Looking for an apartment isn’t always easy. In fact, finding an available rental, coping with a limited budget, and other factors can turn an otherwise exciting experience into a frustrating ordeal. A lot of things are out of your control. However, if you plan ahead, you’ll be able to focus your efforts and find a great apartment with less stress in less time. Here’s your worry-free plan for making it happen:

Identify Your Needs And Wants

Visiting apartment complexes without knowing what you’re looking for is a recipe for disappointment. Before you begin looking, think about factors that are important to you. If you’re planning on having a roommate, you’ll need 2 bedrooms. But, how important do you consider having your own bathroom? How large must your closet be? Is covered parking a “must-have” or “nice-to-have” item? The more closely you can identify the items you need and those you’re willing to sacrifice, the more easily you can focus your search.

Prepare A List Of Questions

It never fails. Apartment hunters think of important questions to ask the property manager after they leave the complex. Write your questions down ahead of time and take the list with you on your visits. You may want to ask about pets, neighborhood safety, noise levels, and how much sunshine a particular unit receives. It’s easy to forget your questions if they’re not in front of you. Write them down.

Don’t Get Distracted

The more time you spend looking for an apartment, the more distracted you’ll become. Out of sheer frustration, you may be willing to sacrifice items that you once considered “must-haves.” But, doing so may be a mistake, especially if you intend to live in your new apartment for years. Review your list of needs and wants. It’s fine to re-categorize them. Just make sure you’re actually willing to live with your changes.

Keep Notes

After you’ve seen 3 or 4 apartments, the details of each will start blending together. Soon, you won’t remember which unit had the fireplace and which had the gorgeous view. Take notes. Bring a pen and pad of paper with you. Write down the address, draw a quick floor plan, and list the pros and cons of each unit. If you’re really organized, you can even create a rating system for the aspects you consider most important. Being able to refer to your notes after returning home is invaluable.

Finally, Your Perfect Apartment

Finding your perfect apartment is largely a matter of planning your approach before starting your search. Think about your “must-haves” and “nice-to-haves” to focus your efforts and avoid getting distracted. Write down a list of questions to ask the property manager or landlord. Finally, take great notes that you can review later. These are the steps that can give you the edge you need to beat other apartment hunters to the punch.

Surprisingly, new apartment renters often neglect to create a budget. While your personal finances may seem simple, there’s a lot of value in creating a budget before moving into a new place. Even if you’ve done so before, it’s worthwhile to revisit your finances to ensure there are no surprises. Today, we’ll explore the steps involved with carving out a simple and effective budget for apartment living.

Plan Ahead

A good rule of thumb when you’re looking for an apartment is to make sure the rent doesn’t exceed 30% of your after-tax monthly income. If possible, try to keep it under 25% so unplanned expenditures won’t create a financial bind. Set aside another 10% for utilities, toiletries, and other daily items. Also, make a list of the costs of moving into your new apartment. For example, you’ll need to provide a security deposit, first month’s rent, and an application fee for a credit check. If you’re planning to use a broker, you’ll need to budget their fee, as well.

Plan Conservatively

Millions of people who rent apartments don’t budget their money conservatively enough. They plan on spending every penny they make throughout the month. Invariably, emergencies happen and they’re caught off-guard. Plan for the unplanned and build a financial cushion for yourself. That way, if your car breaks down or your pet becomes sick, you’ll have the resources to cope without jeopardizing your rent payment.

Modify When Necessary

Sometimes, living in an apartment can be unpredictable. For example, when your lease expires, the amount of your rent might increase. Bills for your cable TV, phone, and utilities might fluctuate. You may get a new job that increases your transportation expenses. Revisit your monthly budget often and make adjustments whenever something changes. And remember, something always changes.

The Big 3

Most budgets deteriorate because people overspend in 3 key areas: food, transportation, and rent. The amount you spend on food each month will fluctuate as much as you allow it to. It’s easy to cut back when necessary. Transportation can change due to getting a new job, increasing gas prices, or even taking on a new car payment. You’ll have less flexibility to maneuver financially. Rent can become a problem if you fall in love with an apartment that requires more than 30% of your net income.

When the costs for those 3 categories rise simultaneously, it can cause financial pressure. That’s why it’s critical to keep rent within 30% of your monthly take-home pay and plan your expenses conservatively.

Enjoying Apartment Living

Apartment living can be an exciting way to experience the city in which you live. In many markets, renting an apartment is the only way to live in the heart of the city. Take the time to carefully plan your budget. That way, you can easily keep up with rent, monthly expenses, and emergencies without fear of financial pressure.

*Photo courtesy of cliff1066

An apartment broker can be a valuable resource when you’re looking for a rental. In many ways, they serve a capacity that’s similar to a real estate agent. They’re paid a fee to find an apartment that suits your needs and preferences. In many large cities where the market is congested and good apartments are hard to find, these brokers can be an ideal solution. Today, I’ll explain the advantages and potential drawbacks of working with them. Then, I’ll describe how they’re compensated.

Advantages

Property managers often prefer to list available rentals with a broker rather than advertising them through the newspaper. When you work with one, you’ll have the opportunity to see apartments that others miss. Plus, they can focus on showing you the rentals that best meet your needs. Rather than wasting time visiting properties that are poorly-suited for you, they can take you to the apartments that are most likely to match what you’re looking for.

Apartment brokers will also have an intimate grasp of their market. They’ll be able to discuss the local community in which the rentals are located. If you’re moving from out of town, they can offer insight about stores, schools, and other places that you’ll find useful.

Potential Drawbacks

One of the disadvantages of using their services is that they’re paid to place you. The more quickly they find an apartment for you, the sooner they receive their fee. If your broker is desperate or impatient, it’s possible that he or she will push you into a lease that isn’t a good match for you. Also, the fees they charge for their services may be higher than you’re willing to invest.

Types Of Fees Apartment Brokers Charge

There are 2 main ways in which they’re compensated for their services: by you or by a property manager. When you’re working with a broker who charges you directly, their fees can range from 1 to 2 month’s rent, payable when you sign a lease. The busier the market is for a limited number of attractive apartments, the more they’ll charge.

If they’re paid by the property manager, you won’t need to pay for their services. However, you should realize that if this is the case, they’re actually working for the property manager, not you. In effect, they’ve been hired to find and screen tenants. So, you’ll need to be more wary about the apartments they show you.

Your Hunt To Find A Great Apartment

Looking for an apartment is often a tedious process when you’re hunting on your own. Hiring a broker can eliminate a lot of the stress and wasted time. The key is understanding the nature of their business; there are advantages and potential drawbacks to working with them. If you choose this route, be upfront and honest about what you’re looking for. If your broker fails to deliver, find another. Remember, there are many fantastic apartments waiting for the right tenant. It’s just a matter of finding them.

Aside from the occasional stroke of good fortune, finding a great apartment can be challenging. Some apartments are constructed poorly or the landscaping is perpetually unkempt. Others may be located in neighborhoods that are less than perfect. Still others may be saddled with a high rent. Don’t despair. If you devote the time, you can uncover veritable gems. Today, I’ll provide 5 resources that you can use to find the perfect apartment.

#1 - Apartment Brokers

If you’re looking for a place to rent in a small town, you won’t need the services of a broker. However, a lot of the best apartments in big markets are hard to find because they’re listed almost exclusively with them. For example, some apartments in Chicago can’t be found in your local newspaper. The only way to find out about them is through a broker.

#2 - Apartment Websites

There are several reputable online resources that list places that are available to rent. Most will allow you to search by county or city. Some offer even more flexibility, allowing you to search by budget, floor plan, and even type of facility (senior living, college apartments, etc.).

#3 - Local Newspaper

Don’t forget to check the classifieds. Even though it seems as if everything has migrated online, many property managers continue to use the newspaper to advertise. But, try to go through the ads as early in the day as possible. Great apartments can appear often, but they’re usually snatched up quickly by hopeful renters.

#4 - Landlords And Property Managers

A lot of landlords are aware that renters are moving out, but haven’t had the time to begin advertising the units. Call or visit them to ask about apartments that will be available soon. This is a great way to get the edge on other people who wait until signs are posted. Also, a property manager may be able to give you early notice that a renter will be moving out in a couple of months. If you have the flexibility to wait, this inside information can be your ticket into a great apartment.

#5 - Ask The Locals

You might be surprised by how much the locals know about nearby apartments that are available. Ask around. Let people know that you’re looking. The employees at the local coffee shop, restaurant, and even the library may be able to help. They see a lot of people each day. Some of them may be landlords looking for a responsible renter.

Finding The Gems

If you’re on the hunt for a place to rent, you already realize how difficult it can be. Consider using the 5 resources that I’ve listed above. Not only will they open the doors to units that would otherwise be hidden from you, but you can get the jump on others. In time, you may find the perfect apartment.

When you move into your new apartment, you’ll need to give the apartment manager (or landlord) a security deposit. This deposit provides the landlord with a measure of financial security. In the event that you damage your apartment (or break your lease agreement by moving out early), the deposit is used to compensate. It’s usually allocated toward making necessary repairs to the unit before it can be rented again. Ideally, when the time comes to move out, you’ll receive it back. Today, I’ll provide 5 quick tips for making sure that you get your entire security deposit back.

#1 - Document Everything

Before you sign a lease agreement, you’ll have the chance to walk through the apartment. If possible, have the manager walk through with you. Then, write down any damage or flaws that you notice. Once you’ve walked through the entire unit, ask the manager to sign and date what you’ve written.

#2 - Plan Ahead

A few weeks before you move out, ask your landlord to walk through your apartment with you again. Then, ask them to describe you what needs to be done before you can receive your security deposit back. There may be small damages that didn’t exist prior to your moving in. If that’s the case, write them down. Then, ask your landlord to sign and date the “damage” sheet. As long as you make the necessary repairs, you’ll get your deposit back.

#3 - Clean Well

Few people enjoy cleaning their apartment when they’re moving out. But, if you don’t clean it, the property manager will likely deduct a cleaning fee from your security deposit. Your apartment doesn’t have to sparkle. But, make sure that you throw out the garbage and miscellaneous trash. Also, don’t leave behind items that you no longer want. If your landlord is forced to throw your belongings away, expect to be charged a fee.

#4 - Give Your New Address

You’d be surprised how often people move out without providing their apartment manager with their new address. Unless you’re planning to pick up your security deposit in person, make sure the landlord has your new address. Write it down for them (don’t provide it over the phone).

#5 - Keep Your Documentation

Moving is always a hassle and it’s tempting to throw out documents that might seem useless. Until you receive your security deposit, keep your lease agreement, rental receipts, and signed papers regarding the damages that you’re responsible for. If fees are deducted inappropriately, you’ll have the documentation you need to state your case.

People often move out and don’t receive their security deposits back. Sometimes, the reason is due to their damaging the apartment without fixing it. Other times, they neglect to clean it when moving out. Occasionally, the apartment manager makes a mistake. Follow the 5 tips above to make sure that you receive your entire deposit back.

Hunting for an apartment to rent is exciting. It’s an opportunity to start fresh, adding your mark to a new home over time. When you walk into an empty apartment, you’ll begin furnishing and decorating it in your mind, according to your unique style. But, if you’re not prepared, you may lose the chance to rent a great find. Today, I’ll give you a quick list of 4 things to bring with you when you’re shopping for a new apartment.

#1 - Pen And Paper

Apartment renters are often surprised that they didn’t notice something inconvenient or annoying about their new home when they were first viewing it. Chances are, they noticed, but forgot. When you’re shopping for your apartment, you’re likely to see things that are less than perfect. For example, is the unit near a community pool, promising noise? Are the neighbors loud? Bring a pen and a small pad of paper with you to take notes about what you observe.

#2 - Checkbook And Tax Returns

Great apartments rent quickly, especially in locations that are competitive. If you see an apartment you’d like to rent, you may lose the opportunity if you’re not prepared (the property manager is unlikely to hold it for you). Bring your checkbook and tax returns with you. If you find the “perfect” apartment, you can reserve it.

#3 - Camera

Shopping for an apartment is similar to shopping for perfumes and colognes. After a few, they begin to blend together. Suddenly, you won’t remember the kitchen spacing, layout, or dimensions of the rooms. Bring a digital camera with you to keep track of the apartments you liked the most. You can review the pictures as you’re visiting other units.

#4 - 3 Months Of Pay Stubs

Property managers and apartment owners want to be confident that renters can pay the rent. Most of them will ask for proof that you’re employed. They want to see that you have enough income to afford the apartment. They also want to know that your income is dependable. Bring pay stubs from your job over the past 3 months. If you’re unable to do so, have your employer write a letter, inviting the apartment manager to call for confirmation of employment.

Odds And Ends

It’s also a good idea to bring a measuring tape. It’s not uncommon for the apartment manager to be uncertain about the exact dimensions of each room. Measure them and write the numbers down. That way, you can start planning the furniture and decorations after you’ve left. Also, bring your social security number with you (if you haven’t memorized it). The manager will want to run a credit check.

Bringing the items listed above can help you remember the things you like and dislike about each apartment you see. And when you’ve finally found the perfect place, you’ll be ready to take it off the market and reserve it for yourself.

*Photo courtesy of NZ Alex

A lot of new apartment renters neglect to read through their rental leases. Sometimes, they’re in a hurry and assume that the lease can’t possibly have an item that will give them pause. Other times, they’re simply lazy. But, it’s important to encourage renters to thoroughly read the lease before they sign it. After all, it’s a legal contract. While it may seem like a nuisance, the lease agreement is for the protection of everyone involved.

Today, I’m going to explain the basics of apartment rental leases. I’ll describe the items that they typically address and a few clauses that may surprise you. This is your 3-minute guide…

Understanding The Basics

First, nearly every lease agreement should require the renter to provide the names of each tenant. Often, renters will presume that they can have roommates without actually listing their names on the lease. Clarify this point with renters to avoid disastrous misunderstandings if something were to happen.

Apartment leases should also include details such as the rental amount, security deposit, address of the unit being rented, when the lease is in effect, and when it expires. If the renter wants a month-to-month agreement, the lease should mention it and clearly explain when notice must be given prior to the tenant moving out.

Beyond Apartment Lease Basics

All leases have clauses that are slightly different from one another. Some are common, while others are less so. For example, the lease should specify what happens in the event that rent is delivered late. It should also list any additional fees charged by the property manager (i.e. deposit for having a pet, fee for garage privileges, etc.).

Some apartment lease agreements will also detail policies regarding waterbeds, visitors, repairs, and the landlord’s right to enter the unit unannounced. A lot of property managers will also address issues of unit renovation (by the tenant), subletting, and behavior that can lead to immediate eviction.

The last, and most important, item is a place for signatures. Both the landlord and the new tenants need to sign the lease. Otherwise, it’s not legally enforceable, which can lead to significant problems once a renter has moved in.

Taking The Necessary Time

Apartment lease agreements are often treated as an annoyance. They’re glossed over without proper consideration. But, it’s important to realize that they’re critical for the protection of the renters, the landlord, and the property manager.

The world of property management changes like everything else. With all of the economic uncertainty, many families are turning away from home ownership and looking to rent. While this has made renting an apartment far more popular than in previous years, it has also increased the number of families moving in and out across the country. The property manager’s response to this has been using creative new ideas that allow them to attract new tenants and keep existing tenants renting longer.

I find very few things will chase a tenant away faster than poor customer service. While this has always been a large portion of the job, there is more emphasis on this now than ever. Some property managers have expanded to include 24-hour service via the internet. They create a website that allows tenants to send in repair requests, ask questions, and keep up on what’s new or happening in the building. Additional services such as automatic payments, access to tools, and group rates on things such as maid service are becoming popular.

Property managers also use their websites to keep the public informed on the apartments available for rent. This has revolutionized the process of apartment rental. Interested individuals can take a virtual tour of properties available. They can then email their questions. Interviews with web cam or even plain old telephone conversations help property managers screen tenants. The application process and even security deposits can all occur online. Why has this been so successful? Convenience for the owner, manager, and tenant.

One of my favorite new trends is the increased attention towards things such as upgrades and beautifying the property itself. Renovations including things such as new flooring, appliances, and kitchen renovations are gold when it comes to attracting new tenants. It also makes the owner happy because it adds value to the property. Some managers also use it as a reward for tenants who pay their rent on time consistently or those who renew their contracts.

Some property managers have taken these incentives one step further by offering different cash incentives. Referral fees and credit for tenants who pay their rent on time and do not have any incidents throughout the month are slowly becoming more common.

As property managers, we have focused on keeping our properties rented, but also on keeping our tenants happy. Let’s face it, the easier and more convenient apartment rentals are, the less work is involved for everyone. This translates into success for everyone.

*Photo courtesy of Zesmerelda.

Today’s economy is seeing people from all walks of life getting into a financial debt that is getting bigger and bigger as the days go by. The CEOs of big companies, business owners, and even the person who packs your groceries are all at risk of losing their homes. Why? Because their lifestyle costs far more than they can afford. Some spend more than they make every month while, for others, a tragedy strikes that they are not prepared for. In fact, Chicago area auctions for foreclosures are up more than 70 percent from three years ago!

One of the biggest mistakes these people make is failing to sell their home before it is too late and downsizing to a place that better fits their budget. They fail to accept the fact that they can’t afford it, or use the excuse that renting is more expensive than making their mortgage payment. This is a dangerous myth.

Say for instance, your mortgage payment is only $1500 a month and a monthly apartment rental is $2500. The house may seem less expensive, but add to the monthly payment your insurance, repairs, maintenance, upkeep, mortgage insurance, and taxes and you are quickly paying more than $4000 a month in many of the modest Chicago neighborhoods. You still have added expenses with an apartment rental or a condo rental, but will certainly be paying less than you do for a house every month.

For those on the losing end of the housing crisis, these occurrences are devastating. Those who are looking to invest in rental properties, on the other hand, are in their glories. In Chicago, the median price of housing has fallen a total of 9%. Apartment rentals, condo rentals, and other revenue buildings are following the same pattern. This means big savings for those who are increasing the rental investments.

In the end, those who can clearly examine their financial situation in the end win on both sides of the equation. With the costs of everything increasing and the prices of houses falling, renting an apartment is actually a far better option in many respects. The financial debt load decreases along with the pressures and responsibilities of owning a home making these hard times much easier to deal with.