TIPS FOR RENTING YOUR FIRST APARTMENT | 9 Money Tips To Help You Prepare

Summary

In this insightful video, the host from Wander Wealthy shares nine essential tips for renting your first apartment. Covering topics from understanding credit scores to budgeting for rent and utilities, the video emphasizes the importance of planning ahead. Viewers learn about the 50/30/20 budgeting rule, the necessity of renters insurance, and the benefits of having a roommate to reduce costs. The host encourages responsible financial habits, such as avoiding debt for furnishing and being aware of lease agreements. With practical advice and personal anecdotes, this guide aims to equip first-time renters with the knowledge they need to make informed decisions.

Takeaways

• 😀 Check your credit score early to understand your financial standing before apartment hunting.
• 💰 Aim to spend no more than 30% of your monthly income on rent to maintain a balanced budget.
• 🔍 Inquire about what utilities are included in the rent to better plan your monthly expenses.
• 📊 Estimate utility costs by asking current tenants about their average monthly bills.
• 💵 Save up for upfront costs like security deposits and first month's rent to avoid financial strain during your move.
• 👥 Consider finding a roommate to reduce living expenses and save money for the future.
• 🛋️ Furnish your apartment wisely by seeking affordable or second-hand furniture instead of relying on credit.
• 🌡️ Be mindful of thermostat settings to optimize heating and cooling costs throughout the year.
• 📝 Thoroughly review lease agreements to understand your rights and obligations before signing.
• 🔑 Building a positive relationship with your landlord can ease the rental process and future interactions.

Q & A

What is the importance of checking your credit score before renting an apartment?

Checking your credit score helps you understand your financial standing and prepare for potential landlords who will likely check your credit history as part of the application process.

What should you do if you have no credit history?

If you have no credit history, consider having a trusted roommate or a family member co-sign the lease for you. Alternatively, renting from private individuals instead of larger companies might help, as they may not strictly require a credit check.

What is the 50/30/20 rule in budgeting?

The 50/30/20 rule suggests that 50% of your income should go to fixed expenses (like rent), 30% to discretionary spending, and 20% to savings and debt repayment.

How much of your monthly income should ideally be spent on rent?

It is generally recommended to spend no more than 30% of your monthly income on rent. Some more conservative advice suggests keeping it to 25%.

What factors should you consider when calculating your monthly rental expenses?

Consider not just the rent, but also utilities, insurance, and any additional costs like parking or pet fees, as these can significantly impact your overall budget.

Why is renters insurance recommended?

Renters insurance is important because it protects your belongings from theft, damage, or loss, and it’s typically not very expensive.

What should you do to prepare for move-in costs?

Start saving early for move-in costs, which can include a security deposit, first month's rent, administrative fees, and moving expenses. It's advisable to create a separate savings account for these expenses.

How can finding a roommate help with financial planning?

Finding a roommate can significantly reduce your housing costs, allowing you to allocate more funds toward savings and other financial goals.

What is a smart approach to furnishing your first apartment?

Avoid furnishing your apartment on credit; instead, consider hand-me-downs or second-hand furniture. Save up for items you want to purchase to avoid debt.

What should you understand about your lease agreement before signing?

You should thoroughly review the lease agreement for terms regarding pets, subleasing, and your responsibilities to avoid unexpected fees or issues down the line.