Renting an apartment involves a lot many processes; from finalizing your budget to zeroing on the location. The following post provides five tips for renting an apartment. Read on to know more!
Renting apartments might not be an easy task because there are many things to consider getting an apartment of your choice. A new city, a new job and new people can leave you totally dazed. This article will deal with things to look out for when apartment for rentin a step by step manner, whether you are a bachelor or a family looking for apartments on rent, you will find these tips useful.
Most buyers invest in property and then let it out on rent for a steady income. So the problem is not of getting an apartment of your choice, here there is a problem of plenty. However, if you look closer, getting an apartment close to the place of work and yet having all amenities that you desire may prove to be difficult. When you set out to look for an apartment, make sure you consider the following tips:
Look up the internet for brokerage free rentals
If you are reading this post, chances are that you are internet friendly. Many websites host rental property free of cost for owners and the tenant can get in touch with the owner directly, circumventing the agent. However, this can be a long process since calling each owner yourself and ascertaining whether or not the property in question suits you or not is entirely up to you.
You will also have to deal with negotiations with respect to deposit and rental per month yourself. If you do not want to go through this, you could proceed to the next step.
Hiring a real estate agent
Hiring a real estate agent is a good idea because they will be able to give you a pretty good idea about the ways you can benefit from a real estate agents are – you save on your time; agents give a better idea about the rental market; they can showcase you maximum number of properties. You also end up benefitting from their networking. Since they have a good understanding of the market, you can be sure of being getting to see better rental properties.
Finalise the Budget and Location
Finalize the location, depending upon your budget; once you have chalked out your budget, it will help you focus on your location. It is advisable that you choose a location wisely such as – how far is it from your work or your children’s school. Make a proper survey before arriving at a conclusion.
How the deposit and rental equation works
When you looking for apartments for rent, you need to familiarise yourself with how the owner thinks in terms of his income from the property. Firstly, the owner charges a deposit from you which can be anything ranging from 3 months’ rent to 11 months’ rent (this depends on a variety of factors like location, if the apartment is furnished or not, etc). This deposit secures him against any non-payment from the tenants’ side and also loss or damage to property during the tenancy. He will earn a yearly interest from this sum. Apart from that, the owner will receive a monthly rent from you.
These 2 factors form an equation. If you wish to negotiate for a lower monthly rental, chances are you will be asked to shell out more for the deposit. If you can’t afford to pay a high deposit, you may be asked to pay a higher monthly rental. Either way, the owner tries to maximise his gain and minimise his risk. If you have opted for an estate agent, he should help you in this type of negotiation. However, depending upon the locations, these terms can be altered.
Check the Rental Property before Finalizing the Deal
Perform the usual checks of water availability, connectivity to main roads and markets proximity to railways and airport and safety are done without any fail. If possible speak to previous tenants to see if there are any major problems with the apartment.
Once you are satisfied, you could make a token payment to the owner to secure the apartment. After receiving this token, the owner can’t show the apartment to other prospective tenants. Secure the deal legally by notarising an agreement between you and the owner. This agreement is usually made for 11 months.
Discuss the payment schedule with the owner and the possibility of further increase in the rent in case the agreement is renewed after 11 months. Chances are he will try to be non-committal, but if he is open about it, try to include it in the formal agreement to safeguard yourself against any sporadic rise in rent.