Financial Tips for First-Time Renters

Financial Tips for First-Time Renters

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Renting a house or apartment for the first time is an exciting prospect for most people, especially those who’ve previously only lived with family or roommates. However, the process of fulfilling that dream is often easier said than done. Standing in the way of many would-be renters are various financial obstacles. With that said, a little planning and preparation are often enough for those determined to rent on their own.

To get started, consider the following:

Establish credit

Most landlords and property management companies request credit checks before renting to someone. If you lack substantial credit history, now is the time to build some. Start with applying for a small credit starter loan. Most lenders of personal loans in Albuquerque and other major cities offer these types of loans to those without credit. Simply use the money to buy the same things you normally would – like gas and groceries – then make the monthly payments on time until the loan is repaid. The transaction goes down as a positive account in your credit history, putting you on the path toward renting.

Save up money

Having good credit isn’t enough to be approved as a renter. Most would-be renters are also asked to pay first and last months’ rent in addition to any deposits for things like pets and waterbeds. For example, if the monthly rent is $650, you’ll need $1300. If there’s a $250 deposit per pet and you own two dogs, add another $500. It’s more money than most first-time renters have on hand, so start saving now.

Read the lease

A lease is a legally binding contract. That means it’s critical for would-be renters to carefully read over the entire document. It’s not uncommon for small but significant details to be scattered throughout the entire lease agreement paperwork. The good news is that it should only take you 15 minutes or so to read over the typical rental contract. If you have any questions, don’t hesitate to ask for clarification. If aspects of the lease make you feel uneasy, then trust your gut and look elsewhere.

Arrange for direct debit

Most landlords and property managers prefer tenants to pay via an automatic withdrawal on the same day every month. If this works with your financial situation, it’s highly recommended that you go with that option. Not only does it eliminate the risk of forgetting to mail your rent check on time, but it might also result in a discount on your rent.

Get renter’s insurance

The typical renter’s insurance policy is a few dollars a month, making it a bargain you don’t want to pass up. Coverage means reimbursement in the event your personal belongings are lost or destroyed due to theft, vandalism, or natural disaster. In fact, some policies even cover your possessions outside the home, such as a piece of jewelry lost on vacation.

So you want to rent a place of your own for the very first time. It’s an exciting and worthwhile goal, but one that requires financial planning and discipline to pull off correctly. Good luck!

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