Renting a home or apartment is an excellent option if you cannot qualify for a mortgage loan, or if you don’t want to be responsible for major home improvements and maintenance. But while renting has its benefits, life as a renter has its downside. But don’t let this discourage you. As a renter, there are several ways to protect yourself.
1. Know your legal rights
It is important to understand your rights as a renter. The more you know, the less likely a landlord will take advantage of you. For example, according to the Protecting Tenants at Foreclosure Act passed in 2009, if the property you’re renting enters into foreclosure, “you have rights such as a 90-day notice before an eviction, and the right to complete the lease.”
2. Read your lease agreement carefully
It doesn’t matter whether you’re renting from a relative or a friend, you need a written lease agreement. This outlines the terms of the lease, such as the monthly payment amount, the security deposit amount and expenses that you’re responsible for.
To avoid being taken advantage of by your landlord, it’s also important that you read the lease agreement carefully. Somewhere hidden in the lease, the landlord might include a statement that gives him permission to enter the property without notice. Yes, it’s his property. But since you’re living in the home, you have the right to include a clause in the agreement that says the landlord must notify you before entering the home. If the landlord refuses to add this addendum, walk away.
3. Get renters insurance
Some renters mistakenly believe that their landlord’s homeowner’s insurance will cover their belongings in the event of a fire, theft or natural disaster. However, the landlord insurance policy only covers the property.
“In the case of fire, smoke damage, tornado, windstorm and more, your possessions are only covered if you have your own insurance,” according to Acceptance Insurance.
Therefore, you need to get a renters insurance policy between $50,000 and $100,000, depending on the value of your belongings. This policy can provide funds to replace damaged or stolen items, as well as pay for temporary housing if you’re suddenly displaced.
A renters insurance policy also offers protection if you have a pet in the home. If your dog bites a guest, you might be liable for this person’s medical expenses. However, a renters insurance policy can minimize your out-of-pocket risk. Policies are affordable and typically run between $15 and $30 per month. Additionally, there are policies for renters who run a home business.
4. Take photographs before moving in
Before moving into a rental property, conduct a walk-through with the landlord. Look for any damages to the property, such as cracks in the walls, permanent stains on the carpet, broken items, or foundation cracks that need immediate foundation repair. Bring these items to your landlord’s attention, and take photographs. This is a slightly tedious task, but it is for your protection. Once you move from the property, the landlord may attempt to blame you for broken items, and he might deduct the cost to fix these items from your security deposit.
It’s also smart to write down any pre-existing damages or broken items. You and your landlord should sign this document, and then include a copy with your rental agreement. For instance, if you notice damages on the roof, you should alert your landlord immediately; this should be repaired immediately with the help of professional roofing contractors. And if there are electrical repairs that needs to be done as soon as possible, a licensed electrician should be contacted.
5. Get receipts
Each month that you submit a rent payment, write your landlord a check and then print a copy of this check once it has posted to your account. This is an excellent way to keep an accurate record of rent payments, in the event that your landlord accuses you of non-payment. It is never a good idea to pay rent in cash. If you do, ask for a receipt before leaving the rental office.
Renters don’t have to deal with down payments or closing costs, and once their lease expires, they’re free to move without worrying about selling a property. But although there are benefits to renting, it is important that tenants know their rights and take steps to protect themselves.
