If you’re having issues selling your own home, whether it’s for financial reasons or something else, you may want to wait before buying another one. If this is the case, you will need some basic tools on renting an apartment or house. Especially if you have been a home owner for many years. Below are some quick tips on renting an apartment after a home sale.
Tips on Renting an Apartment after a Home Sale
Establish your price budget
It will save you a lot of time and energy to establish a price range and a budget. If you don’t want to spend more than $900 a month on rent for a 1bd than don’t waste time looking at luxury communities that start at $1,200 per month.
The current average rent in Raleigh NC is $1,043 according to Rentcafe.com The table below shows the average rents in Raleigh NC, based on bedrooms and square footage:
| All rentals | Studio | 1 Bed | 2 Beds | 3 Beds | |
|---|---|---|---|---|---|
| Average Rent | $1,043 | $931 | $961 | $1,089 | $1,363 |
| Average Apartment Size | 949 sq. ft. | 538 sq. ft. | 752 sq. ft. | 1,061 sq. ft. | 1,299 sq. ft. |
Speaking of budget, most communities will require you to prove that you make at least 3 times the monthly rent in gross income. So, if you are making $4,000 a month you can qualify for rent up to $1300 a month (4,000/3 = 1,333).
Keep in mind that 3 times the monthly rent is the minimum you need to qualify. You may find cash to become tight if you are spending that much money on rent.
Many financial advisers suggest having a housing payment that is no more than 25% of your monthly net income.
For example
$4,000 Gross Monthly Income
-$1,000 (estimated taxes)
=$3,000
25% of your net would be $750 per month ($3,000 x 25% = $750). Therefore, it would best to only spend $750 a month on rent in that scenario.
Inquire about fees/utilities
What kind of utilities will you be paying? You should expect to pay electric, water/sewer, and trash. Make sure you ask about natural gas, and cable/internet charges.
Does the community charge for amenities? What are the application and administration fees? How much is the security deposit with approved credit?
Usually apartment communities will require a security deposit of $100 – $250 with approved credit and up to 1 or 2 months’ rent with poor credit.
Reputation of property and management company
Have you checked apartmentratings.com? Don’t forget about Google reviews, and yelp. I would look at all the different review sites and look for some consistency.
Are there a lot of negative reviews? Do they relate to the same problem consistently? Does the community have a reputation for charging large fees at move out? Also, check out the reviews of the property management company. These are all things you should know upfront.
Don’t sign till you see
Don’t ever, EVER, sign a lease agreement before you walk the apartment. Once you sign the lease you will
be required to make all scheduled payments on time for the duration of the lease. You won’t be able to back out of lease if the apartment is not as pretty as the “model”.
Move in inspection
This is one of the most important details that 90% of apartment shoppers miss. Many will move into an apartment that has stains on the carpet, cracked windows, or scratched counter tops and they don’t inform the community in writing . As a result, they are charged to replace these items at move out–don’t let this happen to you!
Also, verify what you are told by the leasing agent. “He-said/she-said” doesn’t hold up in court. Everything must be in writing and email counts. Having to sell a house fast doesn’t mean you have to rent from the first apartment community you find. A little due diligence at the beginning will save you money and heartache at the end.