What should I expect in a rental?
First you need to ask yourself a few questions. Are you relocating and, if so, for how long? Are you testing out a neighborhood or are you unsure you can afford to buy a home?
You need to determine the location you are considering and its proximity to work. If you want a residential neighborhood then you need to know if there are apartment buildings to choose from or mostly house rentals. If you have children then you need to determine whether your child will attend a private school or use the public school system.
When you rent in a building generally they will have a management company that oversees the day-to-day operations and have set prices for the units they rent. You will want to know if there is a doorman or super in the building both for security or if something needs to be serviced in your apartment. You will also want to make sure that you either have a laundry access in your apartment or on the premises. The condition of the unit and the interior of the building should give you a clear indication of how the building is maintained. You also need to inquire whether the building has a garage and what other fees are associated with the unit and how long a lease they are willing give you.
Renting a house is quite different. In addition to the rent you will generally have to pay additional fees for landscaping and snow removal, unless the landlord is including these items in the rent. Some neighborhoods require you to pay for garbage removal too, so it is important to find out what fees are associated with living in a particular neighborhood. When you rent a house you are spending more money for utilities that generally are more costly for a whole house. Of course there are benefits to living in a home that offers more space, privacy, your own garage and a backyard to enjoy.
It is always a good idea for you to get an idea if your landlord will be selling their home at some point in the future in case you decide you might want to buy it or to determine how long you can actually rent the home. You want to make sure your quiet enjoyment is not disturbed by agents showing the house for sale while you are renting, as this can be quite disruptive. If you do agree to this, then the price you are paying should reflect this accommodation. You should also drive around the neighborhood you are considering both at night and during the day so you have an idea about the noise and other residents that live in and around the area. Who are your immediate neighbors?
Fees associated with renting include one and a half months rent security, which you get back at the end of the lease, less any damages; first month’s rent and one month’s agent fee.
Prior to moving into any rental you should check for any damage, dents or marks and that all the appliances are in good working order. If there are any issues, it should be discussed with the landlord before signing a lease. If the landlord is unwilling to pay for some of the repairs and you are ok with this make sure these imperfection are stated in your lease, so you are not later accused of causing the damage, so your security deposit will remain intact.
Tenant’s insurance is required for all rentals and is a generally a written requirement in all leases. This provides protection for your belongings and provides liability coverage if someone is injured in your apartment.
Pets: Many landlords do not allow pets. Landlords do not want your pet to ruin their home no matter how well behaved they may be. So this can narrow your search dramatically. So if you are thinking of getting a pet, you may want to wait until you purchase your own home.
Should I buy or rent?
Generally, what you are paying in rent could be the equivalent of the expenses of paying off a mortgage, building equity and obtaining a tax deduction. Of course you first need to see if you are qualified to purchase a home and what you can afford. The best way to determine this is to speak with a mortgage broker to see what your options are financially. If you can buy a home then you would be better off to do so. You may consider a two-family house where you live in one apartment and lease out the other. This would give you your privacy, and the rent of the other unit would pay towards the expenses of the house. Or you could get a roommate to offset your expenses, but you would still own the house.
If you can afford to purchase a home entirely on your own without having to lease any part of it then you want to choose a solid home that best meets your needs in a desirable location. It would be advisable to work with an accomplished realtor that can negotiate the best possible price on your behalf and guide you through the process of purchasing a home.
By Nicole Idler
Nicole Idler is a NJ/NY Associate Broker at Friedberg Properties. She can be reached at [email protected] or 201-906-9338.
