by Rob Purifoy

Created on: January 18, 2010

The first and foremost potential mistake a first time renter may make is assuming that you are supposed to rent and you may not even consider buying a home. With low interest rates, large tax credit, interest and property tax write-offs and cheaper payments than rent for a comparable property, all should come into consideration on even the first house. Contrary to popular belief, credit card lines are not needed to qualify for a home as other things can be used to show good payment history. In fact, no credit is better than bad credit. Having said this, there are those that just won't make a commitment regardless of getting into a great investment right off the bat as a new adult life ensues. In those cases, here are things to consider when renting.

In many markets renting a home is about the same price as an apartment, but in a house you could likely get larger square footage, a garage and privacy not afforded by most apartments. There is typically a deposit, pet deposit, if applicable, and the first months payment due upon move-in. The biggest thing to check for when renting from an individual owner is to make sure the mortgage is being paid on time. I have spoken with several people over the past years that made their rent payments only to find out that the owner did not make the mortgage and are now being foreclosed upon, forcing the tenant to find another place to live. As a tenant who is expected to make payments, it's a good idea to require of the landlord a quarterly mortgage statement showing the mortgage is paid to date.

Normally inspections are used on home purchases but there have been cases that tenants have found, only after moving in, that the rental property was substandard for occupancy. While you may not want to pay for a true inspection, you should perform a check of major items on your own; turn on faucets, check appliances, disposal, heating and air, fireplace, or major cracks in the foundation (too much movement could cause pipes to break). While you don't own the property, these items can become an aggravation while living there.

As far as apartments go, check the same things you would in a house, prior to move in is the time you want to make any repairs known to the leasing office. The most common mistake usually happens at move-out. You must thoroughly clean the place up, move everything out, and vacuum and clean carpets if necessary. It's too often that people tend to think the place looks "good enough", but don't assume because it could cost you the deposit. Apartment communities are all too happy to find a reason to keep your money, so don't give them any reason to do so. Speaking of move-out, another common mistake is breaking the lease early, this is another way to not only lose the deposit but also to have a negative entry added to your credit for rent owed. This practice also eliminates a good rental history reference which could prohibit you from getting the next place you want to move into.

Most things are just common sense but it can be easy to overlook things due to the emotion of getting a new place. But in the end, a little forethought can save aggravation down the road.

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