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How much can you afford to pay?
Whether you plan to rent or buy your home, you must know your
living expenses to decide how much you can safely spend on
rent or a mortgage. Use the Housing
Cost worksheet to create a budget and figure out how much
you can afford to spend on housing.
What do you need in a place to live?
If you have decided to rent, and you know what you can afford to spend, you can begin your search for a suitable rental property. First, make a list of what you need and what you would like to have in your home.
Location is Important
Where you live determines the length of your commute to work, school, and trips to the grocery store. If you have children, you will want to be near good schools. Convenience to shopping centers, malls, and recreation sites is also important. The safety of the location is something most people assess carefully. Will you need a security system? What is the parking situation? Parking availability affects safety as well as insurance rates. How many bedrooms and bathrooms do you need? A growing family may feel that a bigger house is more appropriate, while older people may enjoy a smaller space to manage.
If you have a pet, your rental choices will be more limited
because many landlords refuse to rent to pet owners. Use the
Checklist
for Rating Homes to speed up your search and eliminate
properties that don't meet your needs. Rate each item on a
scale of one to five, with five being the highest. Total your
score for each property, and plan to visit your top three
to five properties as soon as possible.
Where can you find properties for rent?
You can find listings for rental properties in the classified sections of your local and regional newspapers, through rental agents or friends and family, and on the Internet.
How should you prepare to meet with prospective landlords?
Prepare for meeting prospective landlords by understanding what you want and what you need to know.
- Understand the nature of various rental agreements. Know the difference between a lease and a rental agreement, and decide which is right for you before meeting the landlord. While a rental agreement provides tenancy for a short period of time, a fixed-term lease is a contract that obligates both the landlord and you for a set period of time. Although month-to-month rental agreements give you more flexibility than leases, they often benefit the landlord more than they benefit you. With a fixed-term lease, you will be fully aware of the agreement and no changes can be made without the consent of both you and your landlord within a given time period.
- Have a list of questions prepared You want to gather information about the property, and you want to evaluate the landlord, too. If the landlord is punctual, neat, and organized, you might expect his property to be well maintained.
Sample questions
- What is the address of the property?
- What is the landlord's full name and contact information?
- What is the length of the term of the lease or rental agreement?
- How is rent paid, and can late charges be applied?
- Is there a security deposit, how much is it, and how do you get it back?
- Who pays utilities?
- What are a tenant's property-maintenance responsibilities?
- What are the rules regarding violating laws and causing disturbances?
- What is the pet policy?
- What are the landlord's rights to access?
- How can you extend the lease?
- When will the landlord return your calls?
With answers to these questions, you should feel well informed. If you decide that you have found the right rental property, it's a good idea to provide written references to your prospective landlord. These references can come from previous landlords, employers, friends, or colleagues. It is also helpful to have copies of your credit report and driver's license available for the landlord.
What is typically included in a rental agreement
or lease?
Before signing a rental agreement or lease, make sure you have reviewed it thoroughly and understand all the terms. Rental agreements or leases typically include:
- names of landlord and tenants
- address of the rental property
- term of the lease (amount of time covered by the lease)
- amount of rent
- when rent is due, to whom it is paid, and where it is paid
- amount of any late charges or returned-check charges
- security deposit information, amount, and purpose
- policy for return of security deposit
- pet policies
- number of occupants allowed
- who is responsible for paying utilities
- who is responsible for yard maintenance
- landlord promises/responsibilities in regard to household repairs
- policy on renters insurance
- who receives legal notice for the owner
- early-termination policy
- advance notice of move-out date policy
- whether attorney's fees can be collected from the losing party in the event of a lawsuit between you and the landlord
If you are unclear about any of the items in the agreement, be sure to resolve any outstanding issues before you sign the lease. Once the contract is signed, keep several copies of the agreement for your records.
What rights do you have as a tenant?
Tenants have many rights. You should know about your rights for your own protection. The Federal Fair Housing Act prohibits discrimination on the basis of race, color, religion, national origin, gender, age, family status, and physical or mental disability. Many states and cities also prohibit discrimination based on marital status or sexual orientation.
Legislatures in most states have passed laws requiring landlords to keep rental units in habitable condition. For detailed information, contact your state consumer protection agency, which publishes pamphlets or brochures that describe landlords' repair and maintenance responsibilities.
It is a good idea to inspect the property before signing any agreements. The inspection should include asbestos, lead, radon, and carbon monoxide checks to ensure environmental safety and protection.
Tenants also have rights regarding privacy. Generally, landlords are allowed entry, with your permission, in certain circumstances:
- emergencies
- to perform repairs
- to take care of maintenance if you are away
- inspections
- To show prospective tenants or purchasers the property
In the event that your landlord does invade your privacy, there are several common ways to deal with the problem. You can talk with the landlord, write a tough letter, sue him or her, or move out. It is usually best to resolve differences through direct communication between you and your landlord rather than through the legal system.
What if you need financial help to afford a rental
property?
If you need financial help, you may want to begin with a housing counselor. A list of counselors and agencies is available from the U.S. Department of Housing and Urban Development (HUD). A counselor will become familiar with your situation and make recommendations tailored to your immediate and long-term needs. In addition to the Web sites listed at the end of this section, you will also want to check other options:
- public housing: low-income housing operated by the local housing authority (expect a waiting list)
- the Housing Choice Voucher Program-Section 8
- U.S. Department of Housing and Urban Development
- Rural Rental Assistance programs
- privately owned subsidized housing
How do tenancies end?
At the end of their lease, you will either move out or renew the lease. If you are going to move out, you should provide notice to your landlord-check your lease for how much notice you agreed to give.
Leave the property in good condition. Reasonable wear and tear is unavoidable and should not affect the return of your security deposit. Your lease or rental agreement will have the details of the return of your security deposit. If your landlord refuses to return a security deposit you can file a lawsuit. On the other hand, if you caused unreasonable damage to the property, the landlord can withhold your security deposit to pay for needed repairs.
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