Renting is proving an ever more popular option, especially for young people who are moving into larger cities in search of work after college. Many people rent out commercial or residential properties and make quite a good living doing so. However, for a renter, the apartment search can be incredibly daunting, especially if they don’t know people in the area, can’t afford a luxury apartment or are looking for an inexpensive apartment rental. In some cases, property management companies can be a useful asset, as they may deal with a large number of properties and a broker can show a potential renter many different properties associated with that property management company and their landlord.
Why Are So Many People Renting?
For people who are more in flux, it’s more convenient to simply rent a place rather than make the investment in a home. For young people who are looking at temporary jobs or who have a job that requires a lot of travel or moving, renting can be a great flexible option. For older people, renting an apartment can be a welcome downsizing move and takes worrying about property maintenance (such as the yard or fixing the house up) off their hands. For others, an apartment might be the most convenient and central location to work, or the only affordable option around them.
What Things Should I Consider When Renting?
The New York Times released a graph that showed many landlords asking for a rental deposit equivalent to a month’s rent. Not bad, when you consider that a down payment for a house is at least 5% of the home’s value. Renters may also only pay for some of the utilities — gas or electric — and many don’t have to worry about snow or leaf removal, mowing the property, or fixing appliances.
However, renters need to make sure their income meets the landlord’s demands and that they have enough money up front to pay a broker’s fee, a security deposit, and first and last month’s rent. The up front costs can seem high, although the price will usually decrease as time goes on.
Renters should also look into renter’s insurance, which covers their valuables up to a certain amount for a fee every month. The Insurance Agents and Brokers of America report that the average cost is only about $12 a month, so it’s a very economical plan to purchase and can come in handy in case of emergency. Some landlords or property management companies also require that renters buy renter’s insurance before moving in.
It’s also important to consider the area you’re moving into and how convenient public transportation or highways are for you to get to. Although a fifteen minute walk might not be so bad in the summer, do you want to make that same trek in the winter? Will you feel safe leaving your car on the curb? Is there even room for it? See what stores are around you — grocery, pharmacy, etc., since going out of your way for those necessities can also be a hassle.
Renting can be a lower cost and more flexible option that buying a home, but make sure you consider all your options before making a decision.