House hunting is more commonly associated with those looking to purchase a home. However, the term can equally apply to renters seeking a single-family home as their own family grows or simply more space and privacy—without the high costs or long-term commitment of buying a home.
When it comes to house hunting, renters will want to ensure they get as close to their dream home as possible. Unfortunately, a lack of preparation and a poor understanding of the rental process can leave would-be house tenants struggling to get the keys to that ideal home.
Point2Homes put together the following insights to help house renters confidently navigate the market and find the perfect place to call home.
1. Set a Realistic Budget
No matter how many boxes a rental property ticks, it can soon become a nightmare if the finances don’t add up. Paying too much each month on rent, utilities, and other living costs will quickly lead to stress and, in the worst-case scenario, eviction. As such, it’s essential that anyone looking for their dream rental takes the time to set a realistic budget.
When budgeting, it’s important to consider every potential cost, not just the monthly rent. The most common rent-associated costs are:
- Rent
- Security deposit
- Application fee
- Utilities
- Renters’ insurance
- Moving costs
- New furniture, appliances, and furnishings
- Parking permits
It can help to split these costs into two categories: upfront costs and recurrent costs.
For the upfront costs, tenants will need to make sure they have the funds available at hand. Upfront costs typically include the first month’s rent, security deposit (usually the equivalent of one month’s rent), various move-in costs, utility set-up costs, furniture and furnishings, and parking permits. Of course, not all these costs apply to every renter. For example, parking permits and furnishings won’t be necessary if a rental is fully furnished or already includes a private parking space.
Recurrent costs typically include the monthly rent and utilities but may also include monthly renters’ insurance if taken out.
Extra tip: Budget to Avoid Financial Strain
Sensible budgeting can be a lifesaver when looking for a quality rental. It requires the tenant to look ahead and plan their finances accordingly and ensure that their income will comfortably cover the continual costs.
Ideally, a tenant should spend no more than 30% of their income on rent each month. In fact, landlords will often reject applicants whose debt-to-income ratio exceeds this.
To ensure success when applying for a rental, be sure to search for properties that fall within comfortable financial boundaries. The lower the percentage of income spent on rent, the better. As such, aiming for 20-to-25% of rent to income will put renters in a strong position when applying for rentals.
It’s also essential to ensure that all upfront costs can be comfortably covered. Sensible renters will generally identify their costs and ensure they have at least 15% more in reserve as a safety net.
2. Identify Priorities but Be Flexible
Once they have a budget in place, renters can begin to laser focus on their search. Now is the time to decide what features are non-negotiable and which can be more flexible. Each tenant has different wants and needs, so think long and hard about what matters most. Consider things such as:
- Location (specific neighborhoods, proximity to work or school, amenities etc.)
- Number of bedrooms and bathrooms
- Accessibility (wheelchair access, ground floor entrance, etc.)
- Lease duration
- Move-in date
- Furnished or unfurnished
- Private outside space
- Parking space
Once the non-negotiable terms have been decided, it’s easier to filter out any properties that don’t fit the bill. Besides saving a lot of time skipping through homes that don’t cater to the needs of the tenant, identifying needs and wants enables tenants to check that their budget can cater to what they’re looking for.
Identifying priorities is essential, but it’s also helpful to be flexible where possible, especially if appropriate listings are few and far between. Realistically, people who can be more flexible with their needs and wants will have far more options when it comes to house hunting. For example, being flexible when it comes to the move-in day can be an asset. It may well be worth considering renting short-term or staying with friends or family in the interim if a property won’t be ready to move into immediately.
3. Browse Recognized Listing Services
Real estate rental scams are increasingly common, but one way to avoid the worst of these is to only use recognized listing services when house hunting.
There are many well-known listing services online, with several that cater specifically to renters or, like Point2Homes, to single-family home renters. It’s best to research what’s available locally and limit searches to these verifiable platforms.
Be advised that many of the same listings will appear on different listing services. This is perfectly normal, and choosing one portal over another generally comes down to personal preference. Each service will enable house hunters to narrow the search using various filters, such as location, price, number of bedrooms, and much more.
Legitimate listings will typically feature plenty of high-quality photos, detailed descriptions, and details of the landlord, listing agent, or property management company. Be wary of listings that seem too good to be true, offer poor-quality information, or contain many typos.
Extra tip: Ask Friends and Family, Too
House hunters don’t have to limit themselves to listing services when it comes to searching for an ideal rental. Personal recommendations can go a long way when it comes to reliable real estate professionals to work with or even property suggestions. Sometimes, speaking to friends, family, or coworkers can result in finding a rental that hasn’t yet been listed on the open market.
4. Seek Professional Assistance
Working with a real estate agent is a reliable and safe way to search for a place to rent. They can do all the legwork while tenants only need to inform them of their budget and needs. Real estate agents will typically be able to filter through the listings far quicker than the average rental house hunter. They may also have access to listings that haven’t made it to the open market yet. Not only does this give potential house renters a wider selection, but it can also reduce competition.
In addition, a real estate agent will be far more familiar with real estate and legal jargon, ensuring everything in the lease agreement is as it should be. They’ll also know how to avoid common real estate scams, offering renters peace of mind.
The only downside to seeking professional assistance is that it implies an extra cost. However, this can be well worth it in the long run. To reduce costs yet still ensure peace of mind, house hunters could search and apply for properties themselves but hire a real estate lawyer to check through the paperwork before making any substantial payments.
5. Always Visit the Property & Neighborhood Before Deciding
Rental property listings are designed to show properties at their absolute best. As such, the photos are taken to make spaces seem more generous. They may avoid the less desirable features of the rental altogether. In some instances, the photos have been staged, using furniture and design features that aren’t usually present on the property. This is a normal and perfectly legal practice, so it’s wise to view listings with this in mind.
Once they have a shortlist, tenants are advised to view any properties that they’re seriously interested in. Viewing a house in person is an invaluable experience. It enables potential renters to see the property and gives them a feel for what it would be like to live there. Beyond the online experience, potential tenants can make a more informed decision based on what they see, hear, smell, and sense on site.
The same applies to the neighborhood or area in which the property is located. Only by physically visiting can house hunters know if it feels safe and friendly or if it’s really close enough to the things they need access to. A prolonged visit to the area, perhaps for coffee or a meal, during both day and night can offer peace of mind or send warning signals.
6. Prepare the Essentials in Advance
Often, the best rentals get taken shortly after they’re listed. This means that house hunters need to be aware of new listings by setting up notifications on rental portals and ensuring they’re ready to apply when their ideal home comes up. This is why it’s important to stay organized and give everything that’s needed for the application in advance. This includes:
Finances
Having prepared a budget, house hunters need to make sure that the necessary funds are in their bank account and ready to go.
Paperwork
Landlords and property management companies will require several documents from applicants. Mostly, these will prove that the applicant has the financial security to comfortably pay the rent and that they have the legal right to apply and live there. Typically, applicants should prepare:
- Bank statements
- Payslips
- ID
- Social security number
- Credit report
In some cases, additional documentation may also be required, such as proof of renters’ insurance and any guarantor’s paperwork.
References
Renters are typically required to provide references from previous landlords, as well as employers. If these are not available, character references may suffice. Ensure all potential references have agreed to be contacted and gather their contact details.
7. Seek References from Previous Tenants
A lovely house in a great neighborhood may seem like a dream come true on paper. However, the experience can turn into a nightmare if there are problems with the landlord, property manager, or neighbors. A bad landlord may be slow to respond to emergencies, hold back on basic maintenance and repairs, withhold security deposits, or be quick to evict tenants for no discernable reason. Poor property managers can be guilty of much the same. Meanwhile, bad neighbors can lead to sleepless nights due to noise or create an unfriendly and unwelcoming atmosphere overall.
While it may feel a bit strange to ask for references from previous tenants, house hunters are well within their rights to do so. Good landlords or property managers will generally have no issue with providing contact details for previous tenants so long as they’re happy to be contacted.
When reaching out to previous occupants, house hunters would be wise to inquire about tenant-landlord/property manager relations, focusing on ease of communication, how quickly they responded to problems, and any unfairness issues. It’s also a good idea to ask about the neighbors and whether there have been any issues with them or the neighborhood.
8. Allow Plenty of Time
Moving into a new rental can take time, so it’s wise to begin house hunting sooner rather than later. A last-minute search will often lead to house hunters choosing homes that aren’t ideal, whether they stretch the budget or lack the desired features.
It’s a fine balance, however. Starting too soon can result in seeing listings requiring a move-in date much earlier than planned. For the best results, renters should begin by allowing plenty of time to get a feel for the market and recognize what’s a good price. Search online to see what’s available, but don’t necessarily expect to start applying until later.
This way, house hunters can better manage their expectations, set more realistic budgets, and prepare all the paperwork well in advance. It’s generally worth allowing at least a month to start applying and moving into a new rental.
Finally, one must thoroughly read through the lease agreement to ensure they’re happy with the terms. If so, sign on the dotted line and prepare to move in.
Featured image: Studio Romantic/Shutterstock.com
