Finding the perfect rental apartment can feel like searching for a needle in a haystack. But don’t worry—we’re here to turn this daunting task into an exciting adventure! With the right strategies, you can find a place that feels like home sweet home. Let’s dive into the steps you need to take to snag that dream apartment.
1. Determine Your Budget:
Before you start daydreaming about penthouse views, let’s get real about your budget. A good rule of thumb is to spend no more than 30% of your income on rent. But don’t forget to factor in utilities, parking, and renter’s insurance. Grab a calculator, crunch those numbers, and set a realistic budget that won’t leave you eating instant noodles every night.
2. List Your Must-Haves:
Make a list of non-negotiables. Do you need two bedrooms? Is a pet-friendly place essential? How about in-unit laundry or a gym? Create a list of must-haves versus nice-to-haves. This will help you stay focused and avoid getting swept off your feet by an apartment that looks great but doesn’t meet your core needs.
3. Research Neighborhoods:
Location, location, location! Research potential neighborhoods by visiting them at different times of the day. Check out local amenities, commute times, and the overall vibe. Look into crime rates and, if you have kids, school districts. Walk around and maybe even chat with locals to get a feel for the area.
4. Use Online Resources:
Thanks to technology, apartment hunting has never been easier. Use websites and apps like Zillow, Apartments.com, and Rent.com to browse listings. Utilize filters to narrow down your search based on your budget and must-haves. Don’t forget to set up alerts so you’re the first to know when new listings pop up!
5. Schedule Apartment Tours:
Once you’ve found a few contenders, it’s time to see them in person. Schedule tours and prepare a list of questions to ask during your visit. What are the lease terms? How’s the water pressure? Is the neighborhood noisy? Pay attention to the little things, like the condition of appliances and the amount of natural light.
6. Review the Lease Agreement:
Before you get carried away by the excitement, sit down and carefully review the lease agreement. Look for key points like the lease duration, deposit amount, and policies on subletting and breaking the lease. If anything is unclear, ask for clarification. Remember, this is a legally binding document, so understanding it is crucial.
7. Understand Your Rights:
Knowledge is power, especially when it comes to tenant rights. Familiarize yourself with your rights regarding privacy, safety, and maintenance. Every state has different regulations, so do some research or consult with a local tenant advocacy group to ensure you’re well-informed. Here is a great article about fees they like to charge!
8. Prepare for the Move:
Congratulations, you’ve found your perfect apartment! Now it’s time to plan the move. Start packing early, label your boxes, and consider hiring professional movers. Don’t forget to update your address with the post office, your bank, and any subscriptions you have. Pro tip: Have a box of essentials ready for your first night in your new home.
Finding the perfect rental apartment may take time, but with these steps, you’ll be well on your way to securing a place that meets your needs and feels just right. Happy apartment hunting! And remember, if you ever need expert advice or a helping hand, don’t hesitate to reach out to us at Kevin Day Real Estate. We’re here to make your real estate journey as smooth and enjoyable as possible.
Leasing fees are payments made by a lessee to a lessor for the use of an asset, typically property, for a specified period. A lease is a legal contract that outlines the terms under which one party agrees to rent an asset owned by another party. A lease ensures the tenant’s right to use the property and guarantees the landlord regular payments for a specific period.
Why Understanding Leasing Fees Matters
For landlords, leasing fees represent a crucial income stream. Knowing how to set these fees appropriately can help maximize profits. For tenants, understanding leasing fees aids in negotiating better lease terms and avoiding excessive costs. Additionally, comprehending leasing fees is vital for accounting purposes, as leases are a common method for companies to finance asset acquisitions.
6 Factors That Influence Leasing Fees
Location: Fees can vary based on the property’s location. High-demand areas, such as urban centers or popular vacation spots, often have higher leasing fees due to the competitive rental market.
Property Type: The type of property impacts leasing fees. Luxury apartments or high-end vacation rentals typically have higher fees compared to more modest rental properties.
Rental Price: Leasing fees are often a percentage of the rental price, meaning higher rental prices result in higher fees. Some property management companies may charge a flat fee instead of a percentage.
Services Included: Fees can vary depending on the services provided. Additional services like tenant screening, lease preparation, or move-in inspections can increase the fee.
Competition: The level of competition among property management companies affects leasing fees. More competition can lead to more competitive fees, while less competition can result in higher fees.
Negotiation: Leasing fees may be negotiable. Tenants or landlords might be able to negotiate lower fees or additional services in exchange for higher fees.
It’s crucial to note that leasing fees can differ significantly based on the property management company and specific circumstances. Both tenants and landlords should thoroughly review leasing agreements and clarify any fees or charges that are not understood.
Leasing Fees vs. Lease Charges
Leasing Fees
Charged to tenants to cover costs related to advertising, showing the property, reviewing applications, screening tenants, processing lease paperwork, and preparing the property for move-in.
Typically range from 75-100% of the first month’s rent and are sometimes called placement fees.
May include other charges such as credit check fees, application fees, and administrative fees.
Lease Charges
Additional fees included in the lease agreement, covering costs related to the rental property.
Can include utilities, maintenance fees, and other miscellaneous charges.
These charges are specified in the lease agreement, with the landlord responsible for accurate billing and payment by the tenant.
Security Deposit
A security deposit is an upfront payment made by the tenant to the landlord at the beginning of the lease term. This deposit protects the landlord from financial loss due to tenant default or property damage. Typically refundable at the end of the lease, the security deposit is contingent upon the tenant fulfilling all lease terms and leaving the property in good condition. The amount is set by the landlord based on factors such as the property’s value and the tenant’s creditworthiness.
Refund Process: At the lease’s end, the landlord inspects the property. If no damages or unpaid rent are found, the security deposit is refunded. If there are damages or unpaid rent, the landlord may use the deposit to cover these costs and return the remaining balance to the tenant.
Application Fee
An application fee covers the costs of processing a rental application, including background and credit checks. It also compensates the landlord or property management staff for their time reviewing the application. Application fees vary based on location and landlord, typically ranging from $30 to $200. These fees are generally non-refundable, though some states require refunds if the application is denied. Check your state laws to confirm the refundability of application fees.
Administrative Fee
An administrative fee covers the costs of administrative tasks like processing paperwork and preparing the lease agreement. While landlords are not legally required to disclose these fees upfront, doing so is considered best practice for building trust and avoiding misunderstandings. These fees are often negotiable, especially for tenants with good credit and rental histories. Tenants should inquire about negotiability and provide evidence of their strong credit and rental backgrounds.
Pet Deposit
Pet deposits and pet rent are fees charged to tenants with pets. A pet deposit is a one-time, refundable amount covering potential pet-related damage, while pet rent is a monthly fee added to the regular rent. Pet deposits typically range from $150 to $500, and pet rent can range from $10 to $50 per month. Some landlords charge both fees, while others may charge only one. Restrictions on pet types and sizes may also apply. Tenants should be aware of all pet-related fees and restrictions before signing a lease agreement.
Conclusion
Understanding leasing fees is essential for both tenants and landlords. These fees significantly impact your budget and rental experience. By knowing the types of fees, factors influencing them, and your legal rights, you can make informed decisions when entering into a lease agreement. For expert guidance and a hassle-free rental experience, contact th kevinday.co team today. We are here to help you navigate leasing agreements and find the perfect rental property.
Here are 7 points of review. Property managers and landlords review these when you apply for a lease.
household income 3 times the amount of the rent
credit score
are you moving within the next 30 days or less
do you have any broken leases or evictions in the past 7 years
do you have any criminal history in the past 7 to 10 years
are you wanting a minimum 12-month term
are you going to use the space for a corp rental or AIRBnB
Let’s get into a few details about each of the 7 topics above.
Lease Income Requirements
Monthly income must be three times the rent. If the rental you are applying for is $2,000 a month your gross income needs to be $6,000 or higher.
Landlords or property managers will verify this info with your employer and at the time of application you will need to provide 60 days paycheck stubs.
Self employed applicants will need to provide two years’ tax returns.
If you are wondering how much you can afford, a rule of thumb is 25% to 30% of your gross income, a great resource for examining these expenses can be found at MyHome by Freddie Mac.
Lease Credit Requirements
A 620 or higher credit score is needed.
Depending on the property, the landlord or property manager they may sometimes work with a tenant if it is slightly below 620 by requiring a double deposit or consider a co-signer, but most of the time anything below a 590 is an automatic denial.
A great tool to monitor your credit score is Credit Karma, it’s very easy to use and FREE!
Timeframe
Every day a rental property sits vacant, the landlord loses potential rental income, filling the vacancy quickly ensures steady cash flow. To make your application more attractive, be sure to list your move in date within 30 days or less, the sooner the better.
Broken Leases or Evictions
If you have a broken lease, eviction on your record, or if you owe any property money for any reason, within the past 7 years it is almost 100% an automatic denial. There is a special database in addition to credit reporting and background checks that is just for broken leases and evictions; sometimes it won’t show up on your credit report but is still in the Evictions database.
Criminal Background
This can vary from property to property, owner to owner, but many places will not accept felons; other criminal activity will need to be fully explained. It’s best to disclose this fully prior to application and see what the property’s rules on working with this.
Lease Length
Many properties do offer short term leases, 3 month, 6 month and 9 month, but at a steep price. Sometimes as much as 3 to 4 times the normal 12 month rent rate. This article is written for more mainstream, tradition leases and tenants and for the purpose of getting approval and we suggest asking for a minimum 12 month lease.
Corporate Lease and AirBNB
It’s rare to find an owner, property or property manager that allows corporate leases or AirBnB sub leasing. Like above, this article is written for more traditional applicants who want to occupy the property and not sub lease it out, so this should be a non issue.
If you are planning on sub leasing the property this needs to be fully disclosed prior to signing the lease.
Leasing a residential rental property is pretty straight forward and easy. If you have any questions feel free to contact Kevin via text at 469-583-2527 with your question and he will get back to you as quickly as possible.
