Since the housing bubble burst, the rental landscape in the U.S. has changed dramatically. Renters now comprise 34% of all households. Rents have also risen, up 3.2% last year. Housing is the largest monthly expense for many.

With the rental market becoming increasingly competitive, being well-prepared is essential for landing your ideal place! Here’s our list of 10 things potential renters must know.

1. Competitive Edge:

To get a competitive edge over other applicants, bring your paperwork. For a smooth approval process, be prepared with a completed rental application, written references from a previous property owner/employer, and an apartment hunting checklist to remember everything from fees to appliances. A current copy of your credit report is highly recommended.

To Get a Copy of Your Credit Report

You can order your credit report by mail, phone, or online at www.annualcreditreport.com or directly from the websites of the three major national credit bureaus:

● Equifax

● Experian

● TransUnion

2. Setting a Budget:

The good ol’ 30 percent rule suggests that renters should not spend more than 30% of their monthly adjusted income on rent, leaving room for other expenses. While this guideline is still relevant, many consider it outdated. A more modern approach is the 50-30-20 budgeting model, where 50% of your income goes to fixed expenses, 30% to discretionary spending, and 20% to savings.

Experts recommend keeping housing costs between 25% and 30% of your income, so it’s essential to factor in additional costs like utilities, parking fees, and pet expenses when creating your budget. Landlords often require renters to earn at least three times the rent, which will help you identify which rentals fit your financial situation.

Ask your landlord for rent receipts, especially if you pay by check, to keep accurate records of your payments. Reporting your on-time rent payments to a credit bureau through services like Avail can also enhance your credit score.

3. Apartment Hunting:

● Identify What Amenities You Need: Apartment amenities include features or services available to renters, which can be in-unit or part of shared facilities in the building, like a gym or parking garage. If the rental is pet-friendly, it could offer amenities like a pet run or a backyard. While many amenities may seem appealing, it's important to be clear about what’s essential for you. Being willing to compromise could lead you to find a home in a more desirable location.

● Visit Apartment Hunting Websites to Find Rentals: There are many apps available for apartment hunting that provide up-to-date rental listings and let you filter by price, property type, number of bedrooms and bathrooms, desired move-in date, pet-friendly options, and more. Some apps conveniently indicate whether specific rentals are no longer accepting applications or are unavailable.

Think outside the box! Consider expanding your search to include single-family homes and townhomes, as you might find excellent deals, especially if you're sharing rent. Additionally, check out for-sale listings, some homeowners may be open to renting or arranging a lease-to-own deal on their property.

● Schedule In-Person Property Showings: Most apartment hunting websites provide the modern convenience of virtual tours and 3D showings. However, it’s critical to schedule in-person viewings with the landlord or property manager to evaluate the true quality of a rental and get a feel for the neighborhood. In-person showings also offer a great chance to ask the landlord any questions you may have about the property, the rental application process, decorating rules, and how deliveries are handled

4. Review the Lease

Carefully review all the terms of the rental agreement before signing the lease. Does it contain clauses you find disagreeable, such as restrictions on guests, pets, alterations to the property, or running a home business? Don’t hesitate to ask questions. Fully understand all the terms of your tenancy before proceeding and keep your copy in a safe place.

5. Security Deposit

Protect yourself and prevent misunderstandings. Your lease/rental agreement should clearly outline the security deposit details, including the refund process and any allowable deductions. When you move in, use a move-in statement or checklist to conduct a walk-through with the landlord.

● Document any existing damage. Make sure you fully understand your lease terms. Be clear!

● Take photos on move-in & move-out day.

● Keep a record of any repairs or changes you make during your tenancy.

● If you find issues with the flooring, the doors, or any other parts before moving in, photographs can act as proof that you didn’t cause the damage while living in the unit.

At the end of your lease, arrange a final walk-through with the leasing staff or property owner to review the condition of the property.

6. Purchase Renter’s Insurance

Why is this a critical step?

● Your landlord's insurance won’t cover your personal losses from theft or damage.

● Renter’s insurance provides liability coverage against injury claims in your rental property due to your negligence.

● If you have pets a pet policy provides additional protection during your lease term.

Standard renter’s insurance policies specify the items and events covered. The cost of your renter’s insurance can vary depending on several factors including the coverage you select, but according to Forbes Advisor, coverage typically costs around $173/year for up to $15,000 in personal property.

7. Know your Privacy Rights:

In addition to disputes over rent or security deposits, a common misunderstanding involves the balance between a landlord's right to access a rental unit and a tenant's right to privacy. It’s highly important for renters to be aware of their rights. Important rights include the Right to Fair Housing (established by the Fair Housing Act of 1968), rules regarding security deposits, and the right to privacy, among others.

Each state has its own regulations, so staying informed helps safeguard you from violations of your rights. By understanding your privacy rights, including how much notice your landlord must give before entering, you can better defend those rights.

8. Request Repairs

In general, landlords are obligated to provide tenants with livable conditions: a clean, safe, structurally sound premise with heat, water, electricity and proper weatherproofing. If your rental unit is not properly maintained, you could have several options:

● Reach out to the building inspector where applicable. They may require repairs.

● Withhold a portion of the rent, pay for repairs and deduct the expenses from your rent.

● Move out without being liable for future rent.

Maintain open communication with your landlord. If you encounter an issue, such as delays in repairs, discuss it with them to explore possible solutions. Start by contacting the on-site manager, and remember that legal action should always be a last resort. Understand your rights to live in a habitable rental unit and don’t accept anything less.

9. Get Everything in Writing:

Prevent disputes or misunderstandings with your landlord by keeping a paper trail. Keep copies of all communications and follow up on verbal agreements with written confirmation. For example, if you request repairs from your landlord, submit your request via email and save a copy. If the landlord agrees verbally, send an email or text to confirm the agreement.

10. I’ve Been Evicted, Now What?

Understand when to contest an eviction notice and when it might be best to move on. If you believe your landlord is clearly in the wrong—such as failing to provide proper notice or not maintaining a habitable environment—you might decide to fight an eviction. However, unless you have evidence to back your claims and strong legal grounds, challenging an eviction can be risky. Losing an eviction case could result in significant financial consequences. It can harm your credit rating and make it more difficult to rent from future landlords.

● Respond to any court summons for an eviction action.

● Only a judge can evict you.

● Your landlord may not evict you for asking for repairs.

● Your landlord must give you at least 30 days written notice, depending on how long you've lived there.

~ Melissa Smith

- Wolford and Associates