Most people, if they are not independently wealthy, will end up renting a home at one point or another. Whether this means you live in an apartment for a period of years or simply grab a house for a few months at a clip, it is essential to understand the financial pitfalls that may await. Real estate agents and landlords tend to be all smiles at move-in, but such relationships can quickly grow toxic once damages and repair are on the line. It is for this reason that experts recommend keeping assiduous records and a detailed paper trail throughout the duration of your tenancy.
The most important step you take to avoid trouble down the line is a thorough walk-through. Too many would-be renters agree on the spot and move in within days – long after the time has passed to conduct a detailed investigation of the premises. The result is all too familiar – major disputes over the condition of the property when it comes time to move out. Just a few hours of dedicated attention are all you need to record everything about the condition and operation of that home. Pay special attention to door frames, HVAC units and kitchen appliances, as these have a tendency to break quickly after move-in.
You also want to look into the habits and record of the property owners. A growing phalanx of websites have appeared that allow renters to evaluate their own amenities and landlords – check these before you sign any contract. You may also want to speak to governing city and state agencies about your rights as a renter and what you can expect in terms of liability. Finally check the Better Business bureau and see if any liens or claims have been drawn against the owners – too many data points and it can get hard to deny a pattern.
Once you have moved in, it is essential to arm yourself with quality renter's insurance. Landlords maintain their own insurance policies to protect against liability they may owe you – it is wise to do the same on your own behalf. Most renter's insurance allows for itemized lists that include your most valuable possessions, and some even include replacement cost values rather than existing values. Beware, however: most renter's insurance will not protect against earthquakes, flooding and other "acts of God," so you may want to look into supplemental insurance if you plant to live in a high-risk area.
The good news is that most major rental companies take the responsibility of home ownership off your hands appropriately, leaving you with a hassle-free and convenient living arrangement. As you move up into nice apartments and freestanding homes, it pays to maintain strong relationships with the renters in case of any unforeseen events. Litigation should only be used as a last resort, so read your contact carefully if you want to avoid ugly and expensive deliberations down the line. You'll be glad you protected yourself during an often unpredictable process.