Insights

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Who is going to pay my rent?

You are going to pay your rent.  So many times I hear someone say they want to move out and get their own place.  I urge you to do it better than I did by having a little direction and some plans.  I understand the feeling of wanting to be out on your own.  I REALLY understand the feeling of wanting to be independent and have freedom.  That was me.

My scene:

I was raised in a small town with zero opportunities after high school so I shot out of home like a rocket.  I used my grad cash for a deposit, added a couple of roommates, moved to the city and THEN looked for a job.  It was so backwards.  As if I was in a movie, I ended up homeless for a while.  One of the roommate’s, “family friend” needed a place for the night and I was kidnapped.  It was a disaster!  I had a job by then and ended up getting a small cheap place of my own in a bad neighborhood.  I was so grateful for my little dive because I didn’t have a roommate.  I really went about the whole thing the hard way.  For the love of donuts, get a job before you move out!

How does this rent, lease thing work?

There are variations in different cities and complexes so you have to ask a lot of questions.  Here are some basics for you to get started.  Usually you have to apply.  Yes, there is an applications process.  The people who own the place and pay for all of the upkeep and taxes want to know that you have the means and intention to pay the rent every month.  Most places ask for the first and last month’s rent up front with a security deposit.  That means if the rent is $1000.00 per month and the cleaning/damage deposit is $500.00, you will need $2500.00 to move in.  Some places will include a few of the utilities and you need to know which ones.  Most places in my area will pay for the sewer, trash and water so you have to get the power and gas turned on in your name.  The utility company will also want a deposit if you’ve never had it in your name before.

QUESTIONS TO ASK WHEN LOOKING FOR AN APARTMENT:

Which utilities am I responsible for?

What fees do I need to pay before I can move in?

Do you have any special move in deals?

Do you allow pets?

Is there a pet deposit?

Who else will have a key to my apartment?

Does it come with a washer and dryer?

Is there an assigned parking space included?

Do you charge extra for parking?

Is there a late fee if I can’t pay on time?

Is there a discount for signing a longer lease?

What is my responsibility if I have to break the lease?

This is obviously not an exhaustive list that’s why it’s good to have someone who has been through it to help you out.  You can tell just by the list of questions that this is a big responsibility.  You’ll be signing a grown up lease or rental agreement with a lot of expectations on you.  These are legally binding contracts.  I don’t want you to be afraid but you need to be informed and understand what you’re getting into.  The more you think it through, ask questions and prepare the better you’ll do and the less scary everything will be because you educated yourself about it.  I’m sure there are other resources that you can read on the web that will give you specific information about the area you’re looking to move to.

A budget is a tool not a punishment.  Budgeting is not a babysitter or a list of things you can’t do.  It is a tool that you use to tell your money where to go instead of being broke all the time.  There are few things more disheartening then running out of money when you still have a bill to pay or an event to attend.  Budgeting your money helps you plan ahead for rent, events, gifts and even helps you set some aside for surprises WHEN they come.  BEFORE you look for an apartment figure out what you can afford.  Write down your expenses and subtract them from your net pay.  Try to include as much as possible in the expense list.  Don’t forget to subtract some money for food, gas, haircuts, phone, clothes, detergent, shampoo, car repairs, insurance or public transportation.  This is when you need to find out what support you have from mom or dad.  Are they going to expect you to pay your car insurance when you move out?  Are there other bills that you expect them to pay?  They are not obligated to pay anything so it’s best to get clarity from them and be very grateful for what they have already done.  Whatever amount you have left over would be what you have for rent and utilities.

You might need more support than you initially thought about.  Maybe your parents can’t support you financially but you will also need dishes, pots, silverware and a bed would be really nice.  There are a lot of ways family members can help you get started without paying your bills.  I use to mail my broke friend five or ten dollars in cash with an encouraging note.  It was small but I know he really liked the little extra for his tummy, laundry or gas.  My other friend had a grandma that sent him a little cash every month for laundry when he was in college; he said it really made a difference.  I feel like the cash went for pizza but I also suspect that his grandma knew that.

Sometime you have to get creative.  The dollar store is a great place for kitchen supplies and thrift stores sometimes have really nice furniture.  MONEY TIP:  Drive to thrift stores in the richer parts of town, they have better stuff.

When should you consider getting a roommate?

You should consider teaming up with a roommate when the rent is too much for your budget to handle or if you want a nicer place than you can afford by yourself.  There are also some people who don’t want to live by themselves.  Choose wisely, I was better off with a cheaper apartment in a bad neighborhood than with the roommates I picked.

Let’s talk about roommates!  I have some stories of roommates that worked out like a dream date on a tropical island.  I have other stories of people who were best friends and then never talked again after living together.  Men seem to do the roommate thing a little better than women.  It could be because of their temperament and propensity for being low maintenance.  Even men struggle with it if they are a neat freak or a real slob.  To help you know who you’re dealing with take a trip with them.  You learn a lot when you travel with someone.  Try to take your time and evaluate how you would want things to go before you start inviting everyone on your friends list to move in with you.  They will all want to move in with you and out of their parents house whether they can afford it or not. Will you want the place to be relatively clean or are you the one who doesn’t care about the overflowing trash can for days on end and empty pizza boxes on the floor in the living room?  Do you want someone to do life with or just someone with similar expectations that you may only see in passing when you’re getting ready to go back out?  Please keep in mind you probably want someone who already has a job so they can pay their half of the rent and utilities.  Will they be on the lease with you?  Do you want them to pay half of the deposits?  Who gets the parking place?  Can your friends hang out with you if your roommate has a night job and needs to sleep?  Will you share food or have designated areas in the fridge?

I believe I really got you thinking.  Write down the questions you want to ask and write down who is responsible for what.  A lot of frustration can be avoided just by sharing expectations and making boundaries clear from the beginning.

I’m going to move in, what do I do now?

We covered a lot of rental ground, but wait, there’s more!  When you get to the apartment you’re going to rent check it out thoroughly.  Have the manager take pictures of any damage and notes on appliances that aren’t working right away so you don’t have to pay for it.  Have them take notes of worn carpet areas, broken tiles, missing smoke detectors, broken blinds.  Be sure to take your own photos too.  Some would say you never get your deposit back so don’t worry about it.  I got my deposits back.  Don’t break anything or mark anything up and you’ll probably get yours back too.

Whew!  This is exhausting!  So you can’t go out tomorrow morning and move into a new place by that afternoon but at least you know where to start.  You’ll never get your own place if you don’t start somewhere.  Take a deep breath and tackle one thing at a time.

Let’s look at renting one step at a time.

  1. Start by using a free credit report service so that you know where you stand. If you don’t have any credit start building it up.  I’m an advocate for staying out of debt as much as you can but there are other small ways to give your credit score a boost.  If you have any kind of collections on your credit pay them off.  Call the company you owe because a lot of times you can negotiate a lower amount to settle the debt.  If you already have a student loan make the payments on time or early.  That’s what a credit score really is.  It’s a reflection of how you pay your bills.  Do you agree to pay a loan and then make the payments when you said you would?  If you already pay your bills on time, you already have a great start.
  2. Write out a budget.
  3. Decide on whether or not you need or want a roommate.
  4. Wisely select a roommate and ask if they’re interested.
  5. Research the area. Check out apartments by price, area, proximity to work or transportation.  Research amenities and fees.  If the complex has a gym you may save money on a gym membership.
  6. Fill out an application for the one you want and a few more. Your first choice may not have availability.  They will probably ask for recent pay check stubs, bank statements, references and have you sign for a credit check.  Some places may charge an application fee or a credit check fee.
  7. Read the rental agreement and ask a lot of questions. Everything should be written in the contract.  If the manager discusses something out of the ordinary for free then get it in writing.
  8. Depending on availability, pick your spot. You can live upstairs or downstairs.  Sometimes there is someone on both sides, sometimes only one side.  There are advantages and disadvantages to both.  Ask them if there is a price difference.  Upstairs, you have to carry EVERYTHING upstairs but there is less noise.  When I had a second floor apartment I could leave a window open for air and worried less about someone breaking in.  Downstairs or ground level is more convenient for groceries and laundry but someone lives over your head that may or may not be very noisy.  I’ve had both and always tried to be considerate of the people living around me so I never had any issues.  There are no guarantees either way.
  9. Pay your deposit and rent.
  10. Inspect the new place and take pictures like I mentioned before.
  11. Move in and enjoy!

There are many nice things about apartment life.  When you own a home and the heater brakes you have to pay for repairs or buy a new one.  If you’re renting a place and the heater brakes you just call management.  With good management this is a great thing, with owners or managers that don’t want to fix anything you may have to start looking again or save for a house.  In an apartment you don’t have to mow the lawn or clean the pool.  Enjoy it for what it is.  This is really a great time in your life.  As you figure all of this out you’ll learn more about yourself and the world in the process.  I’m sure you’ll have a great story to tell when it’s over.

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