Are you moving up in the world? Ready to strike out on own? Are you planning on renting? Even if you’ve signed a lease before check out these helpful tips for renters! You might be surprised what you learn.
Figuring out how much to pay for rent
When trying to figure out what you can afford for rent try not to just think “This is how much I have been paying,” because that doesn’t always work – especially if you’re moving from a college town to metropolitan suburbs. Groceries, gas, and dining all cost more – and your commute will eat up more gas. Consider what you pay regularly: Utilities, cell phone, insurance, car payment, and student loans for example. Then figure out what your other costs are: Groceries, dining, shopping, what it costs for your pets (vet, food), medication, gas, regular hair appointments, and subscriptions to magazines or services – sometimes these can be controlled or changed by budgeting, and sometimes they can’t. You’d be surprised how much you actually pay out every month.
You don’t want to have nothing to spend on yourself or to save. If you make $2000 a month and all those costs leave you with $1000 to spend you probably want to spend between $500-$700 on rent so you have a cushion to save money and be prepared for emergencies.
Use our free web-based interactive spreadsheet to help you estimate your rent!
Searching for a place to rent
Whenever you do a search use figures like 1+ beds, 1+ baths as well as your price. That way it’ll pull up any combination that fits that criteria like {1 bed 1 bath} {2 bed 1 bath} and {2 bed 2 bath}. That way if you find a 2 bed 2 bath place that is within your budget you can snatch it up! Keep in mind that 2 baths are two full baths – half baths are sometimes written as 2.5 (2 full, 1 half) or 2.55 (2 full, 2 half) or even 3 (2 full and 2 half). Make sure you carefully read the room list to verify.
Use websites like rent.com, apartments.com, realbird.com, and homesdatabase.com. Rent.com and apartments.com will have lots of apartment complexes while homesdatabase.com and realbird.com will have lots of private rentals. Apartments don’t always use MRIS (homesdatabase.com) because they want to avoid paying realtor commissions. Conversely, realtors use MRIS to list their properties so by not searching homesdatabase you could be missing a good find. Either way, you’ll want to check all three sites if you have the time. Any rentals you find on homesdatabase you’ll probably need an agent to show you the place (not always), you can either ask the listing agent or have an agent from McGlothlin Properties help you.
Keep your expectations realistic
Consider where you are in life – are you just out of college? If you are, chances are you aren’t making that much money – or at least not as much as you think you’re making.
Rentals in Northern Virginia typically range from $700 – $1200 for a one bedroom and $1100 – 1700 for a two bedroom. Many new renters who move from more rural areas are very surprised how much rentals are in Northern Virginia and how competitive the rental market can be.
Do pick out features you like such as: Close to the metro, close to the interstate, close to shopping, community swimming pool, community fitness center, granite countertops, open kitchen, bedrooms that don’t share a wall, and/or soaking tub. Try to prioritize which features you can really benefit from (close to the metro) over features you prefer (granite countertops). At the same time, realize that your agent may not be able to find a rental that includes all these features for what you are able to pay in rent. Be willing to compromise – just because this rental has corian countertops doesn’t make it a bad option.
Also keep in mind that your rent and/or fees will reflect any amenities or community features. Many communities have a one-time non-refundable “amenity fee” that allows you access to the pool and fitness center. Other communities may have an HOA or condo fee – which may or may not be included in your rent.
Scrutinize amenities as well. As already mentioned, amenities can drive your rent upward. Many apartment complexes have “renovated” and “non-renovated” units – each with different prices. Condos in the same high rise could have different features – and can be priced to reflect that. Ask yourself if you really need those granite countertops or if a lower rent, which can help you save money toward your own place, is better choice. Also think about the upkeep or indirect consequences of those amenities. Vaulted ceilings may look amazing but how much more electricity does it keep to keep all this extra space warm in the winter?
Remember that this is only a place for you to rent. Compromise now and get your dream house later – because then you’ll own your dream, not rent it.
What landlords look for in potential renters
Rentals look at 3 major areas for possible renters: Credit Score, Employment, and Rental History. Think of employment as “Is he capable of paying rent?” think of credit as “Does he pay his rent?” and think of rental history as “Is he a good renter?”
For credit score you want to be somewhere in the 700′s (650 at the absolute lowest). In general 800 is very good, 700 is good, 600 is okay. You can find your credit report out for free at www.annualcreditreport.com. You are entitled to a free credit report every 12 months from one of each of the three credit bureaus. Your credit report may not include your actual credit score however. If your agent has a lender they work with, the lender may assist you with checking your credit score. It may take a couple days for it to come through but if you run it now you have a good idea what it’s going to be later. As long as you don’t make a big purchase that requires you to take out a loan (like car or furniture) it should remain the same.
Rental history is basically the landlord calling your current landlord and asking how happy they were with you. Did they pay on time? How was the condition they left your rental unit in? Would you rent to them again? Try to think of questions you would ask somebody if they were going were going to rent from you. What would you ask their landlord? Now ask yourself that question – be honest (because your landlord will be), is it favorable?
Desirable employment is at least 1 year with the same employer. College students who did not work during college have lots of issues with this. Even if you just got a brand new job but you worked at Banana Republic for 3 years in college – you have good employment history. Conversely, even if you just got a brand new job that pays a decent wage but no previous employment you may still be considered risky, “Will she quit?” “Would she be fired?” “Would she be laid off?” Strong loyalty to your previous employers easily answers those questions favorably. Also keep in mind that rentals will ask to see proof of income – usually a month or 2 month’s worth of paystubs and/or bank account information.
When you’re looking for prospective roommates don’t just choose your friend – make sure they are just as favorable in the above three criteria as you are if not better.
One very important factor when looking for roommates: Many landlords in Northern Virginia will not rent to more than 3 unrelated adults. In fact, in Prince William County a zoning ordinance was passed that limits the number of unrelated adults in a household by square footage. Landlords are looking for responsible tenants – not to turn their only rental in a fraternity. Make sure your agent asks potential rentals if they allow three or more renters if that is your situation.
What to ask when looking at potential rentals
Finally, when you do apply somewhere try to ask the right questions:
“What’s the application fee? Is it refundable?” Some places will refund your application fee if you are turned down, some won’t.
“Will my rent increase if I renew my lease?” Some places lock your rate in but most places will increase your rent by 1%-3% per year (when you renew your lease). In addition, some complexes experience rent that fluctuates regularly. While this may not affect you as a tenant this could affect you on your search. You don’t want to look at place that is $1000/month today, think about it for a week, and decide to write an application and find out it has increased to $1200/month. Some places will allow you to put a deposit down (usually $100 – nonrefundable) to hold a unit of your choice which may or may not lock in the rate you were quoted. If you decide to rent the deposit could go towards your security deposit. If you decide to go with another rental they will keep your deposit.
“If I sign a two+ year lease, can I get a reduced rate?” Many places will be hesitant to accept this negotiation but it doesn’t hurt to ask. Private rentals may offer incentives for longer leases. But you won’t know if you don’t ask.
“What days can I move in? Does it cost anything?” Some places don’t let you move in during the week and some charge you a fee for moving in or even to use the elevator when you move in.
“Do you have a pet deposit? Is it per pet? Is there a pent rent? Is that per pet?” If you are already at the top of your budget, those additional monthly payments can add up.
“What’s included in my rent? Which utilities?” Many complexes, private rentals, and HOA/Condo Associations include water, sewer, and trash in their rent/fees – but some do not. Make absolutely sure to know which utilities specifically are included.
“What’s the parking situation? Is it assigned? What if I have visitors? What if I have visitors who want to spend the night? Spend the weekend?” Some places charge you for a space – or some give you one space for free and then charge you for additional spaces or guest passes. An example is a complex that charges $20 a night for a guest to park there.
Putting an application in
Once you find a place you really like act quickly. Put in an application right away. The sooner you act the better chance you could have to rent the place.
The application process could take days, especially if you apply on the weekend. Agents may pre-screen your application on behalf of their client – especially if the agent asks as a property manager. Then it goes to the owner who then performs a background check on you. He may call your previous landlord, verify your employment, check your credit score, or call your references. After all this is done it could be a week – during that week anything can happen. More applications could be put in, for example.
Don’t wait until a month before you must move before looking for a place. If the above scenario holds true (1 week to review) and you are denied then you may have to start looking again and start the application process over again. Try to pick 2-3 places you like so that you can save some time in case you are denied. If you are denied ask why so you can be prepared when you put your next application in. Be honest with potential landlords and they may work with you. Honesty shows integrity even if your credit score doesn’t.
Ideally you want two months to look at rentals. Consider what time you have to shop around. Are you only free on Sundays? That only gives you 6 days, more or less, to find a new place to live. The 7th Sunday may be cutting it close – and that 8th Sunday should really be your move-in day. If things are just not working out and you need more time, talk to your current landlord. Can she give you an extra week or two? Can she put you on a month-to-month?
Be aware that different rentals have different application processes. Most likely, all rentals will charge an application fee of anyway between $30 – $60. It is possible this fee is non-refundable. This fee goes towards the costs of processing your application – if they look at your application and deny you based on your employment history then they haven’t spent any of your fee and you could get it back. If they like your application and perform a credit check they will spend some of your fee and if they do refund it the refunded amount will be less the cost of the credit check.
The application is per applicant and every adult planning on living there must put an application in. Also if there are more than three adults, landlords will typically qualify your application based on the two lowest incomes. Make sure your agent talks to the landlord or listing agent about your situation. If one of you makes significantly more than the other two – and he was planning on paying rent in kind – then your agent should point that out before submitting your application. If the landlord insists she will qualify only the two lowest then you might not want to submit an application to save yourself the time, trouble, and fee.
Earnest Money Deposits
Some rentals may even require you to put an earnest money deposit (EMD) down when submitting your application. This deposit is usually equal to the security deposit and is refundable if your application is not acceptable. However, these EMDs can cost your entire first months rent and that can add up fast and put a hold on your application process especially if you wanted to write 2 applications on 2 separate rentals. Yes you’ll get the money back but how many days before you actually see it? In addition, an EMD may help you out if your credit score is low or you have other unfavorable conditions. An EMD will make you look more serious to landlords.
It’s important to note than an EMD for rentals is treated the same way as EMDs for houses – it is deposited into an escrow account. Some places will allow you to use your agent’s brokerage’s escrow account and some will ask you to give it to them. In either case, in order to release an EMD both parties must agree in writing. Generally, if your application was rejected then you won’t have any problem getting it back. However, if the process has started and you change your mind you may face more opposition getting all or may even part of your EMD back. An EMD says you’re serious, so be serious if you put an EMD down.
With all of this said, our goal at McGlothlin Properties is not to scare or lecture you. Many of you are just coming into the professional world and it’s important to be well informed so that you can make the best decisions. If you ever need more advice or have any questions contact McGlothlin Properties at 703.594.0320 today and speak to a licensed agent. We want you to be able to find the best possible place you want and can afford!
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