Signing your lease: advice for first-time renters

Is it your first time renting an apartment? If you're a new renter, you’re probably bouncing between feeling excited and overwhelmed or nervous. But fear not! Here at Perch, we’ve compiled this quick guide specifically for new renters. Keep reading for a crash course on everything you need to know before you sign your first lease.

What exactly is a lease?

When you sign a lease, you are signing a legally-binding contract that makes you responsible for all terms and conditions outlined in the document. This can include information about paying your rent on time, altering your apartment, and avoiding late fees. While the lease agreement may seem extensive, it’s imperative that you read it carefully. You don’t want to pass over an important piece of information in the fine print. 

These same rules apply if you’re choosing to live with a roommate; both parties are legally responsible for upholding their end of the lease agreement. Don’t be shy to ask questions and get clarification on any language you don’t understand. Don't know what questions to ask before signing a lease? Working with a free apartment locating service can be super helpful in reviewing agreements and asking your leasing agents the right questions.

Paying your rent

Apartment properties typically tend to look for applicants with an income that is at least three times the amount of your monthly rent. This way, apartments can minimize their risk by making sure you can afford to make your monthly payments.

However, just because someone doesn’t make three times the monthly payment doesn’t necessarily mean their application will be denied. The property may just require more financial information or suggest that you have a co-signer on your lease. For more information about budgeting as a new renter, read our post here.

Should I get a co-signer?

A co-signer is typically someone with a better credit score and rental history that makes around five times more than your monthly rent. Co-signers basically act as an extra layer of protection if, for some reason, you can’t make your payment or compromise the lease agreement in some other way. 

While co-signers might not necessarily be living as a tenant, they do hold just as much legal responsibility as a renter. This is important to remember, especially if you are renting with a roommate. If your roommate causes damage to the apartment and doesn’t take responsibility for the damage, you and your co-signer are still responsible for dealing with the aftermath.

Fluctuating prices

The apartment market is an ever-changing flow of prices, no matter where you’re looking to move. In fact, apartment prices can actually change on a daily basis. Groups of people tend to move in and out of areas at certain times throughout the year, a phenomenon known as seasonality. During winter and fall seasons, prices tend to be lower because these are usually less popular times of year for moving.

Location, location, location

Do not underestimate the importance of location when it comes to choosing an apartment. Before signing an apartment lease, consider where it is located in relation to your work, grocery stores, shopping, etc. It is also important to remember that depending on the location of your apartment, you may be paying a bit more for the convenience of being close to a city’s hot spots. However, living further away from your frequently-visited spots may lead to a lower monthly rent, allowing you to allocate more funds toward commuting costs.

Insurance is a must

Virtually all apartment complexes require tenants to provide proof of renter’s insurance before their move-in date. This ensures that your personal property is covered in case of an emergency, such as your apartment flooding (property insurance only covers structural damage to the space, not damage to personal property.) 

Renter’s insurance is relatively easy to acquire and is often quite inexpensive. There are numerous options to choose from, so be sure to do some research to determine what works best for you.

What do I need to sign a lease?

The day is finally here! It’s time to finally sign your first lease. To ensure you’re prepared to put pen to paper, remember to bring the following items:

• Proof of your renter’s insurance
• Proof of income/employment
• A photo ID (ex., Driver’s license)
• License plate numbers and registration (for parking information)

Some buildings may request a reference letter if you’re new to renting, but this isn’t always the case. You might also be asked to put down a security deposit, pet rent, or other fees, depending on your property. 

Still want some help?

Read the blog, but still want some help as a new renter? No problem! Perch’s free apartment locating services are here to help. At Perch, our team of locating geniuses is here to help you find your dream apartment, no matter what that means to you. We’re even there to help you with the application process and make sure you get all your questions answered. Fill out our contact form to get started on your apartment search today. We can’t wait to see where you land!