Top 10 Mistakes to Avoid When Renting Your First Apartment

Renting your first apartment is an exciting milestone, but it can also be overwhelming. With so many details to consider, it’s easy to make mistakes that could lead to financial strain or an uncomfortable living situation. To help you avoid common pitfalls, here are the top 10 mistakes to steer clear of when renting your first apartment.

1. Not Setting a Realistic Budget

One of the biggest mistakes first-time renters make is not setting a realistic budget. Before you start your search, determine how much you can afford to spend on rent each month. A common rule of thumb is to allocate no more than 30% of your income to rent. Don’t forget to factor in additional expenses like utilities, internet, and renter’s insurance. Use a rent calculator to help you set a budget that fits your financial situation.

ApartmentList has a great blog on how to budget for your first apartment, along with a checklist and tips to help get you started.

2. Skipping the Apartment Tour

Photos can be deceiving, so it’s crucial to tour an apartment in person before signing a lease. During the tour, check for any signs of damage, assess the noise level, and ensure that all appliances are in working order. If you’re renting long-distance and can’t visit in person, ask for a virtual tour or video walkthrough.

3. Not Reading the Lease Carefully

The lease is a legally binding document, so it’s essential to read it carefully before signing. Pay attention to details like the lease term, rent amount, due date, late fees, and any restrictions on pets or guests. If anything is unclear or concerning, don’t hesitate to ask for clarification or negotiate the terms. For tips on what to look for in a lease, visit LegalZoom’s guide.

4. Overlooking the Security Deposit Terms

Security deposits are standard practice, but it’s important to understand the terms under which your deposit will be returned. Make sure the lease outlines how much is required, what it covers, and the conditions for a full refund. Take photos of the apartment when you move in to document its condition, which can protect you from unfair deductions when you move out.

5. Ignoring the Commute

A lower rent might seem attractive, but if it comes with a long or inconvenient commute, it could impact your quality of life. Consider the distance to work, school, or other essential destinations and factor in the cost and time associated with commuting. Use Google Maps to estimate your daily commute from potential apartments.

6. Not Checking the Neighborhood

The apartment itself isn’t the only factor to consider—neighborhood matters too. Research the area to ensure it meets your needs for safety, amenities, and lifestyle. Visit at different times of the day to get a sense of the community and look up crime rates on sites like NeighborhoodScout.

7. Forgetting to Budget for Utilities

In some cases, utilities are included in the rent, but often they are not. Make sure you understand what utilities you are responsible for and budget accordingly. This could include electricity, gas, water, trash, and internet. Ask the landlord or property manager for an estimate of monthly utility costs.

8. Not Considering Parking

Parking can be a significant issue in some areas, especially in cities. Make sure you understand the parking situation before signing a lease. Is there a designated parking spot, and is it included in the rent, or is there an additional fee? If street parking is your only option, consider the availability and safety of parking in the area.

9. Not Getting Renter’s Insurance

Renter’s insurance is a must-have, as it protects your personal belongings in case of theft, fire, or other disasters. It’s relatively inexpensive, often costing less than $20 a month. Some landlords may even require it as part of your lease agreement. You can compare policies and find the best rates on NerdWallet.

10. Not Preparing for Moving Costs

Moving can be more expensive than you might expect, especially if you hire movers. Be sure to budget for moving expenses, including truck rental, moving supplies, and any fees associated with moving into your new apartment, such as application fees or first-month rent. For tips on saving money during your move, visit Moving.com’s cost-saving tips.