Are you planning on renting a house? This article will give you some ideas on what to look for before renting a house. Further, I'll share with you how you can also invest in real estate while you are renting as well. This way, you may be able to get the best of both worlds.
I want you to know that where you live is a big issue because it doesn't only determine your comfort, it speaks a lot about your personality and class.
Hence, if you're thinking of renting a house or plan to relocate to another apartment, these are things you must know or consider before renting an apartment.
Many landlords have to make a decision between better tenants or higher rents. Therefore, it's not just you, the prospective tenant that has to determine what to look for.
Things To Know Before Renting A House
Before renting a house, here are some things you should know.
Size and Location
Before delving into the apartment, you must have an idea of the apartment you want to rent. Is it a mini flat, two bedrooms, three bedrooms, duplex apartment? Your family size and your personal opinion will play a significant role in this selection.
Moreover, once this is determined, the next thing is to consider where the apartment is situated. The location of a house for rent determines your budget. For instance, a place in an Estate will be different from a regular street.
Also, the rent for an apartment in a civilized environment will undoubtedly be different from the one in a rural setting. It would be best to consider its proximity to your workplace or place of business or better still to the sites you visit regularly.
A location is as good as its neighborhood. The neighborhood determines the security of the area. The community is not a 100% guarantee of security, but you know what to expect. Hence, you may check whether it is in a gated residence, check for burglar proofs of the windows and doors, proximity to a police station.
However, you should also investigate the safety record of that community. To do this, you can ask around the people dwelling in that community. Besides, check the policies of the environment, whether you are satisfied with it or not.
It would be best to clearly understand the rules binding the community before signing an agreement to rent the apartment.
Rent Agreement & Terms
One of the major causes of landlord and tenant disputes is because many tenants are not aware of the rental agreements. You will indeed sign the rent or lease agreement after perusal, but how many take into cognizance every term in the contract?
One vital thing to look out in an agreement is the break clause and the release clause that many tenants overlook due to ignorance. Moreover, there should be an agreement reduced into writing between the landlord and the tenant on certain things like the tenant's right to alter the apartment before renting an apartment.
If there is a consensus about alteration, an aspect you may want to consider is you “remodeling your bathroom.” If the bathroom is spacious, you may consider converting a bathtub to a rain shower, as this will open up more visual space more than any other upgrade.
You may also consider freestanding vanities, faucets, flooring, walls, lighting, and bathroom mirrors. Remodeling your bathroom will not only replace the old one used by previous tenants but will surely give you a sense of satisfaction.
As earlier stated, where you wish to rent should reasonably afford you a level of comfort. Imagine you rent an apartment where there is an acute shortage of electricity supply, and you have to run a generator 24/7 for 365 days.
Apart from the monetary implication, you cannot overemphasize the noise in the neighborhood. Noisy nighborhoods with lots of traffic, foot traffic, and animals is no good.
Also consider the electricity frequency in the area before renting the apartment. Does the apartment have an adequate water supply? Does it run in every corner of the house? If water doesn't run, is there a reservoir or well that can serve the purpose?
Furthermore, have a check on the road leading to the area, whether good or bad, because bad roads spoil good cars apart from easy access. Without these facilities, living in the area may make your house a little bit uncomfortable.
There is nothing worse than moving into a new place and realizing that you should have been aware of some information before making your final decision of renting that apartment. To avoid regret after renting an apartment do ensure to put all the factors discussed into consideration.
Investing In Real Estate
Real estate is one of my favorite ways to build wealth for the average American. The housing market is very strong post-pandemic. If you rent, you will likely fall father and father behind. Therefore, even though you are considering renting a house instead of buying, you can still invest in real estate and benefit from capital appreciation and rent increases.
The best way to invest in real estate is through real estate crowdfunding. I've personally invested $810,000 in real estate crowdfunding to diversify my real estate investments and earn rental income 100% passively.
My favorite two real estate crowdfunding platforms are:
Fundrise: A way for accredited and non-accredited investors to diversify into real estate through private eREITs. Fundrise has been around since 2012 and has consistently generated steady returns, no matter what the stock market is doing. For most people, investing in a diversified eREIT is the way to go.
CrowdStreet: A way for accredited investors to invest in individual real estate opportunities mostly in 18-hour cities. 18-hour cities are secondary cities with lower valuations, higher rental yields. They also have potentially higher growth due to job growth and demographic trends.
Both platforms are free to sign up and explore. If you are renting a house, you must invest in real estate to at least ride the wave.