Topic 01 of 20
Renting your first place, step by step
A first lease is often the largest contract you have ever signed, and most of what goes wrong with it is decided before you get the keys. This topic walks through renting in the order it actually happens, so each decision is made with the next one in mind.
Renting your first place guides
The five stages of renting
1. Decide what you can pay
Before looking at a single listing, decide the most you will pay each month including utilities. A common yardstick is the federal housing definition of cost burden: housing costs above 30% of income. It is a yardstick, not a rule, and the guide on rent affordability shows how to test a number against your actual take-home pay.
2. Search and screen listings
Compare total monthly cost, not just rent. Parking, pet rent, trash, water and required renters insurance can add a meaningful amount each month. Be wary of any listing that asks for money before you have seen the unit or signed anything; rental scams copy real listings and ask for a deposit by wire or gift card.
3. Apply
Applications usually ask for ID, proof of income, rental history and permission to run a credit or background check. Fees vary and some states cap them. Apply only to places you would really take, because every fee is gone whether you are approved or not.
4. Sign the lease
The lease decides who pays for what, how much notice you need to give, what happens if you leave early and whether rent can change at renewal. Read it all. If something was promised verbally, such as a repaired dishwasher or a waived fee, ask for it in writing as part of the lease or an addendum.
5. Move in and protect your deposit
Walk through the unit with your phone camera before you unpack. Note every scratch, stain and broken item on the move-in form and keep a copy. This record is what you will rely on when you move out and ask for your deposit back.
Your rights depend on where you live
Tenant law is mostly state and local. Deposit limits, the deadline for returning a deposit, notice periods and repair rules differ from place to place. Fair housing law is national: landlords cannot refuse to rent to you or set different terms because of race, color, religion, sex, national origin, disability or familial status. Your state attorney general or housing agency usually publishes a tenant handbook, and it is worth reading before you sign.
When money gets tight
If rent becomes hard to pay, contact your landlord early rather than after the due date, and look for local rental assistance. Many areas have emergency programs, and HUD lists where to start.
Renting checklist
Tick items as you go. Ticks stay on this page only and clear when you leave.
Questions people ask
How much should I have saved before renting?
Plan for the first month's rent, a security deposit, application fees, utility deposits or setup fees, moving costs and basic household items. Many people need two to three times one month's rent in cash at move-in, but the actual total depends on your landlord, your state's deposit rules and what you already own.
What if I have no rental history or credit history?
Landlords may accept a co-signer or guarantor, a larger deposit where state law allows it, proof of steady income or references from an employer. Ask what the landlord accepts before you pay an application fee.
Can a landlord deny me because of a screening report?
Yes, but if a landlord rejects you based on a tenant screening or credit report, they generally must tell you and name the company that supplied it, and you can get a free copy to check for errors. The CFPB explains what to do next.