First-Time Renter’s Guide: How to Choose an Apartment or Rental Home

Whether you're branching out on your own for the first time or starting a new chapter of your life, you're ready to claim your first rental home. With some planning and foresight, you can find the perfect place to make your own. To get started, you'll want to consider your budget, the best location, amenities, how to make your application stand out and how to protect yourself financially and legally. Get valuable expert insights, resources and tips to nail your apartment hunt.

Moving into your first apartment is a significant step into independence and adulthood. It may also be stressful if the process is new to you. Taking time to plan and assess your budget and needs will help you manage the apartment hunt with ease. To get started, consider a few essential factors below.

In your search, consider the type of management. Identifying this can also help you narrow down the ideal location you may want to live in and wants vs. needs when you tour the place. The three most common managements you may encounter are large complexes, property management companies and independent landlords.

Another factor to consider in your search is the type of rental. Depending on how small or large of a space you would like to live in, it can help you budget your monthly rent. First, determine how many people or pets will be living with you. Large spaces, such as single-family homes, can be great to have a few roommates and you can share the rent. Small spaces, such as an apartment unit, may be just enough space for you and your dog.

An apartment is typically a large building with individual residential units. Depending the apartment complex, you may be able to find different types of units, such as a one bedroom with one bath, or two bedrooms with two baths.

A townhouse is a multi-floor home conjoined to another but has its own entrance. A condo is a building or complex of buildings made up of individually-owned units.

A duplex is one building that houses two units, and a triplex houses three. Each unit can be side-by-side or on top of the other. To count as a duplex or a triplex, the building must share a common wall and roof structure.

A single-family dwelling is a stand-alone residential home that sits on its own parcel of land. Many single-family homes are detached, meaning they do not share a common wall with another unit. Some can be attached.

A second small-sized dwelling attached or near a larger property. It may be an apartment over a garage, a tiny cottage in a backyard or a basement apartment.

A shared-housing arrangement in which residents have individual rooms in a house but share the common areas like the kitchen, living room and laundry room.

You found an ideal place that checks off everything on your first apartment checklist, and you're on your way to living in your first rental home. Before you fill out the application, pay that application fee or sign the lease or rental agreement, there are some crucial things you need to know first as a first-time renter.

When you meet with your landlord, ask as many questions as you need to. There are several key things you should ask before renting, especially if you don't understand something in the agreement. Make sure you are fully aware of it before you sign. Here are a few common questions you might consider asking.

As you prepare to tour your potential new home, you may also want to take a look around the property — after all, the area could be your neighborhood for the next year. Here are items to examine.

The neighborhood is just as important as the apartment. What’s the crime level? Is there an affordable grocery store in the area? Is it a reasonable commute from your job? Scope it out during the day and night to get a feel for the area.

Some items are standard — and essential — like an oven and a stove. Others you may be able to do without like a dishwasher. Assess what matters most to you: In-unit laundry facilities? Ample parking? High-speed internet? Security cameras?

Check for cracks, structural damage and evidence of water leaks. Examine the paint job: There should be no drips or chips along the wall. Make sure every outlet works and they are accessible. There should be smoke detectors near or in each room. Check that blinds and shades are working correctly and have no damage. Run your hand along the windows and doors to feel for any leaks or drafts. Inspect the flooring (carpet or wood) for stains or holes. Make sure the toilets flush properly and check all the faucets for leaks.

The common areas such as the gym, business center and pool should be clean and well-maintained. Is the equipment working correctly? Is the landscaping overgrown? Is there ample parking? In general, state laws require landlords to keep common areas clean, safe and in good repair.

The cost of your apartment goes beyond the rent. There are other items you should factor into whether you can afford to live there, including the cost of utilities, cable, internet service, water, trash collection and pet fees that may include a one-time pet deposit and monthly pet rent. The price of each item will vary and depends on the individual property or landlord. Some properties may also charge for parking and using garages and storage units. Ask upfront about these costs before signing a lease.

Tenants are generally required to sign a lease before moving into an apartment. A lease is a contract that gives a tenant the right to live in a property for a fixed period such as three, six or 12 months. It also outlines payment procedures, late fees, rules regarding pets, guidelines on moving in and moving out, details on terminating the lease early, restrictions on remodeling or decor, how repairs are handled and causes for eviction.

Once you feel comfortable with the property, the landlord and the terms and conditions of the lease, it's time to make sure you meet the qualification requirements for your new home. Although the rental application forms vary, they will generally involve similar steps.

Take a look at the documentation and rental requirements you may need below.

• Proof of income: This helps verify that you have a steady income and can afford the rent cost. Proof can be a letter from an employer, pay stub, bank statement or tax return.
• Proof of identity: A driver's license, passport or other proof of identity will help the apartment verify that you’re you.
• Recommendation or reference: A reference from a previous or current landlord, property manager, supervisor or colleague will help confirm that you’re reliable, responsible, financially stable and have a record of on-time rent payments.

• Credit check: You'll have to give permission to the rental property to access your credit report. They'll want to check for indicators that you're financially dependable such as on-time payments, and your credit score will reflect that.
• Application fees: You'll need to fill out a form with your personal information, including employment and income, background and emergency contacts. According to Zillow Group's Consumer Housing Trend Report, the application fee, which typically ranges around $50, covers the credit and background checks.
• Deposit: This fixed fee is paid one time and covers damages made to the apartment after the tenant has moved out. It is usually refundable if there are no damages.
• Rental history: This includes former addresses, payment history, evictions, criminal history, your credit score and other data to help a landlord determine your suitability as a tenant.

In competitive rental markets like Raleigh, North Carolina and Los Angeles, California, where the vacancy rate was 2.2% and 2.3% respectively in the fourth quarter of 2020, using a little ingenuity to make yourself stand out can pay off. Think of it like applying for a job.

• Be presentable for any meetings or tours, and create a rental resume with your educational background, employment history, prior rental history and any pets or people who will live with you. Highlight why you're interested in the rental property. Your application is your opportunity to give the landlord a clear picture of who you are and emphasize why you'll be a great tenant.
• You may want to include letters of references from previous landlords who can speak to your reliability as a tenant and ability to take good care of a property.
• If you have little to no credit history, bad credit or no previous rental history, coming prepared with a co-signer will assure the landlord that you have a reliable source for rent payment. Just make sure you choose someone who has a good credit history.
• If you can afford it, offering to pay a few months’ rent in advance can showcase that you're financially secure and help push you to the front of the line.

Congratulations! You've landed the lease on your first rental property. What's next? It's time to prepare for move-in day. Here are a few key insights on setting up the utilities, arranging insurance and picking suitable moving materials to make the transition to your new place easier.

Some apartments provide the trash and water service as part of your rent but require you to arrange your own gas and electric service. For others, you may have to handle all the utilities on your own.

Once you know what you're responsible for paying, the landlord should provide you the local utility companies' contact information. Try to call at least one week before you move in, and arrange to have your services turned on the day before your arrival. In some instances, you may pay a deposit for the electric company, internet or cable if you don't have a previous history with them.

Renters insurance is crucial for protection when renting. Many apartments require it because the landlord's insurance usually only covers the building. A tenant's renters insurance covers personal property loss or damage caused by theft, vandalism or fire. It also provides liability coverage, which pays for bodily injury and property damage caused by negligence — or a liability policy specifically for pets, like if your cat gets loose and scratches a neighbor, which leads to your neighbor requiring medical attention. Your insurance company can let you know how much renters insurance you need.

Before you settle into your new place, make sure you at least have the essentials on your first apartment checklist. You can always add more later.

• For your bedroom, make sure you have a mattress and bedding, pillows and curtains if there are no blinds so you can have privacy.
• Don't forget the wastebasket, toilet tissue, plunger and plenty of towels for the bathroom.
• Your kitchen should have utensils, plates, pots and pans, along with paper towels and dishwashing liquid.
• A TV stand, couch and coffee table will help the living room stay cozy.
• A laundry basket, laundry detergent, stain remover and all-purpose cleaner should cover you for cleaning supplies.

There are many expenses associated with moving — boxes shouldn't be one of them. Save money by asking local stores (grocery stores, dollar stores, book stores, liquor stores, etc.) if they have free boxes after they finish stocking. Consider moving during the offseason — usually October through April — when demand for moving services is low. Stock up on moving supplies like tape by buying in bulk and stocking up in advance when it's on sale.

Don’t forget to let your bank, insurance, credit card companies and any subscription services know that you’re moving and provide them your new address. Also, make sure to request that the post office forward your mail to your new address, which you can do online. Try to get this done at least two weeks in advance of your move.

There are many resources available to help you find affordable renting properties and moving-related expenses or rental assistance. From tools that connect you to local rental agents and listings to programs that improve renter education and offer financial aid, these organizations and programs can help you succeed as a first-time apartment renter.

You can also include a few tools or apps to help with finding and renting an apartment, like the Trulia, or Zillow app or similar, for example.

• Salvation Army: Salvation Army offers moving-related assistance for those who can show their low-income status and confirm what the aid is for (for example, a record of a security deposit or moving van rental confirmation). To apply, visit the Provide Shelter Page to find your local Salvation Army.
• The U.S. Department of Housing and Urban Development: This government organization provides a grant program aimed at preventing homelessness by helping people who are at risk for homelessness get into housing quickly.
• Emergency Solutions Grant: This grant program assists individuals and families to quickly regain stability in permanent housing after experiencing a housing crisis or homelessness.
• Zillow: This real estate app provides up-to-date listings for rent. It also has tools to help you determine your budget and connect with local real estate agents or property managers.
• HUD Resource Locator: This tool helps you find affordable housing opportunities near you.
• National Low Income Housing Coalition: This government organization provides a comprehensive list of state and local COVID-19 emergency rental assistance programs.
• Consumer Financial Protection Bureau: This organization's Find a Housing Counselor tool provides a list of counseling agencies and housing counselors throughout the country that can provide advice on buying a home, renting, defaults, foreclosures and credit issues.
• 2-1-1: In several communities, you can dial 2-1-1 on your phone to get access to information regarding various services and programs, including housing, employment and education opportunities in your local area. Even if calling is not available in your area, you can visit the website to get the same information.
• Modest Needs: This nonprofit provides short-term financial assistance to individuals and families with low incomes and are in temporary crises.
• Renters Insurance Statistics: This page analyzes renters insurance numbers by year.