Going out on your own is exciting, but it’s also challenging. When you rent a house as opposed to an apartment, you get more space, a chance to decorate and a yard. You also have more responsibility and take on a bigger monthly payment. Still, it’s a new challenge you won’t regret, as long as you go into it prepared.
With that in mind, here are five things you should know about renting a house before you pack your bags.
[Read: 7 Hacks to Help You Find Your Next Apartment in a Week.]
1. You pay more than the first month’s rent. You have to lay down a rather large sum of money in the beginning to get things moving with a single-family home rental. To start, you’ll need to set aside money for application fees. Depending on the area where you live, the fees can range anywhere from $35 to $100. Some states set limits on the amount a landlord can charge for application fees, some don’t. Do your research before you start the application process. Application fees are nonrefundable.
After your application is approved, at minimum you’ll need to pay a security deposit and first month’s rent before you move in. In some cases, you’ll be required to pay the last month’s rent up front as well. Other charges you might incur include cleaning fees and pet deposits.
2. You need to plan for utilities. Once you know which utilities you’ll be responsible for, you’ll have to call your local water, gas and electric companies to arrange to have them turned on by your move-in date. This might take a few days, and if you’ve never had an electric, water or gas bill in your name, you may have to pay the proper deposits. So, remember to allow a little extra time and money for this.
[Read: Should You Use a Real Estate Agent to Find Your Next Rental?]
3. You should know how to read rental contracts. A rental agreement is written to protect both the landlord and the tenant, so make sure you understand all the stipulations it outlines before you sign.
“There are usually consequences to a tenant if they fail to abide by the terms of that lease. For example, many first-time tenants are surprised to learn that there are specific notification procedures that they must follow with the landlord for ending the lease term. Typically, a tenant can’t just move out whenever they want without owing additional rent,” says Duane Drozdowski, senior vice president & residential division manager of Property Management Inc.
Also, don’t just assume you can move in and paint the walls whatever color you like, or change out those low-hanging ceiling fans for fixtures you won’t bump your head on. Most rental leases require tenants to obtain written permission from the landlord before making such changes. If you don’t have permission and make changes anyway, you violate the lease, which can be grounds for eviction.
With written permission, however, you’ll have clear instructions how to proceed with the upgrades to ensure you incur no damages and how, or if, you’ll be reimbursed for the work you do.
4. Good credit doesn’t guarantee your application will be accepted. A good credit score is a great thing to have, but it doesn’t guarantee your application will be accepted. Some landlords will pass over a great credit score for a mediocre score with a stellar recommendation from a previous landlord.
Also, it’s always a good idea to ask if the landlord has a screening checklist for applicants. It doesn’t make sense to spend money and time on an application you don’t qualify for.
For example, some landlords have a minimum income requirement — two-and-a-half times the rent, for example. If you find out what that is, and you don’t meet that requirement, then you can skip the application and its fee.
[Read: 7 Things Renters Can Do to Recoup Their Security Deposit.]
5. You should expect an inspection. It’s not uncommon for landlords to perform occasional inspections to see how well you’re taking care of your rental. Regularly clean your home and take care not to let spills become stains. One stain is all it takes for an entire room’s carpet to need replacing, and that cost could cause you to lose your security deposit.
This checklist is a good place to start before you set out to rent a home, but it’s not a list of all things to consider. Be sure to think things through and ask your prospective landlord the right questions before you sign a lease.
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5 Things You Should Know Before Renting Your First House originally appeared on usnews.com
