If you are moving out of your family home or transiting away from the dorm rooms, renting your first apartment is an extremely exciting time and for many, it is a rite of passage. Of course, figuring out how to rent an apartment comes with priorities and responsibility, as well as learning to balance between wants and needs.
Searching for my first renter place, I was overwhelmed with the process despite having planned out what I need. Condominium hunting, house viewing, budgeting, and the logistics of moving each come with their headaches, but is well worth it if you find a place to call home for the next 2 years.
To make this process seamless for you, I put together a checklist for the first time condominium renter and everything you should know to rent your first condominium at a good deal.
Step 1: Determine your budget
If you are renting a home for the first time, you’d be surprised how common it is for us to overbudget the money we can spend on rent. From stories I’ve heard, some of us can allocate up to 50% of their gross monthly salary for rent.
Personally, I would recommend you to limit 30% of your gross income on rent. In fact, this is also highly recommended in many other personal financing blogs where you should put a cap at 30% for renting purposes. I understand this isn’t always possible in expensive cities, but you should try to keep renting expenses at 30% or lower if possible.
Step 2: Determine where you want to stay
I understand how daunting it can be when you want to narrow down the neighbourhood to stay in. This is especially true if you are looking to rent for 2, taking into consideration the commute for both yourself and your partner.
To help you narrow down your choices, consider asking these questions:
- Is my work easily commutable through public transportation or walking?
- Do I prefer driving or taking the public transportation?
- Do I prefer a quiet neighbourhood?
- Do I need to live nearby work?
- How far do I want to be from the basic amenities?
- Do I need to consider the location for my partner?
How I typically approach this question is to put a ranking on each of the above questions. Taking the below as an example,
- I will need to take 2 bus change and 1 train ride to get to work.
- I prefer driving because it is convenient and it gives me the flexibility to plan my day.
- I prefer a quiet neighbourhood.
- I prefer living nearby work.
- It will be good if basic amenities are 5 minutes drive away.
- My partner works from home, so we are good with my requirements.
From the above, I can easily map out and pinpoint what are my key requirements. Simply put, I do not mind driving and I prefer living nearby work and amenities as long as it is not along a main road or highway.
This way, it helps me pinpoint a few potential locations that are worth considering when I go apartment hunting.
Step 3: Consider the parking situation
Why is parking situation important?
If you are looking to stay nearby a public transportation hub, it might not be necessary to consider the parking situation. However, if you expect to drive frequently, then the parking situation is something you do not want to miss as it can contribute to your rent expenses significantly.
Renting an apartment that comes with a parking lot(s) is highly beneficial. This is especially true in the city where you need a reliable parking situation and a place to call home for your car. You will be surprised to know how expensive “temporary” parking lots can be and how quickly it adds up to a substantial amount.
Hence, it is best to also consider the type of car you own and the comfort level you wish to have. Should you take up covered parking, assigned parking or on-street parking that is on a first come first serve basis.
If you do take up an apartment that comes with multiple parking spaces, more than what you require, you can also consider renting out the parking spaces to other residents within the compound. That additional income can contribute towards lowering your rent expenses.
Step 4: Consider the roommate situation
Why is roommate situation important?
I believe it is a fair statement to say that all of us do not want a roommate if the situation permits. However, figuring out the rent on your first job can be difficult especially when finances are tight and having a roommate is great to split the rental costs.
If you are looking to rent an apartment that is far above the 30% budget recommended, then it is worthwhile looking for a roommate. However, before that, you might want to consider the pros and cons of having a roommate and the compromises needed.
The benefits of having a roommate
- Saving money
- Potential lifelong friendship
- Extra help around the house
The disadvantages of having a roommate
- There will less privacy if you and the roommate is home at the same time
- Conflicting lifestyles and hygiene practices
- Expect to share everything, the good and bad altogether
After you’ve decided that a roommate is necessary for you. It is time to start searching for a roommate. You can search for them either through your personal network or post the empty room on listing platforms.
Beyond that, you might want to consider the type of individual and lifestyle that you can tolerate with. Here are some questions to get you thinking,
- How often do you want to clean the house?
- Do you want a roommate with pets?
- Can you tolerating having guests over and for how long at a time?
- How will you split the utilities – especially important if there is air-conditioning in the apartment
Of course, the list goes on from there. Keep in mind that a happy roommate can lead to a lifelong friendship forged in a little house where both are trying to keep costs down.
Having said that, you want to consider having a roommate agreement or a sublet agreement with the permission of the landlord. In the sublet agreement, the master tenant (you, being the primary renter) will be in charge of collecting rent and relaying communications to the landlord.
Step 5: Identify the condominium buildings of your interest
Steps 1-4 is all about setting your budget, expectations and necessity when looking for a place to rent. Having clarity on your requirements, it is easier to identify which condominium building will suit your needs.
Before you start searching for listings to call, it is good to list down a few condominium buildings within your ideal location. For example, when I was looking for a place to rent in Seksyen 17, Petaling Jaya, I went through the many condominium building in Petaling Jaya and finally identified the top 5 building that fits my requirement.
For you, it is up to you to have up to 7 or 8 buildings, according to your preference.
To help you visualize, I listed the below condominiums as my search target, ranked from top priority to the least.
- Seventeen Residence
- Tiara Damansara
- Astana Damansara
- Prima Sixteen
- Li Villas
These are ranked in accordance with my preference, proximity to convenience and parking situation. Seventeen Residence is directly above Seventeen Mall that has been our main source of amenities in the past couple of years. Despite being slightly more pricey, it is a newer residence where the furnishing is new and modern.
Tiara Damansara and Astana Damansara were ranked 2 and 3 accordingly because they demand much lower rent despite their older design and worn out furnishing. On top of that, the parking condition for both condominiums is horrendous and will require us to pay more for additional parking space.
Step 6: Identify the top 3 listings for the condominium of your interest
Now that we’ve listed our top 5-8 condominium buildings of our choice, it is time to scour through the listing platforms to find a good deal.
When looking through listing platforms such as iproperty and propertyguru, it will be good to have an excel sheet to list down the details on the different listings that got your attention. When I go apartment hunting, these are the things I will list down in my excel sheet.
- No. of rooms
- No. of parking space
- The asking rental price
- Furnishing condition
- Property agent name and contact
Once you have a list of these listings, you will want to filter them down further and have the top 5-8 listings to call and view. Sometimes, it is alright to include a listing that is slightly above your budget. It is worth the try to give the agent a call and negotiate the rent.
Step 7: Be at the house viewing
Have you ever heard the phrase, “pictures are for illustration purposes only”? Like it or not, a lot of the listings you see are full of fake pictures meant to entice you.
Hence, it is important to visit the rental place that you are interested in. When you are there, do check out the lights, the water faucet, the appliances and the furniture. Essentially, you want to have a quick feel of the place to answer the key question, “Do I feel comfortable staying here for the long term?”
At the same time, ask as many questions as you need. Here are some quick questions you can ask,
- How much is the rent?
- How much is the security deposit?
- When can I move in?
- What utilities are included in the rent?
- How many parking spaces are there?
- Can I bring a pet?
- What are the amenities provided?
- How long can I lease the place for?
- Can I make any changes to the unit?
- How do I make maintenance requests?
While you are there, also check out the noise levels especially if the apartment is facing a highway or the main road. Do be specific and thorough with all of your concerns, voice out anything that needs fixing and be sure to ask for it before signing the tenancy agreement.
How do I deal with rental scams?
Looking for a rental place on a tight budget can be difficult and made more so with complicated rental scams. Occasionally, you will come across “fake” listings posing as a good deal. Upon calling the listing, the property agent will tell you the place is no longer available but he has other units to recommend.
If it’s me, I will totally ignore the property agent. If the listing has expired, then it should be removed from the listing platform. Having the listing active is an indication of fraudulent practices. Having such an agent act on your behalf is more risk than it is beneficial.
In simple, if you come across “fake” listings, thank the agent for offering his services and walk away. It is not worth encouraging such fraudulent practices and these bad actors are damaging the real estate industry.
Step 8: Budget for upfront costs
Renting a condominium or any other residential unit will involve some extent of the upfront costs. It is wise to consider the budget for a security deposit, the first and last months’ rent and utility deposit.
In most cases, there will be a security deposit of 2 months and the utility deposit of 1 month. On top of that, you may be requested to pay in advance the first months’ rent together with the deposits.
Besides that, there is also the stamping fees to notarize the tenancy agreement.
Step 9: Consider future expenses
Upfront expenses and monthly rent is only a portion of the total costs associated with renting a condominium. On top of that, you might want to consider the utilities, parking, repairs and new furniture.
Utility costs can vary depending on your lifestyle. If you rely heavily on air-conditioning, then the electricity bill is expected to be much higher. Here is a list of common utilities borne by renters,
- Electricity
- Water
- Sewage treatment
- Gas
- Internet & cable
Step 10: Negotiate and seal the deal
After visiting the place and considering the costs involved, it is time to negotiate for the rent. There are some good negotiation strategies that can be applied to swing the rent in your favour. However, be prepared mentally to accept a non-negotiable situation or to walk away from a potentially good deal.
If you are happy with the price, it is time to seal the deal – always get yourself protected with a stamped tenancy agreement.
Before you official wet the dotted line, you want to spend some time going through the clauses stipulated within the tenancy agreement. Here are some of the key clauses you want to look out for,
- How much is the monthly rent?
- How long is the lease?
- Is the lease renewable and can the landlord increase the rent?
- What is the absolute amount required for security and utilities deposit?
- Is there a list of inventory?
- Is there a clause for early termination on the agreement?
What should I look out for during the move-in inspection?
It is important to conduct a move-in inspection with the landlord and the property agent. During the inspection, you want to go through the individual items listed in the inventory and have a good record of the items in pictures or video.
If you notice the furniture is worn out, voice it out to the landlord and make the landlord is aware of the condition. Take pictures and have them filed in a google drive that can be shared with the landlord. Having said that, make sure the landlord does not have permission to temper with the pictures.
Step 11: Organize your move
Now that you finally signed the tenancy agreement and is ready to move into the condominium, it is time for the big move. It is no secret that moving is tiring and can be nerve-wracking for unprepared first-time renters.
To make the move hassle-free and smooth, here are things you can do,
- Discuss the earliest move-indate with your landlord and make the necessary arrangements with the management team.
- Get help from family and friends to start packing and moving – having a trolley is surprising important if you are moving boxes of stuff.
- Set up utilities and arrange a suitable timing with the utility provider.
- Update your mailing address so that you do not miss out any important mail.
What to do if there are defects after I move in?
Typically, renters are given a 1 month grace period to report any defect in the house. The landlord will be required to make good of the situation at their own expense. If you do come across any defect in the house, have open communication with the landlord to arrange for a repair.
Final words
The above article is primarily written out of my own experience renting multiple places over the different years after leaving college. I hope the lessons learnt from my own journey will be helpful to you as you go apartment hunting.
Until the next article, take care!
