Renters due diligence includes different steps depending on what you hope to get out of a rental property. Here are some tips for tenants, whether you’re a first-time renter or a veteran.
Set Your Budget
Is there anything worse than browsing listings and falling in love with a property, only to realize it’s out of your budget? Common advice is to budget for rent that is no more than 30% of your gross, monthly income. So, before you even look at property photos, set those parameters in your online search. Know what your monthly income is, and do the math to determine what you can comfortably afford for rent, on top of your other regular expenses.
If you plan to rent a property with more than one income, be sure that you’re not going above the legal headcount for the home. Some properties have restrictions on how many people can live in a unit, which can put a damper on your plans to have roommates.
Prep the Paperwork
Most property management companies request copies of pay stubs and credit reports with your application. In today’s competitive real estate market, be sure you have all your paperwork sorted before you even look up a property online. To beat the competition, you have to be quick. Have hard copies of references, as well as all your financials ready to go.
Scout the Neighborhood
Many tenants and potential home buyers are committing to properties after just seeing them online. It’s such a tough time to secure a home right now that putting in applications and offers without visiting in person is almost a necessity. However, if at all possible, walk through the neighborhood you hope to live in. Get a feel for the neighbors, the traffic, and what amenities are nearby.
If you can’t visit, join a Facebook group for the area you’re moving to. This will give you a chance to communicate with people who live and work in the area and ask questions. You may not only get a better understanding of the community, but you could get a jumpstart on making connections with locals.
Look at the Lease
Speaking of paperwork, be sure you read the lease before signing on the dotted line. Know what is expected of you as a renter, and what is the landlord or property manager’s responsibility. Everything should be in writing, including who’s performing lawn care, what amenities are included in the rent, and whether or not there are HOA fees to be paid by the tenant.
If you have questions, bring them up before closing so you’re not facing hard decisions about where to live at the last minute.
Get It in Writing
Have a maintenance request for your landlord? Put it in writing! Have a question about making improvements to the property yourself? Put it in writing! It’s always important to have written documentation of requests or agreements after you’ve moved in. It helps keep all parties accountable and avoids confusion. This will be helpful when it comes time to move out and you can show proof that your landlord approved the installation of curtain rods, so your security deposit shouldn’t be affected.
The state of your rental property upon move-in should be documented so that it can be compared to the state of the property upon move-out. Any discrepancies in condition should be noted in writing (and photographed) so if you have questions about a portion of your security deposit being used for repairs there’s a paper trail.
Communicate
Although the relationship between tenant and landlord (or property management company) is a business transaction, it’s still a good tip to keep the lines of communication open. If possible, don’t just visit the rental office when you have a complaint. Or, send a holiday card to your landlord or property management company to foster a positive relationship. Then, in the instance that a problem arises, you have a history of communication that goes beyond just collecting rents or making complaints.
Invest in Renter’s Insurance
Did you know that you can purchase renter’s insurance to compensate you for any loss or property or damage in your rental? The homeowner and property manager have their own insurance, but they will not reimburse you as a tenant for expenses incurred in the event of a theft or natural disaster. Although an extra bill each month, renter’s insurance is often worth the peace of mind it offers.
Often, to have a good working relationship with a property management company or landlord, it boils down to being on time with payments and having open communication. When these two things falter, that’s when other problems start to arise.