10 First-Time Renters Mistakes Young Adults Make

On the last episode- The Hidden Costs of Renting An Apartment, I talked about asking the right questions to prevent rent being more than 30% of your paycheck. Besides hidden fees, there are other horrible first-time renters mistakes some young working class adults make. This is to avoid rent becoming a burden, which may end up making your life miserable.

Why does this matter?

You will agree with me, life should not feel like you are working just to pay bills. It is a possiblility which could happen, when you get yourself in any bad contract. Whether it is a bad lease or credit cards, the feeling is the same. So, this article is written to ensure your apartment checklist is all checked off prior to signing a lease.

What Mistakes Do First-Time Renters Make?

Below are what I think every young working class adult should do first, prior to getting a place of their own. You will save yourself from debt and ruin.

1. Not Asking About Hidden Fees

Some apartments come with hidden costs, which are not discussed during a rental application. Some of these hidden fees include pest control, maintenance, sewage or trash collection. You see, whenever an apartment tells you what to pay for rent, they may not talk about these aspects.

As a result, you sign a lease incurring additional rental expenses. I encourage you to ask about a detailed estimate of all additional rental expenses in addition to your base rent. This will give you an idea of what to expect monthly.

Otherwise, apartment hidden fees will stretch and exceed your apartment rent budget. If it is possible, ask for a copy of your rental expenses. Most apartments will oblige.

2. Exceeding Your Rental Budget

On how much should you spend on rent article, I talked about keeping rent less than 30% of your monthly paycheck. You can do this through having a rental budget. Renting above your means is financially stressful. This is especially, when you have to work more than your usual hours to make rent.

Yes- it is a thing. How do I know?

I knew peers in college, who were working long hours to pay rents in luxury apartments. Meanwhile, they were others who worked less and made rent in affordable apartments. So, how much should a first-time renter spend on rent?

Well, it all boils down to having a budget prior to renting. When it comes to renting an apartment, your goal at this point in life is affordability. You want to be able to pay rent without it eating deeply into your paycheck. And, the goal is to keep your rent less than 30% of your paycheck.

3. Signing A Lease Without Reading It

I feel this is the prevalent first-time renters mistakes young adults make. This is because a lease contract has a lot of pages and some people do not want to spend time reading them. But, whatever people do not think about is whatever you sign holds up in court in case a civil dispute.

Do you know that?

Never sign a lease without reading it. I know- it is a lot of pages. I hate doing it too, but you have to do it. Or, you could end up paying way more than you agreed for rent as a result.

4. Forgetting To Research About Neighborhoods

I advocate for affordable apartments, but it has to be in a safe side of town. Living in a crime invested part of a city could actually get you in debt. This is especially, when you did not research the crime rate of the area you are interested in moving to.

Why is this important?

There are some neighborhoods where cars are bulgarized on a weekly basis. If you happen to move into such a neighborhood, your car insurance premium could go up as a result. Also, your car or apartment could be broken into.

I always make it a point to ask leasing offices about this fact. Some may lie about it, but their online reviews do not. Research the area you want to move into, it is important for your safety and sanity.

5. Applying For Apartments Online

Applying for apartments online exposes you to apartment scams. This is especially on apartments-for-rent platforms like Craigslist, Facebook or Zillow. Not that these are not legitimate places, but scammers are good at getting to first-time renters through these platforms.

On how to avoid apartment scams podcast episode and article, I discussed ways to identify and avoid these scams. Personally, I recommend going to an apartment leasing office to see the place for yourself. Never ever send money online or social security information, unless directed by a legitimate apartment office. Reddit is full of victims who lost money this way. You can google it, if you doubt me.

6. Agreeing To Use Your Apartment’s Renter’s Insurance

Getting a renter’s insurance from an apartment is more expensive than getting it elsewhere. An apartment I rented in 2022, tried to charge me $45 monthly for renter’s insurance. This is after it stopped tenants from using Lemonade insurance.

With Lemonade, I was paying $8 monthly. Although the whole year is charged upfront, it is still better than paying $45 monthly. You save $444 a year, when you decide to use cheap renter’s insurance like lemonade.

So, I recommend looking for renter’s insurance cheaper than what your apartment is offering. It makes sure you are not spending a lot of money on rental expenses. As a result, your rent is kept below 30% of your monthly paycheck.

7. Failing To Inspect Unit When Move In

One of the mistakes you could make as a first-time renter, is not to fill the initial inspection form and turn it in. It saves you from paying for damages you did not cause during your lease term. Here is what I mean.

Let us say the carpet was stained during your initial inspection at move in, you just note it on the paper given to you. On the day of your move out, apartment cannot charge you to remove the stain. This is because it came with the apartment.

In situation where this is noted initially, it could result in your security deposit being garnished by the apartment. Sometimes, some apartments have the audacity to ask for more money to fix whatever damage they think you did during your lease. Hence, the importance of inspecting the apartment and reporting to the leasing office during your move in.

8. No Due Diligence On Roommates Before They Move In

If you have seen Netflix’s Worst Roommate Ever documentary, you will know it is not an easy job to accept a stranger as a roommate. Not just a stranger, but someone you do not know close to home. It is always a risk.

But sometimes, the high cost of living in most American cities force young working class adults to seek out roommates. When you find yourself in this situation, it is best you do your due diligence on the person. What do I mean by this?

I mean you make sure it is someone who has a steady job, an income and a good temperament. This is because things could get really bad in a short period of time with none of these requirements. I will not tell you the horror stories, but I recommend you check out the Netflix documentary.

It has enough chills to make you take this issue seriously. Also, I recommend you listen to the podcast episode- Is It Smarter To Get Roommates Or Just Live Alone. I talked about going about it the right way.

9. Not Asking About Penalties For Late Payment Of Rent

Some apartments can charge you up to 12% fee for late payment of rent. During an apartment inquiry, ask about this fee. This is because you do not want to be surprised by its amount, whenever you miss a rent payment date.

Depending on what state you are in, there are regulations to these late fees. Your apartment should be able to tell what it is. I feel like knowing about this fee keeps you from incurring them. You can ask them to have it in writing. I always want everything in writing, just in case I need to bring up an issue pertaining to that.

10. Reporting Maintenance Issues Late

Reporting maintenance issues late could make an apartment charge you for tear and wear on the unit. It occurs during a move out process. While you are still renting, most apartments are responsible for maintenance issues. However, letting maintenance issues pile up until the last day of move out could constitute a problem. One of the first-time renters mistakes young adults make to be aware of.

Be on maintenance issues which need fixing. Otherwise, you are postponing the inevitable cost of paying to fix them. Trust me, when I say your security deposit alone will not be enough to cover such a cost if it gets to that point.

I know what it feels like to be a first-time renter. It is nerve-wrecking. However, you can avoid these first-time renters mistakes young adults make, when you take them seriously. Having said, I wish you a great renting experience!