What Do You Need to Rent an Apartment Now That You’ve Graduated College?

Whether you’ve resided in a dorm, lived in off-campus housing, or commuted to class from home, you’ve had experience as a tenant throughout your college career. Now that you’ve graduated, you may be wondering how to rent your own apartment – and where to begin.

Renting an apartment is a huge step towards gaining financial independence, but it can be intimidating looking for a place to live, especially if you’re a first-time renter. Before you start renting, you need to answer a few questions first. Let’s break it all down, step by step:

Looking for an Apartment

Before you can start paying rent, you need to know where you’re going to be living. It sounds obvious, but there is a lot to consider when thinking about where you’re going to live, including how much money you should have saved up before you’re ready to move out, what amenities you want, which utilities are included, and your timeline to move into your new place.

How Much Should I Spend on Rent?

Experts recommend that you have four months of living costs saved up before you rent an apartment. How do you know what four months of living expenses will cost? Take a look at your recent bank statements -- how much you’ve spent over the course of the last four months will be a close estimate for what you’ll spend in the months upcoming. You’ll also obviously need to factor in the amount of money you’re planning to spend on rent, too, so make sure that is included in your savings.

A good rule of thumb is that your rent should be about what 30% of your salary is. You should calculate how much you should be spending on rent to find the apartments you’d be able to afford.

Moving is also an expense, even if you’re not hiring movers. You’ll still need to stock the pantry, fill your fridge, load up on toiletries, get furniture or decorations for your new place, and save up for that pizza party you’ll host when you’re all moved in, so make sure you have a little bit more saved up than you normally would.

Location Is Everything

Consider where you’ll be living. How close are you to work, and how costly will that commute be? If you’re working from home, are there more affordable areas to move to? These are all important questions to consider for where you want to live.

If you have to work in-person, it’s good to know how you’ll get there in the most timely and cost-efficient way. Living downtown, especially in a city, sounds nice, but it could also be very pricey, and you may have to commute to the office. Whether you have a car, take a train, bike, etc. all comes down to what’s feasible given the distance you live from work. You should also look into how much traffic you’ll have to deal with – thanks to modern technology, you can see in real-time how long it would take you to get to and from work. Having a commute that’s longer than an hour is exhausting and likely not worth the money you’d be saving by living so far away.

Note that commuting can also vary based on affordability, time efficiency, and sustainability. It’s up to you to determine what values are the most important when it comes to getting to and from work. Commuting styles include:

• Driving a car
• Trains
• Buses
• Biking (e.g. Citi bikes, personal bikes, etc.)
• Walking
• Motorized scooters (e.g. LIME, personal scooter, etc.)
• Carpooling
• Company vans/vehicle sharing (e.g. Uber, Lyft, etc.)

When looking for a job, or if you work from home, you can look into regions where the cost of living is lower. For example, the price of an apartment on the coast will look different from one inland. There are tons of variables, but if you have flexibility to decide where you want to live, take advantage of that.

Keep in mind that certain climates will also influence your finances. If your AC is running all year, your electric bill will be much higher than if you were in a cooler climate. The same goes for heating – your gas bill will look different if you’re residing in snowy Michigan than in the Florida tropics.

You should also consider how close or far away you live from things you care about or use regularly. Distance from friends and family, the grocery store, your favorite gym, etc. are all important to consider. While you need to focus on financing your living situation, it’s equally important to make sure you actually enjoy where you live.

Are Utilities Separate?

While it would be great if rent covered everything you’d need to live in an apartment, this isn’t the case. Utilities typically include:

• Internet
• Cable
• Streaming Services
• Electricity
• Gas
• Heating
• Phone Services

When apartment hunting, ask what utilities will be covered, and what you’ll have to cover yourself. It’s common for a landlord to cover the cost of water, garbage, and sewage – meaning that your rent already covers these.

Be sure to check out what amenities are included in your apartment – you can save a lot of money if your apartment complex has a washer and dryer, for example, so that you don’t have pay to do your laundry at a laundromat. The luxuriousness of amenities varies from a parking space in a garage or central air and heating, to an in-building gym or spa – it’ll be up to you to determine which are necessary for you, and what you can responsibly afford.

Your Timeline

Now that you have a framework for what you’re looking for in an apartment, you can begin the search. Prices are generally cheaper in the winter, so if you’re flexible on time, you can save tons by waiting until the winter cycle to start the search.

Keep in mind there may be regional quirks to consider; for example, most apartments in Boston, a college town, have a September 1 start date for their leases to coincide with the start of the semester. While you can still find places during other months of the year, just take that in consideration when planning your apartment hunt in Boston, or any other place that might have similar wrinkles.

You can find available apartments by a simple Google search. When an apartment sparks your interest, you can schedule a tour of the apartment with a leasing office or agent. Note that these agents, also called brokers, represent the landlord and orchestrate the transaction.

If you’re looking to secure an apartment quickly – maybe you just landed a job and need to relocate right away, consider an apartment with a short lease so that you can live in the neighborhood without committing for a full year to see if it’s a good fit for you. You can find leases as brief as one-month long; the shorter the lease, typically the more expensive the rent will be. There are 6-month, 9-month, and 12-month leases that you can choose from.

To fast-track the process of renting an apartment, you can schedule all your apartment tours in the same day or weekend. It’s best to bring a checkbook or have access to an electronic transfer option to immediately pay a deposit on an apartment. Note that apartment prices fluctuate regularly – be aware that what’s listed on a website can change later that day.

Apartment Considerations

 

What Documents Do I Need?

The best way to know what documents you’ll need when applying for an apartment is to ask your leasing broker. We’ve listed the documents that are frequently requested by brokers:

1. Job letter

This includes your position, income, and duration of employment. Reach out to your HR department to request a copy.

2. Proof of income

These documents demonstrate that you have reliable income. Paystubs, bank statements, and W-2 forms are great options. 2-3 documents to prove income are usually requested. 

3. Photo ID

This can be either a driver’s license, passport, or ID card.

4. Letter(s) of recommendation or a renter’s resume

These are letters from previous landlords, or a list of previous landlords with their contact information. If this is your first apartment, you can ask a credible source to be your reference, such as a friend, coworker, instructor, etc.

5. Application

Applying for an apartment isn’t free – an application fee is generally issued to cover background checks, credit checks, and other processing fees. The cost of the fee can vary based on where you‘re looking to rent, but a ballpark estimate is around $20 to $50.

6. Checkbook or electronic check

Once approved as a new tenant, you’ll be asked to pay a security deposit, usually a check or electronic transfer to your landlord. This payment is usually the same amount as the price of a month’s rent and acts as a measure of security for your landlord if you back out of the lease or damage any of the property. You’ll get your security deposit back as long as you keep the apartment intact and stay for the duration of your leasing contract.

7. Credit Score

Landlords want to know that you’re capable of making payments on time, and what better way to do that other than check your credit history? There are plenty of sites that can help you find your credit score; check out the Best Free Credit Reports according to The Balance.

8. A reference letter for your pet

If you’re staying in an apartment that allows pets, you may be asked to provide a letter of recommendation for them. This shows the landlord that they won’t damage the apartment or cause any disturbances.

9. Paperwork for your car

If a landlord offers parking, you may be asked to provide documentation such as your car’s registration and insurance.

10. Co-signer

Although a co-signer is not technically a document, they contribute to a crucial piece of paperwork. A first-time renter will almost always be asked to have a cosigner on the lease. This person will be equally as responsible to pay the rent – a parent or guardian will act as a co-signer most of the time.

It’s key to keep your documents organized during this stage in the renting process. As you tour different apartments and speak to different brokers, you’re going to want to be sure you’re not misplacing any personal information, so create a filing system for yourself to keep everything in check.

Make copies of your documents to give to the brokers. You should always keep the original copies but bring them just in case you’re asked to verify any information.

It’s a competitive market, so be ready to act quick and fill out the application and pay your deposit on the spot because the apartment you like might not be available the next day. That’s why it’s important to do your research before seeing the physical space. Having your documents set and ready to go can be the difference to securing your dream apartment.

What to Know About Agents and Brokers

Many renters work with agents and brokers to help them find their apartments. While most New Yorkers use the terms agent and broker interchangeably, there are differences between the two, according to RentHop. 

• Real Estate Agent: This refers to anyone who earns a real estate license. There are different state requirements, but all states require aspiring agents to take a minimum number of classes and pass two tests to earn their license. An agent then must work for a broker and attach their license with a brokerage. 
• Real Estate Broker: This refers to an experienced agent who decides to further their real estate education. They complete additional courses and pass a broker’s license exam. Once they earn their license, a broker will bring agents to work under them for their brokerage. Typically, the broker takes on a leadership role and guides their agents through the rental and sales process, providing tips and insight. 

When renting an apartment, most prospective renters will work with an agent. For the rest of this guide, we will refer to all real estate professionals as “agents.”

Pros and cons of working with an agent 

There are several advantages to working with an agent, and some renters may prefer working on their own. When working with an agent, a renter can expect the following: 

Pros

• The agent should have a wide range of knowledge about the neighborhood, property and current market. They may have access to apartments that renters will not see online, and the agent may even have relationships with landlords where the renter receives a special deal on their rent price. 
• An agent’s knowledge also spans through the application process. The agent will guide the renter through the process and check their documents, ensure everything looks complete, and give the renter the best possible chance of getting their application accepted. Additionally, an agent with a relationship with the landlord will know what the landlord wants to see on the application and can bring that knowledge to the renter. 

Cons

• Some agents may charge their clients a broker’s fee, meaning the renter will have to pay more than the first month’s rent and security deposit to acquire the apartment. Continue to the next chapter to learn more about fee versus no-fee listings. 
• A renter has to work with the agent’s schedule to ensure they can view apartments. While most agents will try to accommodate their client’s schedules, they can be swamped during the peak rental season and only show certain apartments at specific times. A renter, therefore, may have to take time off work or rearrange plans to attend open houses and see the unit.  

How to find an agent 

The easiest way to connect with an agent is by inquiring about a listing online. Agents directly advertise their listings on sites like RentHop, and renters can inquire about the listing they’re interested in working with an agent and view it directly. 

A renter may also research brokerages online to find one that specifically deals with the type of apartment they’re interested in or the neighborhood they want to rent in. When a renter goes to that brokerage’s website, it typically lists all their active agents and includes their contact information. The renter can, therefore, directly reach out to the agent and ask about their available listings. 

How to find an apartment without an agent 

Renters can also circumvent the agent process by renting directly from landlords and owners. On RentHop, renters can search specifically for units by the owner, meaning that the unit’s owner posted the listing themselves, and the renter will directly engage with them. Owners can be those looking to sublet, landlords, or management companies. When a renter directly reaches out to the owner, they will not pay a broker’s fee and will submit their application right to that person. 

How to Pay Rent

Set a reminder to send your payment in on time or set up an automatic payment method to your landlord.

Talk to your landlord about how they prefer to receive your payments (e.g. check, electronic transfer, Venmo, etc.), and the date each month you should be paying the money buy. Communicating how and when you pay your monthly rent will ensure you avoid any late fees.

Tips for Saving Money While Renting

1. Roommates

Splitting the cost of rent with a roommate or two can save you a significant amount of money. Be sure that you’ve established ground rules before you commit to a roommate – being on the same page about pets, hosting guests, and who gets what furniture when the lease is up can make or break the experience of renting.

2. Renters Insurance

Renters insurance covers the costs of any unexpected damage, liability, or theft to personal property. While renters insurance isn't required by law, some landlords will require tenants to be insured.

3. Affordable Furnishing

You can find decorative and comfortable furniture at a reasonable price if you know where to look. IKEA, Wayfair, and Facebook Marketplace are great places to start when furnishing your apartment. And as far as toiletries go, dollar stores offer products at competitive prices.

4. Ask before you paint

Save yourself from a fee and a reprimand by checking in with your landlord before you start painting any walls or hanging up wall art. It’s better to get the ok, then to not ask and pay fines.

This is part of a bigger series that was designed to guide recent college graduates towards reaching their professional goals and benefiting from their studies. Check out our guide to post-graduate life to learn how to leverage your degree financially.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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