Renting

To rent or buy? - that is the question. When you and your Coldwell Banker Chesapeake Real Estate Agent decide to lease a property, you should keep a few factors in mind. Do you have good credit? What about protection for your property? We can help you create a house renting checklist and offer excellent home renting tips and information. While you may not be buying the place, you’ll still want your bases covered when you’re living there. Cover your bases — here.

Although more Americans are buying homes than ever before, renting can still be the most suitable option for some. You and your Coldwell Banker Real Estate agent have found the perfect rental. You should consider several factors when making the decision to rent.

Stability

Homes appreciate in value, but it takes time to see this benefit of homeownership. If you plan on staying in the same area for a long time, buying a home may be a viable option. However, if your situation is not so stable, buying a home may not be to your advantage. When you purchase a home and then sell it within a short period of time, you may just break even, or even lose money, at the settlement table.

Finances

Lenders today offer options that allow people in all financial situations to purchase a home and take advantage of the resulting tax benefits. Still, some people may be concerned about making such a big financial commitment. In addition to a down payment, settlement costs, and insurance, you need to be prepared to pay for major repairs and improvements when you own a home. When you rent, the landlord typically covers repair and maintenance costs for you.

Home Maintenance

From mowing the lawn to shoveling the snow, home maintenance comes with homeownership. You should think about the time you are willing to invest in maintaining a home. If you travel a lot of just don’t like outdoor projects, you may consider renting in a community where outdoor maintenance is included in the rent.

Home Decorating

While it may seem like a trivial detail in deciding how to live, your personal style can play an important factor in your decision. When you rent, there are often restrictions on what changes you can make to the property. Even painting a wall requires permission from the landlord. When you own a home, however, you can decorate it as you please.

Looking For That Perfect Rental

Much like buying a house, searching for the right rental property begins at home. You can save yourself a lot of time and anxiety by answering these simple questions before you begin your search:

• Do you prefer an apartment or a house?
• Will you have roommates or live alone?
• How close do you need to live to your job?
• How close do you need to live to public transportation?
• How far can you live from shopping, dining, and other amenities?
• What is your desired parking situation?

And like looking for a house to buy, remember to consider the community. Neighbors are often in closer proximity in rental units.

Application and Verification

Once you find a place that suits your needs, you will fill out an application. The application is not a binding agreement. It only indicates your interest in the rental property. The landlord will verify your income and rental history, including any previous mortgage payments, and also run a credit check. Please note, there may be fees associated with the application and credit check.

The Lease

A lease outlines the responsibilities of both the tenant and the landlord. While some landlords consent to verbal leases, get a written lease if at all possible. A basic lease details all rental terms and dates, including:

• Property address
• Names of all tenants and the landlord
• Amount of monthly rent
• Amount of security deposit
• Late payment penalties
• Length of lease
• Notice to renew the lease or vacate the property
• Notice for the landlord to enter the property
• Pet policy
• Repair policy
• Decorating policy

A lease is usually valid for one year, although another length of time could be specified. Shorter leases usually mean higher rent. Month-to-month leases are good for one month and, unless specified by either party, are automatically renewed each month. Make sure you understand everything that is outlined in the lease. If there is anything you don’t agree with or understand, it should be changed or removed from the lease. All changes should be initialed by both parties. Once the lease is signed, it becomes a legally binding document. Remember to keep a copy for your records.

What it Takes – Dollars and Sense

While you don’t need a big down payment to secure a rental property, you still need to allocate an amount of money to move in. Along with your first month’s rent, there will be other initial expenses including:

• Application fee, credit check fee – These fees normally run $10-$50, depending on the area you choose to live in.
• Security deposit – Security deposits range from a couple hundred dollars to a full month’s rent. The landlord holds on to this payment to cover any unpaid rent or damages to the property at the end of the lease. The remaining amount will be refunded to you.
• Pet deposit, if applicable – If you have pets, and the landlord allows them, you will probably pay a pet deposit. This deposit is a few hundred dollars per pet and is usually nonrefundable.

You should budget 25-30% of your monthly gross income for housing. In addition to your rent, keep in mind the other monthly expenses you will have to pay such as utilities, food, entertainment, and savings. Find out from the landlord or management company what utility payments, if any, are included with the rent.