Today there are many reasons why people are renting instead of purchasing a home. With the present economy, for many it is not a choice but a last resort.
Many of the people now renting would prefer to own a home; actually some did, but were foreclosed on or had to go the short sale route.
In today's market credit has tightened and many don't have the credit score or down payment to qualify for a loan.
Recently I have also noticed more incidents of separation or divorce. In such a case one are both parties can no longer afford a house so renting is the only option.
Then there are the young people getting married, who are not yet in a financial position to purchase a home.
There is also a market for off campus rental in the college town.
Relocating to a new area, many start out renting before committing to a community.
I have also come across the group of renters who are very happy with this type of housing,it could be a combination of not wanting to deal with all the issues that goes along with home ownership, or they never reach that level of finance stability so that home ownership could be on option.
No matter what reasons you might have for renting here are some things you need to know.
Terms you will encounter in the rental market:
The owner will be called the landlord or lessor.
The person renting is the tenant or lessee
In some cases the landlord will request a guarantor- this is more common where students are involved. This person will pay past due rent or damages in the event the student fails to do so. Parents are usually the guarantors.
When renting an apartment or other property, the landlord will request a rental application that will ask for references. Your authorization will also be requested so that a credit check can be made.
If your application is accepted a security/deposit will be requested. This will usually be 2-3 months of the agreed upon monthly rental.
The lease options should also be discussed. Some landlords will do a month-to-month rental however the norm is for at least a years lease. These days, because of the present housing market conditions we are noticing more leases with the option to purchase.
If you intend to paint the apartment or are considering making any type of improvement you must consult the landlord.
The landlord should provide you with disclosures. If the house was built prior to 1978, you should get a lead disclosure. Make sure that there are also fire and carbon monoxide detectors present in the unit.
It is important to discuss upfront who pays for utilities as well as what maintenance will be provided by the landlord. This should all be written into the agreement.
You should also be told what the penalty is for being late with the rent, returned checks, as will as how the termination of lease will be handled.
Before moving in you should walk through with the landlord to note any problems, such as broken windows, damage to walls etc. It might be a good idea to take a before picture or video to cover yourself.
Keep in mind the landlord's insurance will not cover your personal property so it is a good idea to get your own renter's insurance.
One major concern for many looking for a rental is finding a house or apartment that is pet friendly. This can be a real challenge. Some landlords will not accept pets because in some cases it affects the cost of the property insurance. One idea is to let the landlord know what type of pet it is and sometimes a small pet is acceptable.
Jennifer Fivelsdal - JFIVE HOMES REALTY LLC - 845-758-6842- jennifer@jfivehomes.com
www.jfivehomes.com or www.midhudsonhomevalue.com
