When you’re ready to sign a lease, you’ll have more costs to consider than just the security deposit. Just as buying a house comes with numerous related costs, so does renting a home – whether it’s a single-family house, townhouse, condo or apartment.
Common costs associated with signing a lease include:
• Security deposit
• First and last month’s rent
• Pet fees (if applicable)
• Utilities deposits (to initiate service)
• Renter’s insurance to protect your belongings
• Moving expenses
Good credit not only makes it easier to get an apartment at times, it can make managing related expenses easier, too. Landlords may ask for a higher deposit, or reject you altogether, if your credit report has blemishes. Likewise, utility providers, such as the electric company or phone company, may require a deposit if their review of your credit raises concerns.
Before you go apartment-hunting, it’s a good idea to build up your savings and your monitor credit behavior as much as possible. Saving the cash you’ll need to cover deposits and other lease-related expenses will help reduce the amount of credit you might need to get started in a rental.
Improving your credit behavior prior to renting can help make you a more appealing tenant to landlords, and may qualify you to have security deposits waived for some utility providers.
Leasing an apartment should be a positive experience. Preparing for it by building cash reserves and paying down debt is a good way to ensure debt doesn’t become one of the costs of signing a lease.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2013 ConsumerInfo.com, Inc. All rights reserved.