The decision to rent a house is a great one that will change your life for a very long time. There are many reasons you could have decided to rent a home instead of buying one. Maybe you aren't quite ready for the commitment. Perhaps, you need to work on your credit for a little while longer. Maybe you want to see what it's like to rent one before you buy it.

Renting a home is a big deal, and there are some things you need to know before you do it. These are 20 things you need to know before you go for it:

1. Can You Afford to Rent a House?

The first and most important question you need to answer is whether you can afford the rent. It's time to start doing some calculations if you haven't yet done them. The first calculation you'll need to make is the one that tells you how much usable income you have available each month. To get this figure, you must total all of your monthly income and subtract all of your monthly expenses from that.

Be very thorough in these calculations and leave no stone unturned. When you calculate your expenses, you should add household expenses, credit card bills, fuel and gas money, and anything else you can think of. That will give you a more realistic ending figure. The remaining figure will tell you what you have left after you allocate all of your other money. Then, you'll need to ensure that you leave yourself some money left over for incidentals and pocket money. For example, you might not want to rent a home that costs more than $1,000 a month if you only have $1,500 of useable income each month. You can start looking for places for rent once you know your price range for home rentals.

2. What Are the Terms of the Lease?

Before renting a house, you must gain a thorough understanding of the rules, regulations, and conditions the homeowner wants you to abide by. You can find that information in the lease. The lease will tell you everything from the start and ending dates of your rental to what you can and can't do on the property. Leases usually consist of several long pages of information. It's vital that you read every word, whether it's big or small, so that you know all of the legally binding terms of it. You might even want to hire an attorney to help you read through it so that you're well informed.

3. How Much Is the Security Deposit?

Most homeowners who are renting a house will want their new tenants to pay a security deposit. The security deposit protects the homeowner in case the property gets damaged or the renter defaults on the rental payments.

The law obligates the homeowner to keep your security deposit in a bank account while you're renting the home. They must return your security deposit when you move out if you leave everything as it was before you moved in. Before renting a house, you need to know:

How much your security deposit is
Where the homeowner is keeping it
What the requirements are for getting it back

4. What Utilities Are Included?

You'll need to know which utilities are included and which utilities you'll need to pay. You should be able to find that information in your lease, as well. However, you should discuss it with the prospective landlord before signing anything or committing to renting a house. Some homeowners will quote you a rental price that includes utilities such as electricity and cable, while others will want you to open your own accounts and pay those bills separately. Opening new accounts in your name may be costly as the utility company might want you to provide them with a security deposit.

5. Will There Be Rent Increases?

Rent increases are something that you need to question before renting a home. A landlord cannot raise your rent during any time that a valid lease is in place. Therefore, your rent will stay the same until the period specified in your lease ends. After the lease ends, the landlord may have the right to raise the rent upon lease renewal. At that point, you can choose to accept the new rent amount or move out after your first lease ends. It's a good idea to question a prospective landlord about the rental increases before you go too far with your deal. Some home and property owners only offer one-year leases because of their desire to increase rental costs every year.

6. Can You Run a Business From Home?

You may want to run a business from your rental home if you have an entrepreneurial spirit. You might want to become a driver and give people rides to where they need to go. You might want to rent one of the house's rooms to other people who need a temporary place to say. You need to discuss side gigs like Airbnb with the homeowner before you rent the house. You'll also need to read your local and federal laws to determine your rights.

7. Will You Have the Option to Buy?

You might wonder if you'll have the option to buy the home after completing your lease term. That depends on the homeowner and what they intend to do with the property. It's very possible that they might need someone to take over the home. The time you spend renting from them can make them more comfortable about selling the home to you when your lease term ends. Discuss these options with the homeowner before you rent the property. You could even ask this person if he or she will be willing to put the conversion information into the lease and make life easier for everyone involved.

If you are interested in getting a mortgage loan, enter your information below to get potential lender options:

8. Who Will Pay for Repairs?

Another thing you should work out before renting a house is who will pay for the repairs and issues. A home is bound to have some problems while you're there. These problems include plumbing issues, water heater breakdowns, pests, electrical problems, and the like. You need to find out who will be responsible for repairs while you're renting the home. Some homeowners take the brunt of the costs. Other homeowners opt to share the responsibility with the renters. Some homeowners may want their tenants to take care of the costs when something happens. Don't forget to bring this up with your prospective landlord and talk to the person about it. Don't be afraid to negotiate a little bit if you don't think you should pay for all the costs.

9. Will the Owners Use the Home?

One of the most embarrassing situations to be in is a situation where your landlord shows up unannounced and starts using the house. For that reason, you should be sure to have a long conversation with the homeowner about home use, visits, and expectations. Again, each person is different. One landlord might not want to go anywhere near his or her property while someone else is renting it. Another person might want full access to the home for a variety of reasons. It's up to you to find out where your landlord stands and decide whether you're okay with that or not.

10. Is the Home in Foreclosure?

You should find out how stable the homeowner's situation is before renting a house. Knowing whether or not the home is in foreclosure is extremely important. In the past, some people had gotten into bad rental deals where the banks foreclosed on the home before the renter's lease was up. Stay on top of this situation if you don't want that to happen to you. You're allowed to request information from a prospective landlord just as they are allowed to request information from you. Don't hesitate to ask for proof that the person's mortgage payments are current before renting a house.

11. Will the Owners Allow Subleasing?

You might want to know about subleasing if you have some ideas to make money while you're staying there. A sublease is a lease that's separate from the one you have with the homeowner, but it still falls under your lease. A subleasing situation will occur if you rent the extra room to another person in one of the houses you rent. You have to make sure that the landlord is okay with you doing that, and you need to get it in writing. If you don't get it in writing, then it's up to the homeowner.

12. What Adaptations Can You Do?

Another thing you need to find out before you rent a home is whether or not you can adapt to the home and which adaptations you can do. For example, you might not like the paint in the bedroom. You have to find out whether the homeowner will allow you to paint the room if you don't like the color or if you have to leave everything as it is. Another option might be to talk to the landlord and let that person know you're not happy with the color and would like it to change. The landlord may be willing to have someone come in and change the color for you.

13. Can You Have Pets?

Your landlord's rules regarding pets are something that you will need to know very early in the game. Some homeowners don't want any pets in their homes at all because of stains, smells, dander, and the like. Some homeowners will allow pets on the property if the tenant is willing to pay an additional security deposit that can be withheld if the pet does any damage to the home. It's better to find out before you rent a home than to try to sneak a pet into the home against the homeowner's will. You stand the risk of getting evicted if you break a rule in the lease.

14. What Is the Surrounding Area Like?

You should research the surrounding area before you rent a home. You'll need to know if it's a good place for you to flourish and thrive. Check the crime rate to see how many crimes occur in your prospective town. Take note of how many of these crimes involved home invasion or extreme acts such as homicide. ADT and Spotcrime are two sites you can use if you want to check criminal activities in a specific area. There are many other sites where you can conduct thorough research, as well.

15. What's the Employment Rate There?

Your goal should be to live in an area where you can easily find a job if you lose your current one. Therefore, you should find out what the employment rate is in nearby towns before you rent a house. Also, pay attention to the types of jobs that become available frequently. Not all jobs are gems, and not all of them will be able to take care of your family and your bills. Take the time to visit the unemployment site and check the numbers. A town with a high employability rate is the most fruitful place to move to.

16. Are the Schools Good?

You might want to send your children to school from the home your moving into. For that reason, you need to research the school district as well as the individual schools. Your kids deserve the best education they can get.

17. Is Public Transportation Nearby?

Next, you need to think ahead a little bit and consider what might happen to you. For example, your car might break down one day, and repairs might be costly and time-consuming. A great way to combat that is to live someplace near public transportation. That way, you will have an alternate mode of travel, and you can always find your way to work.

18. Is Anything Defective in the Home?

You will need to run an inventory of all the items in the home that belong to the homeowner. You'll also need to ensure that no damages are anywhere in any of the rooms. We suggest taking a camera with you and taking shots of everything so that you have protection if any disputes arise later on. Damages and missing objects can affect your security deposit. You can improve your chances of getting your security deposit back if you take those pictures initially.

Buy, Sell, Rent - Learn How with the Accury Store.

get member key

19. Can You Move Out Before the End of the Lease?

When you sign a lease, you don't intend ever to have to break it. However, sometimes things happen that require people not to meet their legal obligations. Make sure you read the fine print in the lease because it will tell you what will happen if you break your lease all of a sudden and move somewhere else. One of several scenarios could occur. Your landlord could ask that you pay the balance of all the rent that you would have paid if you continued the lease. The landlord might absorb most of the costs and charge you a small fee for breaking the lease. There could also be a 50/50 split. Ask about this before you sign the paperwork.

20. What's the Cost of Homes in the Area?

Lastly, you need to know the cost of homes in the area. You probably want to buy a house in the future. If that's the case, you will need to do some research and ensure that the area you want to live in is affordable enough for you to be comfortable in life. Make sure that the cost of homes where you are is similar to the cost of the home you're renting. If everything matches up, then you can start applying for homes when you get a chance. You'll most likely secure one for yourself.

Contact Us for More Information

Now you know of some of the areas you should research before you rent a home. We hope you have a better understanding of how to protect yourself before you rent a property. Feel free to contact us if you need and advice or information regarding the home renting process. We have a staff full of caring agents who can connect you with real estate professionals, lenders, credit counselors, and the like.

Our company is comprised of a team of consumer advocates. Every one of us aims to fortify everyday consumers with the information and assistance they need to take charge of their finances. We do this by connecting our clients to an array of educational materials, lenders, and experts. We are not a lender, but we work with lenders all the time. We can help to ensure that you apply for your funding with a reliable and trustworthy lender. We also offer a wealth of information in our database for educational purposes. Don't hesitate to reach out to us if you need anything at all. You might find that we have much more to offer you than you think.

What You Need to Know Before Renting a House