First-time renter? What you need to know, from a real estate agent | Adulting
Maddie McGay, NorthJersey.com
6 min read
EDITOR'S NOTE: This is the third in an occasional series that addresses the high cost of becoming an independent adult in New Jersey. The expenses of housing, dining, entertainment, paying back college loans and more make it difficult for new college graduates to leave home. Have a good idea for a story for this series? Email: Sportelli@northjersey.com.
Looking for a place to rent is stressful at any level, but it is even more so when it is your first time doing it.
What area should I live in? How much can I expect to pay? What usually comes with an apartment rental?
There’s an endless list of questions new renters may have when considering a place to live. Before getting locked into a lengthy lease, you’ll want to make sure you know what to expect.
Brian Haydon, a real estate agent with Prominent Properties Sotheby’s International Realty, helps us break down what first-time renters need to know before searching for and committing to their first rental.
“It’s easy to get lost in the sea of things. Within the first hour, you could have gotten 30 or 40 emails already asking if it’s available, but you just went live with the listing,” he said. “Or you’re having an open house because you want to make sure that as many folks as possible have a shot at checking a unit out.”
This competition means that landlords really have their pick of the litter, so it’s important to stand out and be prepared.
Standing out as a prospective tenant
Knowing the basics of what landlords are looking for is the first thing.
“They’ll be looking for someone that is an adult, someone that is going to be responsible and not impossible to deal with and get their rent from,” Haydon said. “Overwhelmingly, my experience is that they just really want someone that’s able to appreciate the property and be respectful of it.”
He said that to ensure you’ll be that responsible tenant, you want to make sure you have a full understanding of your finances and a manageable budget.
Is your salary enough to cover every single expense? Have you factored in utilities? Do you have other big bills you are responsible for, like a car payment and car insurance?
Especially if moving to a new area with unfamiliar costs of living, Haydon said, you should know how delicate your budget is.
If you are living with a roommate, the combined annual salary might not meet the minimum income requirements a landlord has to rent their property. Haydon said it is also good to recognize whether you’ll need a parent or relative to act as a cosigner to help you meet that requirement.
Once all of that is straightened out, he said, make sure to have all your documentation prepared. Getting together income tax forms and credit reports ahead of time, for example, will help you stand out when applying.
Another way to stand out, especially because of the region’s competitive rental market, is being persistent and making yourself known.
“I would definitely call. If I had to, I’d leave a voicemail and a follow-up text, because you’re one of 35 otherwise,” he said. “You have the opportunity to introduce yourself because, to some degree, you’re lending credibility that you’re not a kook.”
Instead of blindly mass-applying to listings in hopes of getting a real estate agent or landlord to bite, Haydon said to make sure to reach out directly and follow up.
Understanding deposits and additional fees
Also consider the fees and deposits you will have to pay when applying for an apartment, and when signing your lease.
Depending on the type of unit — this is most common among bigger apartment complexes with a greater influx of applicants — you may have to pay an application fee. These fees are usually used to cover the costs of screening potential tenants through background and credit checks.
New Jersey does not have regulations that set how much landlords or listing agents can charge for an application fee. The fee is sometimes refundable if you do not get the apartment, so make sure you ask ahead of time if that is not made clear in the listing description.
Units that are managed by a professional are usually subject to broker or agent fees.
“It’s typical that there’s a one-month commission that’s paid in the event that there’s a broker that’s representing the property,” Haydon said.
In other circumstances, if a listing is handled by a private landlord, then there is usually no additional fee to pay.
The security deposit is another fee you will have to pay, but this one is almost always refundable. According to Haydon, tenants cannot be charged more than 1½ months’ rent for a deposit.
These deposits are held by the landlord until the end of your lease in case you cause the need for any major repairs to the unit. If you leave the unit the way you found it once your lease is over, you can expect to get that deposit back in full.
If a unit allows pets, there may be a monthly pet fee — or pet rent — for your furry friend. Make sure you always ask if this is included in the terms of the lease, if necessary, and how much it may cost.
Beware of scams
“There are some bad actors out there, and scams, so it does come down to common sense,” Haydon said. “But I also understand that we want to believe in things that are very important to us.”
Basically, if something seems too good to be true, it just might be.
When it comes to the safety aspects of scams, make sure you research the area and the landlord before agreeing to meet somewhere. Also, always be sure to let someone know where you’ll be, or even bring a friend with you, when going to tour a unit.
You also should never be asked to pay anything before viewing or applying for a unit that is listed for rent. Additionally, you should never be asked to pay with or send gift cards for any sort of rental transactions.
“If you’re a first-time renter, typically speaking, you’re a younger person, you have the internet,” Haydon said. “It’s your strongest resource in making sure that you are as up-to-date as you can be, to make sure that you’re protected and that you can be successful.”
