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5 Common Mistakes for First time Renters.
Moving out of home for the first time is an exciting time. Gaining your independence and freedom is a life changing moment, however, with it comes financial responsibility as well as commitment. Here are 5 mistakes to be aware of when looking to rent your first property.
- Finances. Probably for the first time in your life you will be solely responsible for your finances. It is important that you budget accurately. Working out how much you can spend on rent is a good start, but remember that you will also have the added cost of bills, and not just things like gas, electric and phone bills. Don’t underestimate the cost of items such as groceries and petrol. Furnishing your new place is also a consideration. It will be lovely to have 4 walls but if you have no bed or sofa it won’t be much fun! Also, you will undoubtedly need to place a deposit down on any property you might wish to rent. Having your own place can also have sudden and unexpected costs so having a safety net of cash available is a good idea.
- Not purchasing Renters’ insurance. Renters’ insurance is an insurance policy which has most of the benefits of homeowners insurance. Your Landlord will be required to have adequate insurance to cover the cost of the building should the worst happen, but this will not cover any personal belongings that you as a tenant might have. Many rental properties will also require you to have renters insurance.
- Not completing a move in inspection. Once you have decided on the property you want to rent, ensure that you complete a move in inspection. This means walking around the property with the Landlord and documenting any faults, problems or damage to the property. This document would be crucial should there be any discrepancies on your departure from the lease, and could mean the difference on you receiving your deposit back or not!
- READ THE LEASE!When you rent a property you will be require to sign a lease. This is a legally binding contract between you and the Landlord and you must read it very carefully as it will outline conditions and terms of your rental agreement. Not all terms may be financial as it should outline the Landlords decisions on Pets, smoking, quiet hours, the number of guests you may entertain, whether you can repaint or hang things on the wall, as well as the eviction procedure. All things you should carefully consider as a tenant before you sign the lease.
- Choose your Housemate carefully. Many people when renting for the first time may need a housemate. It is very important that you carefully consider who your housemate will be. Usually a housemate is required for financial reasons, so ensure that the person you select is financially sound. While the idea of living with a friend may be appealing, be practical. Has your friend got a steady job and regular income? Are they reliable and responsible? You don’t want to be in a situation where you have to cover their half of the rent. If your housemate is someone that you don’t know, interview them formally and ask lots of questions. Don’t jump into making a decision it could end in disaster!
While moving out on your own is exciting, it can also be very daunting. Being as prepared as possible is key and it goes without saying that your finances need to be in order. Do some research and save for a while before making decisions
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