Moving out on your own for the first time can mean freedom, but it also mean financial responsibility. While living at home, you likely had a little leeway in covering your expenses, a leeway that will no longer be there once you sign that first lease and settle into your first place. Make this process as painless as possible by not making these common mistakes.
1. Not Purchasing Renter’s Insurance
The number one mistake first time renters make is not understanding the importance of purchasing renter’s insurance. Many believe that the loss of their property in a fire or theft would be covered by any insurance policy the landlord has on the property. However, most homeowner’s insurance policies relating to investment or rental property specifically exclude property owned by tenants. In the event of a loss, not having a renter’s insurance policy means you won’t have any help replacing the personal items that are lost or damaged.
2. Not Knowing How Much You Need
For those moving out on their own for the first time, there are lots of unexpected expenses that can creep up and bite you if you aren’t prepared. In order to determine how much rent you can afford, you will need to create a budget that shows all the money coming in and going out. The consequences of breaking a lease can be expensive and breaking a lease can make it difficult to get another lease in the future. Before you sign a lease, make sure you can afford the rent and all other expenses relating to the property.
3. Not Paying Attention to How Much You Have
Now that you are going to have a financial obligation, you need to pay attention to where your money is going. It is great to have a budget, but you also need a way to track that budget and make sure you are spending your money where it matters most. Living on your own means you will need money for things you haven’t likely been responsible for before like toilet paper, groceries, and gas.
4. Not Reading the Lease
Just like with any other legal document that you must sign, you need to read the lease in full before signing. This is important advice for all renters, not just those who are renting for the first time. The lease is the contract between you and the landlord and outlines all the conditions and exclusions associated with the rental agreement. In order to be sure you know what you are responsible for and what the landlord expects from you, you must read the lease prior to signing it.
5. Not Completing a Formal Move-In Inspection
Prior to moving into your apartment, it is critical that you perform a walk-though with the landlord that results in a documented list of any defects in the property. You need to take this step to protect yourself before you take possession of the property. Documenting any flaws or damage before you move in ensures you won’t be held accountable for those damages when you move out.
- Renters Insurance Information (canyonlandsagency.com)
- Homeowners and Renters Insurance (usa.gov)
- Getting the Renters Insurance Company Working for You (about.com)