10 Common Mistakes Renters Make & How to Avoid Them

Renting has become more and more popular as people start to rent for the flexibility and lifestyle bonuses, rather than out of necessity. Also, with house prices reaching record amounts and other homeownership-related costs on the rise, more Americans than ever are choosing to rent long term.

There are many benefits to renting, such as having a landlord pay property taxes and a maintenance crew to make updates and repairs as needed. But sometimes, in a rush to snap up a residence that looks good on paper, renters may overlook certain pitfalls that could be costly in the future.

Here are 10 common mistakes renters make and how you can avoid them.

Not Giving Price Enough Consideration

Before beginning an apartment search, take a thorough look at your budget to determine what you can afford to pay for rent every month. A general rule of thumb is to make sure you earn 2.5 times more than you pay in rent, but you should also consider other monthly expenses, such as student loans or car payments.

Once you begin your search, find out what expenses are included with the rent and what will be added on as extras. Also, be prepared for rent to grow over time as a result of increased property values and inflation. Finally, research the rental market in the city and metro as well to give yourself an idea of what to expect.

Renting Sight Unseen

Thanks to online listings, professional photography, and virtual tours, it has never been easier to look for a new home without leaving the comfort of your couch. While these tools can help narrow down your search, it’s still a good idea to tour a rental property before signing a lease.

During an in-person tour, you can get a better feel for how the property is maintained. Look for evidence of water damage, mold, low water pressure, or poorly insulated windows. These issues will not only make your stay uncomfortable, but they could end up leaving you with higher utility bills.

Prioritizing Square Footage Over the Layout

It’s not uncommon for a home to boast large square footage but have a layout that won’t suit your needs. During an in-person tour, you will be able to get a true feel for the size of the space. What might look spacious in a video could end up being cozier, which means your furniture and belongings won’t fit. Or, if you need a particular layout of your rooms, make sure to check how rooms are connected and picture your daily routines in the apartment.

Forgetting to Check Out the Neighborhood

Along with taking a close look at the rental property, be sure to scope out your neighborhood. Take special note of how close you are to transportation, grocery stores, restaurants, and other conveniences. It’s better to know in advance if you will have a long commute to work.

Ignoring Amenities

Whether you are renting an apartment from a large property management company or from an independent investor, be sure to take a close look at what amenities are included with your rental property.

While amenities such as swimming pools and fitness centers may be the flashiest, take a particularly close look at laundry facilities. This is especially important if you will be sharing communal laundry machines. Find out how often the machines are maintained and how much it typically costs to complete a load of laundry so you can include that in your budget.

Not Communicating Well with the Landlord

Before signing a lease, make sure you know how to get in touch with your landlord. At the same time, be sure to understand the terms of your rental agreement and who is responsible for what. This can include everything from who will change light bulbs to who deals with clogged drains.

By establishing an open line of communication from the start, you can feel more comfortable reaching out to your landlord as issues come up.

Not Getting Renters Insurance

Most landlords have insurance to protect their property in case of fire or natural disaster, but those policies won’t cover your personal belongings. Renters insurance is relatively inexpensive and can cover losses as well as free you from liability in case someone is injured while visiting your home.

Not Documenting Condition During Move-in

Before you move in your belongings, do a thorough walk-through of your newly rented home and make a note of any signs of damage or wear and tear. In addition to writing all of this down, take photographs or videos as a backup.

Creating this written and visual condition report will help you settle any potential disputes with your landlord when you move out. Failure to do so could end up costing you your deposit or trigger a small claims dispute.

Paying Rent Late

Paying your rent late can not only negatively impact your credit score and lead to eviction, but it could cost you financially. Some landlords charge a late fee that costs anywhere from $75 to $200 per day.

If an emergency comes up and you will be late with your rent, be sure to let your landlord know as soon as possible. You may be able to work something out with them.

Taking on Roommates Without an Agreement

You may decide to take a roommate to share housing costs. While this can be a good way to save money over time, doing so without a written agreement in advance can cause frustration or heartache over time.

A roommate agreement should include monetary expectations, such as when and how rent and utilities will be paid. You should also determine how housework will be completed and whether food and other supplies are communal. It is also a good idea to set ground rules about visitors and quiet hours.

By setting expectations up front, you can avoid conflicts that could make your home a toxic place to be.