RENTAL PROPERTIES
You’re freaking out because you’re moving to a new city and have no idea what neighbourhood to live in, what amenities your budget allows for, or if you’ll be allowed to keep your pet. Maybe you have to shift to another apartment and you’re searching for a new apartment for rent. Well, here are a few tips that will help you through your renting process-
1. Negotiate
Rent isn’t necessarily negotiable, but many landlords are willing to compromise on price. While lowering the official rent price can be the most difficult, sometimes you can negotiate other means of decreasing what you have to pay. For example, if you have a pet you can ask for additional pet rent costs to be waived. If you need an extra parking spot, that’s something else you can ask for as a way you can save a little money. If you want a discount specifically on the rent, however, you may be more successful if you agree to extend the length of the lease. Most leases last 12 months, but by agreeing to a 13th month you’re giving the landlord assurance that s/he’ll be receiving rent for an extra month. Just like you can with cellphone contracts, you can sometimes get a better price by agreeing to a longer term.
2. Have a chat with existing tenants
While this may seem a little intimidating, if you want to get a good idea of what it’s like to live in a particular apartment building you need to speak to people that already live there. Gathering a few experiences can be really helpful in getting a clear picture of what living there will be like for you.
3. Are there schools nearby
Looks for good schools in the area if you have children. This may be the single most important factor you have to consider while selecting an apartment.
4. Document Any Existing Damage Prior to Moving In
Once the landlord has given you the option to rent the apartment, make sure to document any pre-existing damage before signing a lease. If there is anything that the landlord did not agree to fix from your initial visit inspection such as stained carpeting, broken blinds or missing tiles in the shower, make sure this damage is documented in your lease as pre-existing.
5. Know What’s Included
Some rental properties include utilities, cable and parking within the monthly rental cost, while other properties do not. This can impact your monthly budget and make an otherwise affordable apartment, not so affordable. Some properties might offer public transportation, on-site health club memberships, or discounts to local gyms, all of which could save you money. Before signing a lease, ask your landlord exactly what is included in the monthly rent rate so that you are clear about how this new apartment will impact your monthly budget and lifestyle.
Once you know what you want and what it will cost, sit down and think about your choices in the following two ways
- Look at your actual budget. Consider whether one apartment would leave you with more money left over.
- Evaluate an apartment’s worth based on the sum of values you haves assigned to the features from your list. Make sure the actual rent you pay is within reason for what you can afford.
- Knowing you have an actual value for what’s important to you will enable you to make a decision on where you live based on your own needs instead of a community advertisement.
Here are things to know before finding an apartment.
1. Your credit score
This three-digit number can make or break your ability to get a mortgage and will affect what interest rates you can qualify for. Learning your credit score gives you an idea of where you’ll stand with lenders and whether it makes sense to work on strengthening your credit before applying for a mortgage. Higher credit scores help you qualify for lower interest rates.
2. How much home you can afford
It’s a good idea to keep housing expenses to no more than 28 percent of your monthly gross income. That means monthly payments for your mortgage, property taxes, and homeowners insurance should not exceed that threshold. You’ll also want to consider your total debt-to-income ratio, or DTI, when determining how much house you can afford.
3. Options for your down payment
The down payment is the upfront cash you pay toward the home purchase. Lenders offer a variety of mortgages with different down payment requirements. Many states and some counties and cities offer programs that combine mortgages with low interest rates with down payment assistance and help with closing costs. Explore your options to decide how much you’ll need to save for a down payment.
4. How much you can borrow
Before you start looking at homes, apply for mortgage pre approval with at least a few lenders. A pre approval letter is a lender’s offer to loan you a certain amount under specific terms. Compare the offers to get the lowest rates and fees.
5. Condition of your local real estate market
Browse listing websites and check market reports from your local real estate agencies to learn about home prices, demand for homes and inventory of properties for sale. This will give you an idea of what prices are for homes in your area and how much competition you’ll face when making offers to sellers.
6. Where you want to live
Every city has distinct neighbourhoods with their own personalities. How you want to live will determine where you’d like to live. How far are you willing to commute to work? What types of amenities do you want nearby? Do you want a bustling neighbourhood with restaurants within walking distance or a quiet suburban area?
7. Type of home you want
A detached, single-family home isn’t the only option. Condominiums, townhomes and manufactured homes can be more affordable. Consider your budget and lifestyle to decide what kind of home is right for you.
