You are setting out on your first great adventure of living on your own! (Or with a roommate.) Before you call up a property manager to view your first apartment, make sure you are ready and have done these things! If you have, then great. You are ready for the next step towards living on your own.
Follow these steps and you’ll be ready to move into your apartment in no time.
Consider the Cost
How much apartment can you afford?
When apartment hunting, the biggest thing you need to consider is the cost of rent and utilities. A general guideline is that your housing (rent or mortgage) should not be more than 1/3 of your monthly pay.
If you make $4,000 a month, that means $1,300/month. Dave Ramsey recommends 25% of your take home pay to stay on the conservative side. If you take home $3,000 a month after taxes, that equates to a rent payment of $750/month.
This may feel like less but this ensures that not all of your money is tied up in your housing. It frees you up to do other things like pay off debt, build emergency savings, and save for a down payment.
Some apartments include heat or water in the rent. Otherwise, that responsibility falls to you. Bigger places = higher cost of utilities. Older places = higher cost of utilities. Sometimes it’s better financially to spend a little more in rent for a newer and more efficient place if it means you have significant savings in utilities.
- Related: How to Save Money on Your Water Bill (apartment friendly!)
If apartment A costs $700/month with utilities averaging $200/month, and apartment B costs $800/month which includes water and the remaining utilities average around $50/month, it would be better to go with apartment B. The initial rent may be higher but once you add in utilities, apartment B is cheaper.
- Related: 18 Ways to Stay Warm Without Turning up the Heat (apartment friendly!)
The power company may have an option for budget billing. This is where you pay the same amount each month instead of having really high bills in the summer/winter and low bills in the fall/spring.
The energy company averages out the usage over the past year for the apartment and that is your bill. They reevaluate your usage every 6 months and adjust your bill accordingly.
You never pay more or less than what you actually use. Predictable bills make budgeting easier.
- Related: How to Stay Cool Without Air Conditioning (apartment friendly!)
The Hunt
Now that you have an idea of how much you can afford, it is time for the hunt.
Here is a list of places you can look for apartments:
- Apartments.com
- Zillow
- Facebook Marketplace under Rentals
- Craigslist under Housing
- HotPads.com
- Classifieds in the newspaper
- Drive around town and look for “For Rent” signs
- Word of mouth
- And more…
Go through these websites and make a list of the apartments that catch your eye. You can sort by filter but look through them all just to get a good idea of how far your money will go.
Things like a garage, dishwasher, and in unit washer/dryer come at a premium price. When starting out, you may not be able to afford a place with all the amenities you were used to at your parents’ house and that’s okay!
You are just starting out.
The closer you get to a big city center, the higher your rent will be. You may want/need to consider getting a roommate to help combat the cost of living.
Location, location, location. Though you may not be concerned with resale value, location is still important to consider when looking for an apartment. Proximity to work or your frequented places is key.
Less commute = more time in the evenings for other activities. If you can score a place within walking distance to work, you would be able to cut down on transportation costs, get a light exercise in, and #savetheenvironment.
The Viewing
Call each place first and set up an appointment to view. Management has to give current tenants a 24 hour notice before showing their apartment so you most likely won’t be able to get in the same day.
And although the management has “open hours”, they are rarely adhered to, or they could be out “managing the apartment”. One apartment complex we lived at had management hours of 8-5 but the manager had a different day job from 8-5 and only managed on nights and weekends.
All that to say, if you just show up during normal business hours, your chances of seeing an apartment on the spot are pretty low.
Bring your parents or a good friend along with you and set up a day of apartment viewings! It’s good to have someone with you to help bounce furniture arrangement ideas off of. Bring a paper + pen to take notes and a tape measure.
If you have a large item you plan on taking with you, like a king sized bed, measure the bedroom and doorways to ensure it will fit. The more apartment options you have to choose from, the better. It lowers the risk of settling for the first one you see.
Questions to Ask
Here are a list of questions to ask when viewing each apartment:
How much do utilities cost?
What are the lease terms?
Guest Policy?
Pet Policy?
How much is due when the lease is signed?
Require renters insurance?
How often and by how much does rent go up?
Off-street parking?
How much notice needs to be given when moving out?
Is there a time when moving out is not permitted?
Is painting or using nails permitted?
Are updates to the complex planned?
How are emergency repairs handled?
Check out more in depth questions here!
Head over to my Etsy shop and grab your checklist to print out and take with you on apartment tours! As a thank you to my readers, I’m offering a 10% discount when you use the code: READER or use this link!
The Application
After appointments and searching, you’ve found your dream apartment! It’s time to submit an application. While viewing an apartment, the landlord will most likely hand you an application to fill out or at least tell you where you can access it.
Know your credit score. On an apartment application, there will be a place to list your current open accounts: credit cards and existing loans. They are looking for some type of credit history that will show you can pay bills on time. Some apartments have a credit score minimum.
More often than not property management will look at your credit history. This will count as a “hard check” and counts against your credit, as it will stay on your credit history for the next 3 years.
This means that you need to read the applications very carefully and only submit the ones that will check your credit score if you are serious about that place. One “hard check” isn’t the end of the world but a lot of these will lower your score significantly.
Property managers will also want to know your source(s) of income and/or what you have in savings. They want proof that you can actually pay rent. Some will try to stick around the 30% rule: no more than 30% of your income going to rent.
If your income or credit history is not sufficient in their eyes, you may need a co-signer. This is someone who accepts responsibility for your rent if you are unable to pay.
Some apartments also require an application fee (we’ve paid anywhere from $100-$500 in application fees) which is usually applied to your first month’s rent but forfeited if you turn down the apartment. Only submit the applications with fees if you are sure of that place!
Along with the application fee, you need to pay a security deposit. Some landlords want your first month’s rent while others want two on top of the rent you pay. This will be returned to you when you leave if your apartment is in good order.
Once you’ve found an apartment in your budget and submitted your application + fee, then you wait. The landlord is running your credit and probably doing a background check.
If all goes well, you will get that phone call saying you are approved. The next step is to sign the lease and pay your security deposit. Then you will be ready to move in.
Congratulations, you are now a renter!
What’s Next?
Check out these Beginner’s Guide series:
A Beginner’s Guide: Emergency Fund
A Beginner’s Guide: How to Get Out of Debt
F.I.R.E Financial Independence for Beginners
Things to do Before Living On Your Own
15 Questions to Ask Before Renting an Apartment
Renting or Buying? When Renting Makes Cents
Looking for a way to save up for your security deposit? Check out this post.
Have an apartment AND a toddler? You are not alone! Check out my YouTube channel to see how we manage apartment life with a toddler:
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