Whether you’re renting for the first time or you’ve been around the block a few times already, when it comes to renting a house, there are some things you need to get right. Unfortunately, even the most experienced renters can be prone to making mistakes, some of which can be extremely costly.
With that in mind, let’s take a look at 10 renting mistakes that first-time house renters should avoid at all costs.
1. Failing to Budget Properly
When it comes to renting a house, there are a lot of costs to take into consideration besides the rent itself. Not taking these additional and ongoing costs into account at the budgeting stage of renting a house is one of the biggest mistakes a tenant can make, leading to financial stress and possible eviction.
- Monthly rent,
- Application fee,
- Security deposit,
- Pet deposit (if moving in with pets),
- HOA fees (if applicable),
- Utilities (if not included),
- Renter’s insurance.
When considering a house to rent, make sure you know exactly what costs to expect and ensure they fit within your budget. In general, it helps to research the local market to get an idea of what you can expect to pay in rent each month. Then, ensure you can comfortably afford at least 2.5 times that figure.
2. Not Viewing the Rental
Most people wouldn’t buy a car without seeing it first, but when it comes to renting, especially in a hot market, it’s surprisingly common for tenants to rent an unseen property. But, even if the listing boasts a video tour, you’ll never truly know what it’s like until you’ve seen, smelt, and heard it in person.
3. Not Researching the Neighborhood
Following on from the previous point, not knowing the neighborhood can also prove to be a big mistake. Blindly moving into a new area can lead to many problems. By researching and visiting the neighborhood in advance, you’ll be in a much better position to decide whether it’s a suitable location for you. No matter how great the house is, if it’s in a location that doesn’t work for you, you’re in for a tough time.
Ensure you have access to all the amenities you require, check the local crime rate, and see what the neighbors are like. It will be easier to get involved in the community, or build one by bringing new habits and traditions, but first you need to make sure your neighbors would be open to that. Also, it helps to visit at various times of the day, and if necessary, try the commute to work or school.
4. Neglecting Your Rental Needs and Wants
Everyone has different wants and needs and it’s important to identify yours when you’re searching for a house to rent. It’s all too easy to become blind-sighted by the cost alone, and neglect to focus on what you need to make life in your new home happy.
Before you start searching for a new rental, draw up a list of your needs and wants. Ensure that you meet as many needs as possible when you make your choice, and ideally, tick a few wants off the list too.
5. Not Reading the Lease Agreement
Once you’ve found the ideal house to rent, there are still several mistakes to avoid. The biggest of these is failing to read the lease agreement before you sign it. As a legally binding document, neglecting to read through it thoroughly can see you tied to terms that aren’t in your best interests.
The lease agreement documents the responsibilities of both the tenant and the landlord, as well as any penalties and processes in place for failing to comply with the terms listed. Having a firm understanding of it is essential. If you’re unsure, it can help to go through the document with a realtor or lawyer.
6. Avoiding Asking Questions
Asking questions before you sign the lease agreement is a great way to clarify any points you’re not sure about. From questions about the property itself to the terms of the lease agreement, or even the best way to contact the landlord when issues arise, it’s important to clear these things up before you move in.
Never assume anything when you move into a new rental home. If you’d like to paint the walls, ask first and find out if it’s something you’ll be able to do. Likewise, if you’re not sure about the terms of the agreement, ask for written clarification.
7. Ignoring Existing Damage
When you first move into your new rental house, it’s important to inspect the property and document any existing damage. Ideally, this should be done with the landlord so you can compile an inspection checklist, which can be referenced when you move out to ensure you’re not blamed for damage that was there before you moved in. Put everything in writing and have it signed and dated, with photos as supporting evidence.
If during your inspection, you come across more significant damage, be sure to report it to your landlord in writing so they can start rectifying the issue.
8. Not Reporting Maintenance Problems
Beyond the initial inspection, it’s essential to report any maintenance problems to your landlord as soon as they come up. From leaky pipes to electrical faults, the sooner they know, the sooner they can fix it. You might be tempted to repair things yourself, but if something goes wrong, you’ll often be held responsible. Not disclosing damage can also lead to losing your security deposit when your lease expires.
9. Missing Rent Payments
Another huge mistake that renters can make is missing, or delaying rent payments. This can be extremely costly, with late fees mounting up to as much as $200 a day in some cases until payment is made. Beyond the extra cost, it can also negatively impact your credit score. In the worst case, missed payments can see you evicted.
Most landlords will be flexible if given a heads-up, so if you know you’re going to be late with your rent, reach out and see if you can find a compromise.
10. Forgetting Renter’s Insurance
Renter’s insurance is an extra cost, but it can save you a lot of stress and money if things go wrong. From house fires to burglary, renter’s insurance can cover the cost of your possessions, while more comprehensive policies can cover alternative living costs if you need to temporarily move out of your home.
