{"id":6842,"date":"2017-08-30T13:38:05","date_gmt":"2017-08-30T17:38:05","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=6842"},"modified":"2023-07-24T12:56:08","modified_gmt":"2023-07-24T16:56:08","slug":"things-you-need-to-think-about-before-renting-an-apartment-part-1","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/things-you-need-to-think-about-before-renting-an-apartment-part-1\/","title":{"rendered":"Things you need to think about before renting an apartment: Part 1"},"content":{"rendered":"

When compared to buying property, renting an apartment is easy. Or is it? Renting an apartment is more than just signing some papers and then getting handed the keys. There are application steps, a competitive marketplace, and fees to pay. The rental market moves fast, especially in the bigger metropolitan areas, which might force you to act fast to secure an apartment. There are several things renters need to think about before renting, and a large part of that involves researching.\u00a0<\/span><\/p>\n

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Research and Inspection Stages<\/h2>\n

Basically, you can divide renting an apartment into two stages; the <\/span>research <\/span>stage and the <\/span>inspection <\/span>stage. The research stage being the stage before you actually view an apartment. Stage number two, the inspection stage, is the stage when you\u2019ve found an apartment you like and you\u2019re ready to sign the lease. <\/span><\/p>\n

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Step 1: Can Your Afford to Rent?<\/h2>\n

If this is your first time renting an apartment there are several things you need to consider. The number one thing being; Can you afford it? We get it. You want the best, you want the a-typical bachelor pad with all the amenities. But can you afford it? <\/span><\/p>\n

In New York City<\/a>, renters must adhere by the 40x rent rule<\/a>. Most landlords look for tenants with a yearly income that is 40x the monthly rent. To determine how much rent you can afford to pay, take your gross, pre-taxed income and divide it by 40. This will be the monthly amount you should look for when searching for apartments.\u00a0<\/span><\/p>\n

If you can\u2019t make 40-times the rent you might have to use other resources, such as using a guarantor<\/a>. The guarantor can be a person you personally know, like a family member or close friend with an established credit history. The guarantor can also be a third-service that you hire.\u00a0<\/span><\/p>\n

Step 2: Use a Guarantor<\/h2>\n

So you got someone who is willing to be your guarantor, great! All set then, right? Not that fast. Just as a landlord\/agent will be demanding you as a renter meet certain requirements, the same goes for a guarantor. Usually, a guarantor, also known as a co-signer<\/a>, have to meet certain requirements because they take on the responsibility of covering the cost of rent if you as a renter for some reason can\u2019t. <\/span><\/p>\n

Guarantor Requirements<\/h3>\n

Normal requirements for a guarantor are usually as follows: <\/span><\/p>\n

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  1. A guarantor is required to make at least 80 to 100x the monthly rent to ensure they are financially stable to cover any outstanding debt if you as a renter can\u2019t. <\/span><\/li>\n
  2. The guarantor must be local to the area you’re renting in. Some landlords may allow further away guarantors.\u00a0<\/span><\/li>\n
  3. Most landlords and agents only want one person to appear as the guarantor. <\/span><\/li>\n<\/ol>\n

    If you can\u2019t find someone that covers those three requirements, all hope is not lost. There\u2019s always the option of using a guarantor service. Take note that such services usually charge a high fee. This again prompts the question: can you afford to rent the apartment?\u00a0<\/span><\/p>\n

    Learn more:<\/p>\n