Most colleges and universities offer a wide variety of classes, ranging from liberal arts staples to career-specific electives to completely off-the-wall choices. (Vampires, anyone?) But what you won’t find in most course catalogues is “Renting 101.” That’s a shame, because plenty of graduates are about to embark on their first apartment-hunting adventure…and they have no idea what they’re doing.
By the way, that student apartment off campus with its individual lease (paid for at least in part by Mom and Dad) and rental cycles that echo the academic year doesn’t fully count.
“Apartments that cater to college students are apartments with training wheels,” says Jonas Bordo, CEO and cofounder of Dwellsy, and coauthor along with Hannah Hildebolt of Everything You Need to Know About Renting But Didn’t Know to Ask: All the Insider Dirt to Help You Get the Best Deal and Avoid Disaster (Matt Holt, August 2023, ISBN: 978-1-6377439-2-8, $21.95). “They’re kind of a step between dorms and ‘real’ apartments—but most grads will find they don’t fully prepare them for the real-world apartment search experience.”
In recent years, renting has become more competitive, expensive, and complex to navigate. First-time renters are especially prone to making inadvertent mistakes that lead to being unaware of available rentals, having every application rejected, getting scammed, budgeting incorrectly, and more. (“In the surprisingly high-stakes world of apartment hunting, settling for a rental that doesn’t check all your boxes is far from the worst outcome,” notes Bordo.)
The good news is, when you’re armed with background knowledge, proven strategies, and best practices, you’ll be all set to ace this real-world test.
With several decades’ experience as a renter, landlord, property manager, and current CEO of the largest U.S. rental marketplace, Bordo is a trusted authority on all things rental-related. So, put your study skills to use one more time and bone up on how to surmount these eight obstacles you might face as a first-time renter.
Obstacle 1: You don’t know how to navigate the rental process. It’s a lot more complicated than Googling listings, touring apartments, and signing the lease for the unit you like best. You need to know how to accurately set a rental budget, where to safely search, how to send out inquiries, which documents to have on hand, what to look for (and what to ask the landlord) during a tour, and more. And if that’s not enough pressure, you need to do all of this quickly.
“Finding a rental is very much a first-come, first-served process,” explains Bordo. “If you’re second in line to see a place, your odds of getting it aren’t as high as they would be if you were first. If you’re fifth in line, your odds are 5 percent or less. And here’s the thing: In a really hot market, the difference between first and fifth place can be just a few minutes.”
Not sure where to start? Bordo’s book, Everything You Need to Know About Renting But Didn’t Know to Ask, is a great resource. It covers the entire process, from preparing for the rental search to getting your security deposit back after—and you can easily skip to the section you need. Dwellsy’s blog also has lots of free articles with tips and best practices for renters.
Obstacle 2: You’re a prime target for scammers. As we’ve established, rookie renters have a lot to learn. That’s not your fault—but it does put you in fraudsters’ crosshairs. Scammers are adept at pretending to be convincing landlords, and they shamelessly take advantage of first-time renters’ inexperience—as well as the urgency they may feel.
“The online marketplace, combined with the ability to instantly transfer money via tools like Zelle and Venmo, has played right into the hands of fraudsters,” Bordo notes. “If you don’t recognize red flags that might signal a scam, you’re more likely to become a victim.” NOTE to EDITOR: See attached tipsheet for more information on avoiding rental scams.
Obstacle 3: You don’t have enough savings to pay up-front fees. Many first-time renters are surprised that they’re required to pay application fees, credit check fees, background check fees, and more. And for some, their meager savings simply can’t cover the security deposit and first and/or last month’s rent, which almost all landlords require. Before giving up, try to negotiate.
“Landlords tend to be most interested in protecting their ‘base rent’—the amount you pay every month,” says Bordo. “That means some are willing to be flexible on one-time fees. Be honest about your financial situation (more on that later) and offer something in return. Maybe you can
move in earlier, pay a higher monthly rent down the road, commit to a longer lease, or not utilize a valuable parking space. If you’re renting from an individual landlord, you might even offer to help out with maintenance and/or yard work.
“Also, if you haven’t considered it already, finding a roommate can defray these fees—not to mention all other recurring costs,” he adds.
Obstacle 4: You don’t have a rental history—which means you can’t obtain references from past landlords. Landlords often ask for these because they want to know you’re a reliable tenant who will pay rent on time, be easy to communicate with, and won’t trash their property. If you don’t have a rental history, references from people who can vouch that you’re responsible and trustworthy can help. Make sure these don’t come from people like parents or close friends, because to a landlord, these are biased sources.
“Good references might include a former work, volunteer, or team supervisor who can attest to your timeliness and dependability,” says Bordo. “A professor or mentor might speak to your character and maturity. You might even pull in a resident advisor (RA) or student housing staff member. Consider proactively obtaining a letter of reference from these people so the landlord doesn’t have to spend time reaching out.”
Obstacle 5: You have a skimpy (or nonexistent) credit history. Landlords care about credit scores because they reflect how much debt you have, and how well you’ve paid it back on time. But what if you don’t have a credit history—or what if a large amount of student loans has lowered your score? Some landlords—particularly those who utilize property managers—are inflexible in this area. But others, especially individual landlords, may be willing to overlook your credit score…if you’re honest about your situation and provide a few extra assurances.
“I often advise renters in this situation to proactively obtain references from people who can attest that you’re a reliable person—we’ve already discussed those,” says Bordo. “You could also ask someone with good credit (perhaps a relative) to cosign your lease or look for a roommate with good credit. If it will be financially possible after you start your new job, offer to pay a larger security deposit or sign a longer lease to offset your landlord’s risk.”
Obstacle 6: You need proof of income—but your new job hasn’t started yet! Most landlords request proof of income, and some even have income requirements (often, at least three times the cost of rent). Let’s assume you have a job lined up, and you need to secure housing before your first day on the job. Your best bet is to (again!) explain your circumstances to your landlord, and provide any additional documentation you can.
“An offer letter that includes your future salary will reassure many landlords,” Bordo says. “If you don’t have that, ask your employer’s HR department to provide a letter verifying your employment and expected earnings. Be sure to provide contact information so your landlord can reach out directly to your employer. Looking for a cosigner or roommate with proof of income can also help you past this temporary obstacle.”
Obstacle 7: You don’t have renter’s insurance. Many landlords require renters to prove they have purchased renter’s insurance. Even if yours doesn’t, it’s still a good idea to obtain a policy. (Yes, your landlord should already have insurance—but it protects the building, not your personal property inside it or the people who might visit you.) No matter how careful you are, there’s a lot you can’t control: theft, fire, a drunk and disorderly neighbor, burst pipes, etc.
“Obtaining renter’s insurance might sound intimidating for a first-time renter, but good news: It’s fairly affordable and easy to get,” Bordo says. “I recommend looking for a policy with personal property and liability coverage, which protects the property against damage you might cause to it. It can also provide coverage if someone else injures themselves in your rental.”
Obstacle 8: You don’t know how important it is to read your lease. We’re all used to scrolling through various user agreements and signing without reading (much less comprehending) a single sentence. Don’t do that with your lease! Be sure to read and understand every word. Your lease should clearly cover the cost of rent and other fees, how to pay, what happens if a payment is late, and when your obligation begins and ends. Note any other clauses that might affect you, like how many people can live in your place, whether you can have a pet, what the landlord’s right of entry is, and if there are any community rules or banned activities.
“You want to identify any dealbreakers before signing the document,” says Bordo. “If something isn’t clear, ask the landlord to explain it. Pay special attention to fees and fines you might be responsible for. This is an area that tends to trip up many first-time renters, because they (often wrongly) assume that the cost of rent will comprise the bulk of their monthly rental-related expenses.”
“Like many ‘firsts,’ your first apartment search is likely to have a steep learning curve,” says Bordo. “In most markets, you can’t wing it and expect to effortlessly find a rental. The more prep work you do to educate yourself and prepare for obstacles, the better your chances will be.
“Finally, remember that this is your first apartment—not necessarily your forever apartment,” he concludes. “Especially if you’re entering this process without established credit, a rental history, or your first paycheck, you may have to compromise on some features you’d like to have. (Just make sure you’re prioritizing safety and affordability!) When your first lease is up, you can leverage your newly acquired record as a stellar tenant to upgrade to new digs.”
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