Ernst & Haas Management Co Blog

[caption id="attachment_894" align="aligncenter" width="267" caption="Renting your first apartment can be exciting, but there are things to consider before moving!"][/caption] Renting your first apartment can be very exciting, and very hectic at the same time. Whether you're moving out of your parent's house, or graduating from college, being on your own is liberating and brings a sense ownership. But with that comes great responsibility in keeping your place in tact and your finances in order. In the world of renting, maneuvering tight spaces and dealing with obnoxious neighbors barely scratch the surface when it comes to problems that can be encountered during your renting experience. But have no fear because with every problem, there is a solution. The following are Kiplinger.com's 7 major mistakes first-time renters (or seasoned renters, for that matter) make when transitioning into a new place, and how to avoid finding yourself in those situations: 1. Underestimating the Cost: It's vital knowing how much you can afford to spend on housing - and being completely honest about it. Tally your monthly expenses and calculate how much money is left over to spend on rent. After seeing what apartments in your area are renting for on Web sites such as www.Craigslist.com and www.MyRentalList.com, you can then determine whether or not you can afford to be on your own - or if you need a roommate. More importantly, don't forget to plan for start-up expenses such as application fees, security deposits, utility turn-on fees, parking fees, pet deposits, and of course, first month's rent. And a note of caution: try to refrain from relying on your credit cards to fund your move-in expenses - your new life of independence shouldn't be shackled down by never-ending interest payments.  The best way to handle start-up expenses and keep yourself on track every month, is to build your budget. Budgeting will help you pay for your bills, and hopefully have a little extra left over to enjoy - without getting into debt. 2. Not Getting Your Priorities Straight: It's really as simple as writing down a list separating your needs from your wants. For clarification purposes, needs are those things that you absolutely cannot live without (i.e. living close to work or public transportation because a bike is your mode of transportation), and wants are those things that would be nice to have (i.e. a killer view of the city from your living room). Sorting out your needs and wants will help keep you  from making a choice you may regret later. Keep in mind, your first place isn't going to be perfect, so you need to know which things you can let slide beforehand. 3. Not Seeing the Apartment Before Moving In: It's a good idea to take a look at the place you plan to call home before finding out your couch doesn't fit through the front door on moving day. When viewing a unit, bring a measuring tape to measure spaces and take note of the number and location of phone and cable jacks and electrical outlets. Turn on the faucets. Flush the toilet. Turn on the lights, oven, air conditioner, and other appliances. Tune into the surroundings - the traffic, neighborhood noises, and any strange smells. And don't forget to check your cell phone's reception from inside the apartment. Put the apartment through the ringer! 4. Failing to Read the Lease: A lease is a legally binding contract between you and the landlord, spelling out each of your rights and the rules you must abide by while living in the space. But it's worth your while to read through all of it before signing on the line. Every lease includes basic information such as the length of the lease, the amount of rent due, the amount of the security deposit, etc. But some leases outline penalties for late rent, policies for owning pets, what utilities you're responsible for, policies on painting or altering the apartment, and more. Lastly, make sure to be aware of what happens to your lease agreement at the end of the term. 5. Not Asking About Utilities - Or Forgetting to Turn Them On: On occasion, eating takeout by candlelight may be romantic. But doing it every night, storing your garbage on your balcony, and taking cold showers every morning is just uncalled for and unnecessary. So before you move in, make sure you ask your landlord or management company specifically what utilities you're responsible for paying - and turning on. And don't forget the extras - phone line, Internet service, and cable TV. Once you've figured out what you're responsible for, contact the local utility companies and arrange for them to turn on your services the day before you move in. 6. Going Without Renter's Insurance: Unless you have enough money saved to replace everything you own in the event of theft, fire or other disaster, you might want to consider renter's insurance. Most property owners and landlords have insurance, but it usually only covers the building and infrastructure - not the stuff you keep in your own unit. Some landlords may require renter's insurance before you move in, which on average costs anywhere from $150 to $250 a year. You may pay more or less depending on your neighborhood and level of coverage. 7. Forgetting Basic Items to Make a Home: If you've never lived on your own before, you're bound to be short a few essentials. Things like shower curtains, can openers, trash cans, and dinnerware are easy to forget, but are must-haves for any place. Of course, you need the big things like a couch, bed, dresser, etc. But don't forget the small essentials like cleaning supplies, towels, sponges,bathroom rugs, flashlights, lamps, and the always needed toolkit, complete with hammer, pliers, and screwdrivers. For more help on what you'll need in moving into your place, print off these apartment checklists from About.com.