by Kristen Bevilacqua

Created on: September 12, 2009

Whether it's a five floor walk-up or a dark basement studio, your first rental will always be fondly remembered. Unfortunately those cherished memories can be easily tainted by regrets if you are not an informed renter. Make sure you don't get burned by the common mistakes of first-time renters. These mistakes, that could have been avoided, most commonly include finances and roommates.

Hidden Costs

When deciding on your rental, the monthly rent is not the only cost to consider. There can be many hidden costs if you do not know the right questions to ask the property manager or owner.

First, it is important to know how much money you will be required to pay upfront, before you may even move into the apartment. Many rentals require first and last months' rent to be paid in advance, as well as a security deposit to protect the owner against damages to the apartment. In some cities it is also common for realtors showing the apartment to request a finders fee. The fee can be as low as half a month's rent to as high as over 15% of the annual rent.

There could also be additional costs hiding in the inclusion of - or lack thereof - the utilities. Do not just assume that the heat, hot water and electricity are included in your rent. Find out which are included and which utilities are not covered. The lease should also state which utilities the owner covers. For the ones which you will be responsible, ask for an idea of the average monthly cost so that you may factor that amount into your total monthly expense for the apartment.

Additional fees and the responsibility of utilities can make an apartment with low rent go from reasonable to unaffordable instantly. Plan ahead, ask the right questions and keep your finances associated with your first rental in check!


Roommates

Many first-time rentals are college students or recent college grads. Unless they have hit the jackpot with a six-figure entry-level job, most will rent their first apartment with roommates in order to cut down on rent and living expenses.

The people you choose to room with should be considered very carefully. It may seem like the coolest guy in the dorm with a party in his room every night would be a good pick because, well... he's the coolest guy! Or maybe you can't wait to room with your best friend who thinks full-time poet sounds like an awesome future.

Consider your lifestyle. Parties are fun, but do you want one in your living room every night? Consider your finances. You love the arts, but are you able and willing to fund your best friend's budding writing career if she is short on the rent?

Use some caution when approached with idea of renting an apartment with your best bud. The best roommates are not necessarily your closest friends, but people with whom you share similar or complimenting lifestyles. You do not want to insult your friends, but it's better to have a difficult conversation about roommates upfront than to lose a friendship altogether due to tension and arguments later.


The search for your first rental is exciting, but it can also be frustrating if you are not well-informed enough to make good decisions. Educate yourself on the questions that need to be asked and weigh all the financial and lifestyle considerations before you sign on the dotted line.

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