Rules for Renting
Renting is quickly coming back into fashion as people witness the turmoil some homeowners are going through as market values plummet and foreclosures become more and more common. Renting is not without it’s risk, however, because a bad renting situation can have an effect on your personal finances and can potentially harm your credit rating just like many other financial transactions. Before you decide to rent as a result of not wanting to deal with the potential problems associated with owning a home, make sure that you enter into a rental agreement protecting yourself from potential financial problems.
You need to see the property before you agree to rent. If you’re renting in an apartment complex you shouldn’t just look at a model version of the apartment you want and start signing paperwork. You need to see the actual apartment before you agree to rent otherwise you might wind up with something that is a lot different from the model you viewed. If you’re renting a house you should get to tour the inside, even if there are tenants living there. If you sign paperwork and agree to rent a place that you have never set foot in then you can’t complain if you arrive on move-in day and everything is a mess.
You need to have a lease. Don’t rent a place to live based on a handshake or a verbal agreement. Renting is a financial transaction and should be treated as such. A lease will protect both you and the person who owns the property and spells out exactly what is expected of everyone involved. Read the lease in its entirety and understand what you are signing before you sign it.
Keep records of everything. Whether it’s the sink overflowing or the heater not working, your landlord should take care of everything that needs to be fixed. Keep records of the things that happen as well as the outcome regarding whether the items are fixed satisfactorily or not. If you have to fix something yourself, keep records of how much it cost and request repayment or a rent deduction from your landlord.
Pay on time. Your rental agreement specifies what day of the month your rent is due and how much the late fee will be if you don’t remit on time. If you don’t pay your rent on time you might find yourself in a situation of getting evicted, or of not getting your lease renewed, not to mention all the extra money you’ll have to pay in fees.
Don’t trash the place. You may think that since you’re renting instead of buying that there is no reason to worry about upkeep or other things pertaining to keeping the place acceptable. The truth of the matter is that there can be legal repercussions if you damage the place you rent, or even if you don’t manage it like you should. Legal ramifications for this can go beyond simply losing your security deposit.
