First Person: Don't Overlook Financial Issues When Renting an Apartment

When renting an apartment, you may be most concerned about whether it its size, location, layout, and amenities are right for you. While the aesthetics of an apartment are important, don't overlook the financial issues associated with renting. Be sure to ask questions about these five issues before signing a lease.

Security Deposit. Is there a security deposit and how much is it? What are the requirements to get the security deposit back when you move out if you leave the apartment in good condition? Are there are "fees" that will automatically be deducted from the security deposit, such as a cleaning fee, and, if so, how much is it.

Lease. What are the terms of the lease? Must you sign a long-term lease (a year or more) or can you choose a month-to-month lease? Can you break the lease before it expires and, if you can, what are the penalties? Can you sublet you apartment and what are the procedures for and limitations on subletting? When and by how much can the rent be raised, are there any limits to rent hikes (in amount and frequency), and what has been the history of rent increases for the building, development or unit you are renting? Also, if you sign a longer-than-usual lease, can you negotiate a fixed rent for the term of the lease or limited increases in rent?

Utilities, Water, Etc. What does the rent include? Does it include utilities and water and is there a thermostat in your apartment so that you can control the temperature yourself? If utilities are not included, what has been the average utility bill for your apartment over the past two years? Is cable included in the rent?

Security. What is the security in the apartment building where you are considering renting and in the apartment itself? Is there an alarm system in your apartment and, if not, can you have one installed at your expense? Have there been any security problems in the building or apartment complex (check with the police or your insurance agent for this information)? You should purchase renters insurance when you rent an apartment and two of the factors that will affect your premium is how secure your apartment is and where it is located.

You may be asked to provide references before you rent an apartment, and you should ask your prospective landlord for references as well. When talking to references (ideally tenants or prior tenants), among other things, find out how responsive the landlord (or super) is when there are plumbing, electrical or other serious problems; how well the property is maintained overall; whether there have been security problems; and how much the rent has been going up.

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