place that is not good. So be aware.
Take Physical Tours
Now that you have saved yourself from all the red flags and listed down a few properties, it’s time to take live tours. Look at all parts of the houses you visit and check if everything you want and was promised is there or not. One way to go about this is to make a checklist beforehand. Address all the necessities and amenities you’ll want to have in the house. Thus, when you take the tours, you can check everything that is present and everything that isn’t.
Finalize the House and Fulfill the Formalities
Once you know everything about the houses, zero in on the one that best suits your needs. After this, you can get the ball rolling and ask for the lease agreement. Read it very carefully before you sign it; the documents might have certain loopholes or red flags in them. Ensure that it’s perfect, sign it, pay the amount, and voila! You’re all set to move into your new house.
FAQs
How to calculate the budget for renting a house?
Your budget should be lesser than or equal to 30% of the money you make. Take this number and start searching for homes that fall under this budget.
Which sites can I check for a rough idea about the house rent?
There are numerous sites available on the internet. Some of the most popular ones include Zillow and Redfin. You can use these to not only know the rent but also about the different kinds of amenities and necessities the different houses and properties provide.
How long does it take to fulfill all formalities for moving into a house?
Once you’ve zeroed in on the place, you only need to receive the lease agreement, pay the amount, and start moving. So these activities can occur anywhere between 2 to 3 weeks.