First Person: Apartment Rental Tips for Young Adults

Having rented many apartments and homes over the years, I still look back furiously at my first rental hovel, where I spent a winter without heat because the landlord insisted that heating wasn't part of the lease. Just as I was then, young adults on tight budgets are often tempted to jump at a bargain, but experience has taught me that bargains too often cost you a fortune, in one way or another. To help young adults make the most of their housing budget, here are the apartment rental tips I follow.

Upfront Rent

Not to be confused with deposits, upfront rent amounts should be stated in the lease (not in a verbal agreement). Typically, rental complexes will require first and last month's rent. Private landlords, however, may request as much as 6 to 12 months upfront rent in an effort to protect themselves against costly eviction procedures, should the tenant default. The rental tip to remember is this: A rental complex is likely to require less upfront rent.

Rental Deposits

It's important to distinguish between non-refundable and refundable rental deposits. Non-refundable deposits are typically the same across rental complexes and they address any repairs or cleaning costs the landlord expects to have when the tenant leaves (such deposits also include pet deposits). Refundable deposits are typically larger and are charged by private landlords against costs they may incur through property damage. Consider not only the rent amount the landlord charges but any deposits and whether they are refundable.

Rent Lose Due to Foreclosure

The housing crisis has introduced a new problem for renters that young adults should consider. There are homeowners who collect rent from tenants but fail to pay the mortgage on their end. In such cases, when the bank forecloses on the property, the renter is forced to leave although his rent is up to date. A rental complex or building offers a safer alternative than a privately let apartment or home.

Lease Terms

A lease should be a straightforward and short document laying out the terms of agreement between the landlord and tenant. Rent complexes typically have a 1 to 3 page lease with a clear statement of obligations from both parties. Private landlords may have more complicated leases. Be sure to read the entire lease and ask for advice from an experienced friend or lawyer. Focus on the landlord obligations as to maintenance and repairs. Pay close attention to the lease termination clause and any penalties associated with early termination. A simple lease is better, but, simple or convoluted, you should read every lease carefully before signing the dotted line.

Utilities

Rental complexes will typically include utilities with the overall monthly rent. Many private landlords do the same, especially in college towns where young adults are living on a tight budget. Be sure to confirm which utilities are covered in the lease, for example: are both water and electricity covered? And what about internet and phone service? If utilities are not covered in the lease, ask to see utility statements from a period when the residence was fully occupied. This will help you determine the true cost of living in the rental. Make sure the lease addresses the subject of who pays for utilities.

Parking or Garage Fees

Additional costs may be associated with parking a vehicle or sheltering it in a garage. Many apartment complexes offer free outdoor parking but will charge a garage rental fee on a monthly basis. This point may apply to private landlords as well, as with apartments in busy cities, though in the rental of single family homes a garage is typically included. Don't assume that your parking accommodations comes with the lease.

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